Unveiling the Secrets of Successful Builder Sales Brokerage
Suppose you want to become a builder sales agent or work with builders as a buyer’s agent. In that case, knowing the differences between working with new construction and traditional real estate is essential. You will also need to foster relationships with developers and builder teams.
This book takes complex marketing and business strategies and breaks them down into simple steps that can be applied to your building company. It also covers lead generation, mindful scaling and more.
Know Your Competition
Getting to know your competition is an essential step in succeeding in builder sales brokerage. Monitoring your competitors can reveal valuable intel about their customer support (or lack thereof) and the features that their target audience is drawn to.
It can also reveal gaps that you can fill with your unique offerings. This may include local knowledge, your network, marketing strategies or client service.
Know Your Buyers
Just like you would only go kayaking on your first try with expert guidance, new construction sales professionals should familiarize themselves with the contractual nuances of each builder. This will allow them to serve clients better and avoid misunderstandings.
Additionally, keeping in touch with prospects and potential buyers is important. This includes regular follow-up calls and marketing reports on trends. This provides consistency that can seal the deal.
Know Your Sellers
Purchasing new construction is often complex, so buyers need a broker to help them navigate the process. A reputable broker, like a New Home Sales Broker, should be familiar with the builder’s contract to explain terms and deadlines clearly to their clients.
This can help their clients avoid pitfalls arising from unfamiliarity with the process. It also helps ensure buyers get what they want in their homes.
Know Your Contracts
Typically, a buyer’s agent will negotiate terms and deadlines on behalf of their clients. This may include earnest money deposits, inspection dates and post-inspection repairs.
Brokers should familiarize themselves with a builder’s contract in advance and know the nuances of each builder’s policy. This will help them avoid confusion on the spot. Also, it will allow them to provide better service to their client.
Know Your Pricing Strategy
Choosing an effective pricing strategy can help you succeed in builder sales brokerage. Many businesses use a cost-plus pricing approach, adding up the costs of production and sale and then setting their prices accordingly.
Other strategies are more psychologically based and can help you appeal to customers’ willingness to pay. For example, bundling services can offer your customers a sense of value and convenience.
Know Your Marketing Strategy
Builders are looking for the best return on their investment in marketing dollars. They can gain the knowledge and expertise needed to generate results by associating with a broker.
Build your relationship with developers to stand out from the competition. A gift basket is a great example. This will show your builder clients you are a persistent and professional individual.
Know Your Accounting Strategy
Top builder sales brokerages provide ongoing training and motivation to ensure that their associates can keep up with the fast pace of this type of business. They also offer a variety of financial arrangements for their builders, including flat fees and commissions based on sale price. This allows them to attract clients and grow their business for financial success. They also provide excellent bookkeeping services for their teams.
Know Your Marketing Strategy
Successful builders rely on their brokers to market their new homes. Brokers often assist with market research, pricing strategies, absorption rates, and sales projections.
Builders want to know that you are consistent and dedicated. Follow up with them at least once a month by sending them marketing reports on trends in new construction. This will show that you care about their business.
Know Your Contracts
A successful builder sales broker understands the nuances of each builder’s contract. They keep a file of contracts from each builder so they can quickly re-familiarize themselves with the details of each agreement before a buyer meeting.
It also helps to know if the builders are flexible with their contract items. For example, if it’s a seller’s market, then the builder may be more willing to negotiate on certain things in a contract.
