The relationship between real estate agents and builders can be complicated, but there’s no stopping them when it clicks. This is because when the partnership strikes, their business reaches new levels.
But many things can get in between the two parties, such as certain thoughts in the agent’s mind that if there is direct communication between the buyer and the builder, then there will be no need for the agent. On the other hand, some builders might think that the agents are going to take a big chunk of commission out of their deals which means decreased profits.
The truth is that when you become a builder’s real estate agent, you have a great source of immediate and ongoing listings.
But becoming a successful builder’s agent is no piece of cake. You’ll have to maintain successful relationships with more than one builder. This can be best achieved by keeping in mind the builder’s products and what they expect from their deals. Also, the most important element is the ability to deliver continually.
Why Builders And Agents Should Work Together?
As mentioned before, real estate agents might think that if builders and buyers communicate directly, then agents would be out of the game, and builders think that agents take huge commissions, ultimately reducing the builder’s profits. But the truth is that the goals of both builders and agents are the same – sell more houses and get more referrals.
How to Build Relationships
The real estate agent and builder can connect through open houses. Open houses are held for trade contractors and other industry insiders by the builder. Suppose real estate professionals are invited to view the new units and question about all they have in mind about the property. In that case, a good relationship will develop between both parties and ultimately be good for both of them.
If you’re not interested in an open house, then there are other relationship-building ideas:
- Attend a sales meeting at a local real estate office
- Set up a meeting between the builder’s sales team
- Invite an entire highly effective real estate office on a personalized tour of a finished or unfinished home
Pros of Becoming a Builder’s Real Estate Agent
The advantages of a firm relationship between a builder and an agent are obvious. There will be a lot of new home listings, and it will attract a large number of buyers who will be looking at many properties with you.
For agents, please note that there can be a clause in contracts that may prohibit you from showing other new construction projects to prospective buyers. However, a builder’s real estate agent can have the opportunity to work with other builders due to referrals. Builders usually know other builders, and most of them will prefer working with someone who knows how to sell homes.
Why Should You Not Become a Builder’s Real Estate Agent?
Representing a builder is so appealing. That is why the cons of becoming builder’s agents are overlooked. One disadvantage is that working with builders often comes with long hours, strict schedules, and commitments to holding frequent open houses.
Builders often don’t pay as high, which can also be discouraging.
If you successfully land a builder in a new construction project, it will mean that you will have to constantly over-deliver commencing from the initial point of contact.
Tips for Agents
Here are some tips for real estate agents for a good relationship with builders. Firstly, if you are visiting an open-house event or a walk-through with a likely customer, it would be better not to take the client through on your own. Instead, you should let the site agent take them through properly without any interruption. Otherwise, you may lose the customer and sales prospect and waste time on a deal that may not push through.
The builder’s site agents know exactly what to do regarding the presentation of the property. They have adequate training to present the amenities and features of the property. Think of a boss who gives complete freedom to an employee to do a task. Likewise, let the builder’s site agents give an informative presentation to the client in a way they think is the best.
You can play a supporting role by putting in some questions which will answer doubts in the client’s mind. You can also ask the client if they have any questions and put them in front of the site agent. The goal is to help the client get the property of their dreams as quickly as possible.
Other Ways to Land Your Builder
If you want to become a builder’s real estate agent, you can send the developers weekly marketing gifts or messages followed by a phone call to see how their sales are going. You should also dispatch follow-up calls to get an idea of what the developer wants.
Don’t think that you are going to be the only agent to send emails to the builder. Keeping this in mind, you’ll have to do something different. Maybe adopt an impressive strategy to get the attention of the builders. Make a list of all the builders you can reach out to. Interact with them through emails and frame the content in a way that is memorable and catchy.
The gifts you send them can have your contact number on them, and make sure you’ve done your homework about the properties of the builder. Introduce yourself to the builder through a call after the initial email exchange.
Also, consistency is the key, so you’ll have to follow up with the builder at least once a month to be successful. Keep them updated with marketing reports on trends of the new constructions. Try to deliver it to them physically. If that is not possible, then mail them. Email should be the last option.
Further, research on the builder’s future projects and ask if they might need help with sales. Don’t get disheartened if the builder declines a request. Instead, show them that you are committed, professional, and the right one for upcoming projects.
The Bottom Line of Real estate Agents
The relationship between a builder and an agent can have its ups and downs; sometimes from the builder’s end and sometimes from the agent’s. But the bottom line is that the goals of both parties are quite similar. So, if they work for hand in hand, both of them will benefit in terms of profit and business prospects.