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ShareAre you a realtor who’s grown weary of losing out on multiple offers? Well, perhaps now is the ideal time to learn how much easier it is to sell new construction homes compared to pre-owned ones—particularly once you take into consideration that working with homebuilders eradicates many of the issues realtors struggle with in today’s ultra-competitive market.
Then there’s the fact that 41% of Americans prefer newly-built homes, as opposed to 21% who prefer pre-existing homes (given the costs are the same).
So, it’s safe to say that tapping into the builder market is an effective way for realtors to increase their bottom line. However, there are some critical differences that realtors need to be aware of about selling new construction versus existing homes. So without further ado, here are three tips on how you can forge successful relationships with builders and boost your bottom line.
There’s a Reason Why Builder Contracts are Different
The standard forms state bar and realtor associations create aren’t suitable for volume builders. Why? Well, builders construct homes using their own resources, which means they can suffer a huge loss if a buyer doesn’t close a sale.
Moreover, the homes constructed by builders vary based on the municipal area they’re built in. That means their contracts have to comply with restrictions imposed by local building codes, regulators, developers, lenders, city inspectors, and others.
It’s Not Possible To Set Specific Closing Dates
Unlike a readymade pre-owned home, the closing dates of a new construction home depend upon its completion, which itself is dependent on numerous variables that are not in control of the builder. These include accidents, labor availability, inspections, material deliveries, vandalism, and weather.
Realtors should not only understand these differences, but should educate their clients about them as well.
Establishing Mutual Trust Is Key
It’s important to understand and appreciate that builders, like you, are businesspeople. Make the effort of getting to know them and their business, and your dealings and interactions with them will go much smoother.
Pay a visit to the builder’s sales center and formally introduce yourself. View the homes and become familiar with the sales representatives. Inquire about their warranty, their sales process, and if they have a title company or a preferred lender.
The more trust and understanding there is in the relationship, the lower the chances of conflict, and the better the job you can do for your clients.
An extremely useful new homes search tool, Builders Update helps agents connect with home builders and form mutually-beneficial business partnerships. Sign up with us today and increase your bottom line.
