Jeff MacKinnon

Most every media report you read right now will tell you using statistics how the real estate market Canada-wide has begun leaning towards one that favours buyers and not sellers.

The Calgary Herald this past week (on Feb. 19) came out with a report using RBC Economics that among other things let us know that “Calgary saw its sales fall year over year in January almost 15 per cent.” The monthly Calgary Real Estate Board for January said the same thing and the one that comes out in a couple of weeks for February will as well.

For realtors there’s another indicator that shows up in our emails every morning that lets you know things have changed – invitations from the Calgary area home builders to come out to see their new product and bring your clients with you. The emails often contain incentives from builders such as free basement developments and upgrades. A good reason to take a realtor with you when you first approach a builder is that they will know of those incentives and can push for them.

When the going is good Calgary’s home builders naturally don’t need to court the city’s realtors, as they get a steady stream of visitors to their showhomes naturally. I recall a couple years I ventured into a showhome in Mahogany on a scouting mission for some clients only to be told the builder had no available lots. It could have been the truth, but it’s likely they were holding their available inventory for buyers with no representation.

These days I’m getting a constant stream of emails from builders letting me know that they’ve got new options in one of Calgary’s many new communities (it’s really hard to keep track of them all) and please don’t hesitate in stopping by to have a look. Lots of those emails are for new condo complexes and townhomes, a segment of the market that has most definitely entered the ‘buyer’s market’ phase. Occasionally now you get invited to a realtor-only preview of new product, which are valuable. When the market is hot, those invitations aren’t forthcoming.

The relationship between builders and realtors is a tricky one. Builders are perceived as preferring you come alone to their showhomes so they don’t have to deal with us. Lots of folks says realtors are necessary for new builds. I have had nothing but positive experiences with builders during my time in the business. Lots of cooperation and always smiles when I show up.

I can’t write this without making a case for why working with a realtor is a good idea when you are having a new home built from scratch. Here goes ( I swiped this from a builder’s website actually):

Free Representation: The builder pays the commission, meaning you get expert help without paying for it directly.

Negotiation Power: Realtors know what builders can offer (e.g., closing cost credits, free upgrades, or better financing) and can negotiate on your behalf.

Contract Review: Builder contracts heavily favor the builder; an agent will explain the fine print, including hidden fees and deposit details.

Independent Inspections: Realtors can arrange independent inspections to ensure quality, rather than just relying on the builder’s inspection.
Builder Accountability: Your agent keeps the builder accountable for timelines, promised upgrades, and fixing any defects before closing.

Expert Guidance: Agents help you navigate the process from selecting the right lot to choosing upgrades that will boost resale value.