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November
9
9
6 Ways to Construct the Perfect Builder/REALTOR® Relationship
Since 2012, home builders have had the opportunity to feed listings directly to the MLS system used by sales associates around the country. It was a significant step in the relationship between real estate pros and builders––and that partnership has been deepening ever since.
A technology-enabled, collaborative workflow helps builders and sales associates grow together. In recent years, more than half of all buyers considered new construction. However, many real estate experts feel unsure about the best way to reach out to builders and sell new home builds.
Even in today's COVID-rocked world, new home sales are up, and interest remains strong going into the fall. In July 2020, sales of new single-family homes were over 36% above July 2019's figures of 661,000.
That makes July 2020 the single best month for sales of newly built homes since 2006.
But how can you get involved with builders and lay the foundations for strong cooperation?
Here are six ways to get started building a perfect relationship with home builders.
- Start By Knowing What Kind of Builder You Want to Work With
There's no "one size fits all" when it comes to real estate sales associates. It's just as true of builders!
Although all builders provide certain services, they differ in geography, amenities, neighborhoods, and business strategy. That influences the best way you can partner with them.
National Builders
Larger builders operate in a regional or nationwide territory. Since they have their own sales staff, the land development manager is the main point of contact to get you up to speed on business opportunities.
Some builders offer commissions to any sales associate who brings them a buyer, even if you don't have an ongoing relationship. This can be a foot in the door for competitive builders in the 12+ homes per year category.
Midsized Builders
Midsized area builders tend to have a small sales team or work with a single real estate firm. They are more open to outside advice: Find them lots in areas where they want to expand, and you could be brought on to sell.
Small Local Builders
Small local builders offer an open door to opportunity but may have a modest sales volume. They often lack an in-house marketing budget, so a savvy sales associate who knows today's real estate technology can offer true win-win partnerships by handling promotions and sales.
No matter what approach you take, remember builders get lots of pitches every month. Distinguish yourself with something striking and unique, so you get the chance to discuss your value. - Emphasize Branding and Reputation Building for Your Builders
Many builders employ an on-site associate with deep insight into the company, developments, and home features. Before meeting that person, buyers have to hear from you why a builder is right for them.
That positions you in a familiar place: A match-maker between two sides who meet each other's needs.
Learn everything you can about your builder, what makes them special, and why their work is superior for different kinds of buyers. Each buyer you work with has many options, so take cues from them and see how interested they seem: If new construction excites your client, you can set up a meeting.
Strengthening a builder's reputation means more sales and a longer, more fruitful collaboration for you. - Leverage Your Pool of Buyers to Focus Interest on New Homes
One consistent thing you'll notice about new homes is that not everyone thinks of them!
Sure, new construction isn't right for everyone. But as "starter homes" have fallen by the wayside, more people are entering the housing marketing as established professionals with disposable income.
Amidst your first-time buyers, look for those whose finances are strong enough to make a new home a viable option. Then, get used to exploring the advantages with them and overcoming objections!
What about affluent buyers with multiple properties? Many have already considered new construction but haven't yet found the right opportunity.
Working with a builder is a longer commitment, and financing can be a challenge. But it gives buyers the chance to realize the home of their dreams from the ground up. That's an incredible selling point! - Become Familiar with the Intricacies of New Home Construction
Building a new home is a complex process that requires more effort to get started.
Just as you'd ease a first-time buyer's worries about financing, you'll need to do the same about new construction. But there's a catch: All-new construction often means multiple intersecting timelines for financing, construction, closing (which often happens twice!), and more.
You'll not only need to understand the process but be able to explain it in a way that buyers can wrap their heads around. And should delays happen, they're sure to look to you for encouragement and input.
This also means staying involved in the process once a buyer decides on new construction. As a sales associate, you have a special role in translating buyer expectations into outcomes builders can deliver. Always stick to a high touch approach until the keys are in the buyer's hands.
Then, follow up to check on that happy client!
- Get to Know Your Builder's On-Site Associate
With a builder, there's no need to do all the legwork yourself. Many of them have on-site sales associates trained in all the ins and outs of a development and its offerings. You are most likely to step into transactions as a buyer's agent.
The on-site associate is licensed and follows all the guidelines and ethical standards of other real estate pros. He or she is a trained expert on the builder's processes––which leaves you to focus on facilitating the flow of communication between buyer and builder until closing day.
As an advocate for the buyer's needs, you can accelerate the sale and continue to build your practice. - Make Marketing Automation a Cornerstone of Your Growth Strategy
The builder you work with becomes a big part of your branding. Make sure you integrate information on new homes and desirable developments into your marketing!
DeltaNET™️ 6 CRM customers can already showcase builders, their communities, and model homes directly on their real estate website. This helps you segment your website leads and capture attention from those who might already have an all-new home in mind.
A unified real estate CRM platform like the DeltaNET 6 CRM gives you a head start in ensuring all your marketing is fine-tuned to help you meet more new home buyers. That includes your website, blog, social media, email marketing, and video content–just to name a few.
Strong customer relationship management gives you visibility into where your leads come from, their interests, and where they stand from the first meeting to closing day. That's especially crucial as you diversify lead sources, establish builder relationships, and cater to buyers with different goals.
Real estate has weathered this year's tectonic economic changes better than most industries. The horizons of growth for new home construction are vast––now is the time to seize these promising opportunities, expand your skillset, and "build" profitable business relationships.
