How To Become a Builder's Real Estate Agent
Representing Builders in New Construction Real Estate Deals
Working with a builder as a real estate agent can be a steady stream of business and it can be lucrative. It can also have some downsides and in this podcast, we will explore both the pros and cons to working with a builder in real estate. If you want to represent a builder, then it will come down to building a relationship with them. You do this through standing out, knowing their product, knowing what they want, and constantly following up. Then, when your moment comes, be ready to over deliver.
In this real estate agent training podcast, you will learn how to become a builder’s real estate agent.
[00:00:00] Hello and welcome to Rev Real Estate School. The podcast with quick tips and actionable advice to help you sell more real estate in today's world. And now your host Michael Montgomery.
[00:00:11] Hello and welcome back to Rev Real Estate School. I'm your host Michael Montgomery. Today we're talking about an exciting topic we're talking about how you can land builders and start representing them with their new construction products.
[00:00:26] This is something that's very enticing to a lot of real estate agents new growing experienced working with a builder does and can seem like it's just an endless source of business and it definitely can be. But it can also have some hurdles. So in this episode we're going to first talk about the pros and cons of working with new construction and then how you can go about landing your first builder. Let's jump into the pros and cons.
[00:00:56] First off pros. They seem pretty obvious. It's a steady stream of business. The other pro is you can also get a lot of buyers when you're representing new construction products if they're looking on the MLS for properties and your listing comes up and you're representing the developer or the builder. Then of course you could also end up landing yourself a few buyers. Another pro is builders know builders. So once you start to get your foot in the door and you start doing a great job for certain builders they talk and it's usually a pretty small community even if you're in a big center. There is still a pretty small community of developers doing the majority of the business so they end up talking and if you're doing a great job you can end up getting more and more business from it.
[00:01:40] Now let's jump into a few of the cons and these are oftentimes overlooked because it just seems so appealing to represent a builder and to have that continuous source of business. But it doesn't always work that way. Some developers have very strict schedules on how often you have to be doing open houses. The other thing is oftentimes they're not paying the same full commission amount they can. That's not to say they won't. But oftentimes they are looking for some level of a discount because what thereafter is return on investment. I actually know some agents that don't even get paid when working with their developers what they do though is they treat this as an opportunity like we said in order to give buyers.
[00:02:23] OK. So you're nodding your head you're saying yeah I get it totally pros and cons. Got it. Now how do I go about landing a developer? Let's jump into this. First off, it all comes down to a relationship. It's like anything else in our business. It will all come down to the relationship they're able to build with the developer. Now you probably do this but how do you go about starting to build a relationship with a developer who's probably receiving weekly if not daily e-mails male phone calls from other agents that are trying to represent them. What you need to do is you have to build your relationship in a little bit of a different way. And you also have to play the long term game. This is not going to be something that you're going to do overnight but over the course of time it can end up being very very lucrative.
[00:03:07] So first things first you're going to have to make a list of the developers and their mailing addresses. This is the very first thing you need to know who they are. You need to know their product we're going to get into knowing their product. But first off you just need to know who they are from there. You do want to start building the relationship but you have to start by standing out.
[00:03:25] You can't just send a normal e-mail a normal phone call or a normal letter in the mail. 99 Out of 100 that's going right into the garbage. You have to stand out and I'd recommend doing this right off the bat is the first thing that you do you should send them something in the mail that will stand out. You need to be memorable right from the beginning. Now you want to choose something that matches your brand but also something that will be a little bit different. You can even go to Pinterest and type in "pop by gifts for real estate" and there's going to be a ton of different options there. A builder that I recently met with said that the most memorable thing that they received from an agent was a it was a pill bottle and in the pill bottle there were just skittles and basically on the pill bottle that said if your sales are stressing you out take a few of these and call me. I thought it was absolutely genius. So this is a bigger builder that said that that was one of the most creative things that he saw. Then you deliver your pop by gift whether you do it in person or by mail that doesn't really matter especially if they don't know you right now. Just make sure that the first thing that you send is memorable.
[00:04:25] From there, you're going to get to know the builder's products you need to know their models you need to know what it is that they do you need to go their sales centers. Now if you're serious about trying to land a builder developer then I'd recommend sending out two to three of these pop by gifts a week and then also focusing on learning their products. Are those two or three builder developers that week. Reason being is you're going to follow up after you've sent your pop by gift. You're going to follow up by phone e-mail that doesn't really matter either to be honest at this point all you really want to do is follow up make sure that they received it. Now you know their product you've sent them something that really makes you stand out.
[00:05:02] Next, you have to understand what they want. What a developer wants is they want buyers and they want a return on investment so you want to keep that mindset and tailor your conversation towards this. You do not want to tailor the conversation towards you you want to make it about them and how you can find them buyers and how you can get them the highest return on investment.
[00:05:23] So after that you've sent them the drop by you followed up with them you know their products you know what they're looking for now is where the rubber meets the road. This is where the consistency comes in. You're going to follow up and I'd recommend following up every single month. You're going to handle over them a market report on what's happening in new construction from the MLS. You're going to give them a market report on the areas that they are working in every single month. I recommend you take one day and you go hand deliver it if you can't hand deliver it send it in the mail. That's totally fine. But ideally your hand delivering it. So you've made a name for yourself. You've stood out from the start and now what you're showing is you're showing a level of consistency. And this is extremely important from a builder's perspective. They want to make sure that you are consistent and they're probably already working with an agent in your market you just want to be the one that is next in line for when that opening does come up or when they need somebody else to come and help out. Just like working with leads and working with your database you want to stay top of mind but with a builder and developer you do want to make it more about the market and what's happening and you need to show that level of consistency. That in itself is so powerful is just showing up over and over and over again and you will end up landing one.
[00:06:41] Finally it's going to be the pitch. So when you hear about a new project and acquisition they made or if they're starting a new project or even the current projects that they're working on you want to reach out to them and see if they need any help. You want to continue to show that yes you are consistent and you're delivering them value every single month by way of a market report but you're also going out there and you're hunting for the business. So you have to ask them for the business as well off the start. There's a very good chance that the answer will be no and that's totally fine continue to deliver them the consistent value over and over again and as you start to see more of their projects come up reach out again and ask them again continue this process over and over for as long as it takes and you will eventually land a builder. Now it can take some time but maybe after a year or so you get a maybe out of them instead of a no. This is your time where now you can go in you can present to them you can let them know what you're willing to do and ask them to take on even a small amount of their inventory take out one of their properties and then over deliver like crazy over deliver if they want a report every single two weeks make sure you send one every week if they want an open house once a month. Make sure you're doing it every two weeks. So over deliver and you will continue to see that business flow your way. So to recap right off the bat you need to get a pop by gift that really helps you stand out. You then have to follow up know their product and know what the builder or a developer is looking for which is Yuji buyers and are why then you need to consistently follow up with monthly market reports on what's happening. You can even insert more pop by gifts if you're doing those for your clients at certain times of the year too. But you want to show consistency that is very important. And then when the time comes and you see a project come up or you hear about an acquisition make sure you reach out to them congratulate them and ask if they need help with that project when they do say yes. Make sure that you over deliver like crazy so you can continue that relationship. That is how you land a developer or a great builder in new construction. Thank you so much for listing this episode. I really appreciate it. Remember you can ask a top producer anything all you have to do is write and review the show. Head over our Web site Rev real estate school dot com. Let us know where you did that. And a top producer gives you a call. Thanks again for listening and we'll see you in the next lesson.
[00:09:06] This episode of Rev real estate school has come to a close. Thank you for tuning in. We'll see you back here. Lesson.