If you want to grow your clientele as a real estate agent, now is a great time to learn the inner workings of selling new homes. Working directly with a home builder removes a number of challenges buyer’s agents face in an active real estate market.
Breaking into the builder market will boost your bottom line, but before you dive in, there are differences to understand between selling existing versus new homes. You’ll have a major advantage over other agents once you master the differences between the two and work cohesively with home builders in your market.
Home Builder Advantages
Home builders create their own inventory, so when numbers are low, they can simply build. This is a major advantage for real estate agents, as builders are creating ways for you to increase your profitability, especially in a market where homeowners are holding tight to existing homes.
Secondly, builders aren’t emotional about their product. They want to sell homes as badly as you, so you don’t have to fight the emotional element of a homeowner who’s hesitant to sell or attached to memories of the property.
Here are five things to understand to make working with builders work for you:
- Contracts Are Different For Builders
The forms from Realtor associations aren’t designed for mass home builders. Builders must follow the regulations and guidelines of the different municipalities wherever they build, so their contracts must comply with those covenants.
- Closing Dates Are Fluid
A number of factors – weather, inspections, material availability – can delay the home building process. For this reason, it’s nearly impossible to have an exact closing date as it is with existing homes. When you work with buyers of a new build, it’s good to warn them of the fluid date.
- Partnership Creates Potential
Learn to trust a home builder by working closely with the team. From the builder reps to the construction lead, when you understand the process of a home builder, you’ll be a better service to your clients and will help avoid any misunderstandings. Visit the builder’s model homes or sales office to introduce yourself and ask about their building and selling process.
- Allow The Builder Rep To Work
The builder rep does many of the same tasks as an agent, so allowing the rep to finish his job will create a much smoother buying process. Avoid imposing your process on the builder’s team.
- Builders Aren’t Trying To Battle
A builder is familiar with the building materials, warranties, upgrades and neighborhood layout. Use this knowledge to your advantage and relay the pertinent info to your buyers.
You’re representing your client in what will likely be the biggest purchase of their life, so working with the builder to understand the smoothest way to place a buyer in a new build home will make the home buying process as pleasant as possible.
Working with builders can be a great way to differentiate yourself from what other agents in the market offer.
- Contracts Are Different For Builders
The forms from Realtor associations aren’t designed for mass home builders. Builders must follow the regulations and guidelines of the different municipalities wherever they build, so their contracts must comply with those covenants.
- Closing Dates Are Fluid
A number of factors – weather, inspections, material availability – can delay the home building process. For this reason, it’s nearly impossible to have an exact closing date as it is with existing homes. When you work with buyers of a new build, it’s good to warn them of the fluid date.
- Partnership Creates Potential
Learn to trust a home builder by working closely with the team. From the builder reps to the construction lead, when you understand the process of a home builder, you’ll be a better service to your clients and will help avoid any misunderstandings. Visit the builder’s model homes or sales office to introduce yourself and ask about their building and selling process.
- Allow The Builder Rep To Work
The builder rep does many of the same tasks as an agent, so allowing the rep to finish his job will create a much smoother buying process. Avoid imposing your process on the builder’s team.
- Builders Aren’t Trying To Battle
A builder is familiar with the building materials, warranties, upgrades and neighborhood layout. Use this knowledge to your advantage and relay the pertinent info to your buyers.
You’re representing your client in what will likely be the biggest purchase of their life, so working with the builder to understand the smoothest way to place a buyer in a new build home will make the home buying process as pleasant as possible.
Working with builders can be a great way to differentiate yourself from what other agents in the market offer.
