Have you ever wondered how top real estate agents partner with builders and get opportunities to sell their inventory? Whether you’re a new real estate agent or a seasoned Realtor®, forging partnerships with new home builders can take your business to the next level. So, if you haven’t considered it already, think about partnering with builders and read this article to find tips for a successful strategy.
Even agents who mostly represent buyers understand that the top professionals in the industry are those with a steady stream of listings. When you become a builder’s real estate agent, you have a great source of immediate and ongoing listings.
Becoming a successful builder’s real estate agent means that you’ll have to develop and nurture strong relationships with ideally more than one builder. This is best done by knowing the builders’ products and what they want, and continually following up to deliver – and even overdeliver.
Here are some quick tips on becoming a builder’s real estate agent and enjoying a lucrative source of listings:
Landing Your First Builder
It can be both easy and hard to land your first builder. It all comes down to building relationships. So, if you’re doing this successfully in other areas of your business, you have a great shot at becoming a top builders agent.
You’ll need to work regularly on getting to know developers, and learning about their products and goals. Keep in mind that most developers are probably receiving daily emails from other agents already. This means that you’ll need to build your relationship with builders a different way.
Plan to play the long game. Make a list of developers that you’d like to build relationships with. Note their mailing addresses. Mail them something that stands out and that is memorable. Choose a marketing message that is on brand but one that is more than just a standard letter. Perhaps send a small ‘gift’ or useful item with your name and contact number on it.
After your initial contact, really dive into the builder’s product and learn it – and then call the builder to introduce yourself. You should have already familiarized yourself with the builder’s models and you must have visited their sales center to learn everything you can about their homes.
If you’re really serious about becoming a builder’s real estate agent, you can send the developers weekly marketing messages or gifts, each of which should be followed by a phone call to see how their sales are going.
Follow-up calls should also probe to find out what the developer wants. Of course they desire buyers, but what return on their investment are they looking for? Tailor your conversation to the builder goals and how you can help them get the highest ROI.
Successful builder’s agents know that consistency is what seals partnerships and wins contracts. You will need to follow up with potential developer partners at least once a month. Send them marketing reports on trends on new construction. Hand deliver it if you can, but at least send it in the mail instead of opting for an email.
Showing consistency is extremely important to builders. They want to make sure you’re consistent and dedicated. Chances are, they’re already working with a real estate agent, but you want to be next in line for a listing when the opportunity opens up.
Finally, continue to do your research on the builder’s upcoming projects. When you see a new development in the works, reach out to see if the builder needs any help with sales. You’ll have to ask them for the business in most cases, but they should already know you and your work ethic if you’ve been marketing yourself successfully.
If the builders’ answers to your direct request for a partnership are declined, don’t take this as an end to the relationship. Keep showing the builders that you’re professional and committed, and that you’re the right agent for future jobs.
The Pros of Becoming a Builder’s Real Estate Agent
The pros of becoming a builder’s agent may seem obvious. You’ll probably enjoy a steady stream of business from the new home listings, and you might get a substantial quantity of buyers who end up looking at other properties with you.
Keep in mind that many builder’s will ask you to agree to no-compete clauses in contracts, which may prohibit you from showing other new construction projects to prospective buyers. A builder’s real estate agent could get the opportunity to work with other builders due to referrals, however. Builder’s typically know other builders and many of them will prefer working with someone who has a great reputation selling other new homes.
Cons – Should You Become a Builder’s Agent?
The cons of becoming a builder’s agent are often overlooked, simply because representing a builder is so appealing. However, keep in mind that working with builders often comes with long hours, strict schedules and commitments to holding frequent open houses. Often, builders don’t pay commissions that are as high as those offered on the MLS, which can be discouraging.
Landing a builder in a new construction project will mean you will have to continually overdeliver, starting from the initial point of contact. If this approach to real estate sounds appealing to you, and you’re ready to work hard for a potentially lucrative source of income, becoming a builder’s real estate agent could the next best path for you and your business.