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Pros and Cons of Realtors “Sitting the Models” For Home Builders

Women in Real Estate
Written by Posted On Sunday, 23 February 2025 07:15
Pros and Cons of Realtors “Sitting the Models” For Home Builders

As a realtor, having the opportunity to sit the model home for a builder can be exciting and challenging.  This arrangement can offer numerous benefits but has potential drawbacks that need careful consideration

Sitting a model or inventory home for a home builder is not the same as hosting an open house for your listing.

Below, we dive into the pros and cons to help you make an informed decision.

Pros

1. Opportunity to Find Resale Listings  One significant advantage of sitting in the model home is the chance to find resale listings. When prospective buyers visit the model home, they may express interest in buying a resale property instead of a new one. This can lead to valuable opportunities to secure additional listings and expand your portfolio.

2. Interactions with Potential Buyers  Sitting in the model home allows you to interact with visitors who shop the builder's homes but prefer to buy a resale property. These interactions can help you build relationships and convert these visitors into clients. Face-to-face interactions can also provide insights into buyer preferences and trends.

3. Listing Builder's Homes with MLS  As the model home sitter, you may have the opportunity to list the builder's homes with the Multiple Listing Service (MLS). This can enhance your visibility as a realtor and increase the exposure of the builder's properties to a broader audience. It also demonstrates your expertise in marketing and selling new construction homes.

4. Learning from Other Brokers  Working as a model home sitter lets you observe how other brokers work with new home prospects. This can be an excellent learning experience, providing valuable insights and strategies that you can apply to your own real estate practice. You can also better understand effective sales techniques and client management.

Cons:

1. Weekend Work Expectations  One of the main drawbacks of sitting a model home is the expectation that you work weekends. Since most potential buyers visit model homes on weekends, you may need to sacrifice your weekends to accommodate these showings. This can impact your work-life balance and personal time.

2. Builder's Listing Practices  Another downside is that the builder may not list their homes exclusively with you. This means you might not get all the listings you hoped for, and the builder may also choose to work with other agents. This can limit your earning potential and create competition within the builder's team.

3. Extended Work Hours  You may also be expected to work more than we agreed. This can lead to increased workload and stress, particularly if you have other clients and responsibilities to manage. It's essential to clearly understand your work hours and duties before committing.

4. Commission Misunderstandings  Commission misunderstandings can be a significant concern. It's crucial to clarify how your commission will be calculated—whether it's based on the net or sales price, including upgrades. Any ambiguity in this area can lead to disputes and dissatisfaction, so clear communication with the builder is essential.

Conclusion

Sitting the model home for a builder can offer realtors unique opportunities to expand their client base and enhance their real estate expertise. However, weighing the benefits against the potential drawbacks, such as weekend work expectations and commission misunderstandings, is essential.

By carefully considering these pros and cons, you can determine whether this opportunity aligns with your career goals and personal preferences.

Our recommendation: Ask the builder if he is willing to list his home with you. If the answer is ‘no.’ Your risk of losing focus on your core resale business could prove costly.

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David Fletcher, NHCB

David Fletcher, a retired Realtor, spent his entire 25-year career recruiting, training, and supervising Realtors to serve as full-time onsite agents for more than 50 communities listed by Fletcher to sell and market the builder/developers communities. His teams sold more than $3 billion in new homes and condominium inventory, mostly on the west coast of Florida. More than 6,000 Realtors have taken the course he wrote to show them how he did it. His real estate career began in St. Petersburg, FL, when the developer-client of his public relations firm purchased his company and named him Vice President of the American Housing and Development Corporation building Bay Island, the waterfront community in South Pasadena, FL, where he served for three years before opening his real estate brokerage specialing in new construction. Along the way, Fletcher wrote Condominium Sales and Listings, 226 pgs, was a featured speaker at a National Association of Realtors convention, Chaired the Sale and Marketing Council for the Florida Home Builders Association, and was given a key to the city of St. Petersburg by its Mayor, for his work on the city's economic development council.

https://www.newhomecobroker.com

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