How Realtors Can Boost Business by Partnering With Builders
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How Realtors Can Boost Business by Partnering With Builders

Inventory is low. What are you doing to find new ways to keep your pipeline filled? I’m Josh Burdine, a broker associate with
Rockstar Realty in Fort Myers, Cape Coral, Florida. Let’s take five minutes to talk about how
to build a source of listings by working strategically with builders in your market. In 2014, after the foreclosure boom, I saw
inventory dwindle. At the time, some builders were starting to
build again. I saw this as an opportunity to serve customers
who were looking to build homes with custom features on private lots. I already had relationships with several small
builders, but many weren’t back in the marketplace yet, so I had to build new relationships. The medium-sized builders had the resources
and capital to build during the down market. Currently, about 20 percent of my business
comes from builders. Of that, half custom homes and the rest semi-custom
and tract homes. If you’re interested in partnering with
a builder, here are some strategies that might work for you: First, nothing can take the place of experience. I recommend you seek out custom builders who
have a portfolio of properties they can show you. The financial health of the company is critical. So, look for those builders who are completing
projects. Interview them and ask them for some of their
financial information which, by the way, is the same information they must provide banks
to get the capital to build for homeowners. It’s like proof of funds. Research a builders’ business background. Look at their license history, check to see
how long they’ve been in business. I believe in the trust but verify theory. I trust what my business partners says is
true, but then I verify the information. Its all part of your due diligence. Give the relationship time to gel. Get to know the person behind the business. This will go a long way toward building trust. I’m all about my customers and their needs. Not every customer can afford or wants to
build a custom or semi-custom home. So, I work with many builders and match my
customer’s needs and desires to the builder’s capabilities. I work with builders of all sizes, which is
easy now that the market has recovered. For example, if I have a first-time homebuyer
with limited funds, I’ll refer them to a tract home builder. That said, you must know the customer you
serve. Do you work almost exclusively with first-time
home buyers? If so, develop relationships with a reputable
tract home builder. Remember, every time you refer a customer
to a builder, your reputation is on the line. Finally, buyers interested in new home construction
will want to know the communities and subdivisions where your builder is operating. Is there move-in inventory available? If not, may the buyer select from different
floor plans and amenities? Are upgrades available and at what cost? Knowing these details will help you find the
perfect home for your new home buyer. And a happy customer gives the best referrals!

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