According to a Bank of America survey of real estate agents, Pulte Homes was the most recommended home builder in the 40 major markets surveyed while KB Home was the least recommended. These numbers are important because approximately 40% of new home sales involve a real estate agent. In addition, homebuilders are increasingly reliant on real estate agents as market conditions weaken.
Here are the results of the survey:
- Pulte Homes - 30.2%
- Toll Brothers - 26.0%
- Lennar Corp. - 22.4%
- Centex Corp. - 16.4%
- D.R. Horton - 16.0%
- WCI Communities - 16.0%
- Ryland Group - 14.0%
- Meritage Homes - 13.9%
- Standard Pacific Corp. - 13.6%
- Hovnanian Enterprises - 7.9%
- NVR, Inc. - 7.7%
- MDC Holdings - 3.9%
- Comstock Homebuilding - 0.3%
- KB Home - (9.8)%
With that high of a percentage of new homes sales involving agents, you would think that builders such as KB Home, Comstock, MDC Holdings and NVR would work a little harder at getting recommended by real estate agents and brokers. Perhaps they still think that cutting out/screwing over the agent, broker and consumer and keeping the co-op fee to themselves is worth more than their reputation.
On a related note, Pulte Homes ranked highest in customer satisfaction in 11 U.S. markets, as reported by J.D. Power and Associates 2007 New Home-Builder Customer Satisfaction Study. And don't worry - the J.D. Power and Associates survey's results can't be bought like some others.
Source: Banc of America Securities, LLC
UPDATE: If you would like to see a copy of the entire September BoA survey, please leave a comment and link to your email address and we will send it to you as a pdf file.
The names and percentages of Realtor recommendations is surprising. I'd like to see the entire survey.
Posted by: Julie K | October 24, 2007 at 08:44 AM
Julie - I can email you the entire survey in pdf format if you'd like. Just let me know.
Posted by: Danilo Bogdanovic | October 24, 2007 at 03:24 PM
I'd love the pdf, thanks!
Posted by: Annie Milnes | November 08, 2007 at 12:04 PM
True, an agent plays a crucial role in promoting a particular developer. Why Pulte Homes (http://www.resortscape.com/default.aspx?ct=r&q=Pulte%20Homes&utm_medium=linktous&utm_source=PT) tops the recommendation list is because they make it point to provide even the agents a good share of the profit. An agent is mostly the first person that a buyer contacts while looking for a home and so he plays a key role in the selling process. And nowadays with search portals like resortscape.com playing a very effective role with online property listings, its time the blood-suckers be taught some honest business lessons. You effort in bringing out this authentic read is commendable.
Posted by: Ismil Alina | November 22, 2007 at 11:45 PM
I'd like to see the PDF. Thank you.
Posted by: Ann Meade | January 30, 2008 at 10:39 PM
Ann - Shoot me an email and I'll get you the latest survey results over to you.
Posted by: Danilo Bogdanovic | January 31, 2008 at 01:12 AM
I'd like to see the entire pdf of this article please. Thank you!
Posted by: Audrey Cabrales | March 26, 2008 at 05:09 PM
Audrey - I hope that I still have it somewhere...it's been a while. Email me so I can reply back with the pdf doc.
Posted by: Danilo Bogdanovic | March 26, 2008 at 05:52 PM