The 1970s was a thriving time for the real estate industry and new home construction. Production and custom builders were thriving, due to the fact that REALTORS® were bringing buyers to the new homes. The oil and gas industry was booming, and Denver was the gateway to the Rocky Mountains. The buyers who were purchasing new homes were individuals relocating to the Denver area. While many REALTORS® were introducing buyers to these new homes, builders were somewhat flighty and finicky when it came to paying REALTORS® a commission. Some builders would pay a small commission here and there, and others would pay nothing. There were no rules and regulations and no guidelines to follow. It became apparent that something needed to be done to change the way REALTORS® were getting paid and to resolve problems that arose between the builders and REALTORS®. It was time to make a change, so change there was.
Three individuals and their spouses were very close friends, both in day-to-day business and socially. One was a REALTORS®, one worked for a home builder, and one worked for a new home builder magazine. One evening in 1982 these individuals got together for a potluck at one of the individual’s homes in Aurora, which had a hot tub. It was in the hot tub over a conversation that it was decided to form a committee to discuss what could be done so that builders and REALTORS® could come to an agreement regarding commissions. Several more meetings were arranged to initiate guidelines. Hence, the Builder Realtor Council was formed. The crux of the mission statement was that if builders and realtors could come together, issues could be resolved. Sometimes only the on-site people were getting paid a commission. There was a one-price constant policy whether a REALTORS® was involved or not. So it came to be that co-oping came into play where the REALTOR® had to sign in with the buyer at the new home sales site. This visit would remain good for a 30-day period. After the 30-day period, then the REALTOR® had to stay in touch with the on-site people.
There were many breakfasts, luncheons, meetings, and roundtables that brought REALTORS® and builders together, as well as the sales and marketing arm of the home builders. The first rally was held in Aurora at the Ramada Inn at I-225 & Parker Road. Over 1,500 people attended this rally, and it was very successful. Eventually, a national Builder Realtor Council was also formed.
In the early 1990s, all the big builders met at the National Builder Realtor Council meeting. A bank funded the cost for one BRC member, Linda Philpott, to travel the country and speak about the success that Colorado had between the Builders and REALTORS® and being paid a co-op. By the end of the 1990s, there was maybe just one builder in Colorado that would not co-op. It was at the end of the 1990s that the National BRC disbanded because the bank no longer had the funds to support this cause.
The National Association of REALTORS® (NAR) intercepted the name “Builder Realtor Council” in the early 2000s, because the word REALTOR® is a designation that NAR would not allow the group to use; therefore, the name was changed to the “Builder Realty Council”.
So, the guidelines have stood up over time, and they apply now as they did back then. The Builder Realty Council remains active and productive and seeks to strengthen the bond between builders and REALTORS® and work cohesively together.
Thank you to all of those who have played a very large part in the implementation and development of the BRC. Further, we thank those of you who have served in the various board positions of the BRC and those members who continue to believe in the organization and what we strive to accomplish.