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New home construction is operating at peak capacity, and new home sales are the hottest category in residential real estate today. Fannie Mae forecasts new home sales will soar by nearly 12 percent this year, compared to only 3.4 percent of existing sales.
New home sales will soar by nearly 12% this year, compared to only 3.4% of existing sales.

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Most builders use several sales channels to move their homes. Some 87 percent of homebuyers use a real estate agent or broker — a share that has increased steadily since 2001. That is one reason why builder-broker relations have come a long way.

More home builders than ever before have established relationships with brokers and agents, while many others are receptive to the idea.

Working with home builders and new construction is different from selling existing homes in several important ways. These differences can lead to honest misunderstandings between well-meaning people due to the subtle differences inherent in the sale of new and pre-owned homes.

When both sides are aware of these subtle points, they deal with these differences in a more constructive manner.
Some 87% of homebuyers use a real estate agent or broker — a steady increase since 2001.

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Why builders have partnerships with lenders and title companies

Builders use specific lenders because they know they can rely on them to perform. Builders need to know that a sale will close when construction is complete so that they will not incur carrying costs. They prefer to work with lenders who understand their business.

Home builders also need a title company that can handle sales in the states where they do business and is experienced working with them.

When a builder starts a home, its title company creates and maintains a file that will help each home close quicker. A title company that has a history with a builder will not need a builder’s corporate resolutions and authorizations for its signatory each time it titles a new home.

The title company’s legal department will also know in advance the ownership history, subdivision restrictions and homeowners association if the builder has established one.

Whenever possible, builders prefer to work with the same lenders and title companies to save money and time because of the efficiencies involved.

Real estate agents who insist on working with different vendors will find it difficult if not impossible to develop fruitful and lasting relationships with builders.

Like many brokerages, some builders have their own captive lenders and title companies, and these can be substantial profit centers for them just as they are for brokerages.