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Builder Open Houses

By
Real Estate Agent with Keller Williams Realty ARE# 84291-0

A great way to generate leads is to volunteer to sit open house at <strong>builder</strong>s' models.  Locally the larger <strong>builder</strong>s have a shortage of salespeople.  We know of <strong>builder</strong> representatives that are responsible for 3 subdivisions.  That is 3 models with only 1 <strong>builder</strong> representative available to man it.  This opens up possiblilities for us general realtors.

There are many advantages to sitting open house for a <strong>builder</strong>.  It is a great chance to learn about the <strong>builder</strong>'s products and the subdivision that the model home is located.  You can farm the neighborhood/subdivision.  Trust me you will get a chance to personnaly meet the neighbors.  By putting each visitor (whether they are a neighbor or a potential buyer) in your database, you will be suprised how fast the numbers of your contacts grow.

Other advantages are that potential buyers may have to sell their current residence before they can purchase a new one.  This is a great opportunity to pick up listings.

Sometimes, the <strong>builder</strong> will turn to the realtor to help find new land for future developments.   

And the greatest benefit is that <strong>builder</strong>s normally offer higher commissions and/or bonuses to selling agents than those found for homes on the <strong>MLS</strong>.

If the <strong>builder</strong> product is not what the customer is looking for you have the opportunity to show the potential buyer other property.  Make sure that you don't sell against the <strong>builder</strong> and don't leave the model home to show non-builder property.  Make these types of appointments for other times when you are not scheduled to man the model center.

We have found that <strong>builder</strong>s need us and that we need them  It has been a very profitable relationship.

Posted by

 

Sue Riley
RE/MAXPrestige - Van Alstyne, TX
GRI

Our office has been working with a builder as they do not have a sales rep at one of their models.

I have sat it once and it has been difficult to find agents that want to do this.

However, one agent has already sold 3 homes this way so it must work,

Sue

Mar 29, 2007 01:47 PM
Laurie Mindnich
Centennial, CO
On site is a gold mine.  Not only does the person on site sell the homes, but if they are in resale shortly thereafter (or during) they have an entire farm area that they started.
Mar 29, 2007 02:08 PM
Steve Shaw
Keller Williams Realty - Mobile, AL
e-PRO, Gulf Region Properties Team

We have same problem here.  There is dead time to be sure.  But it is a good time to work on contacting your prospects (using your cell phone not the model phone), addressing your post cards, read your Realtor magazine, work on your continuing education classes, etc.

Its like everything else in our business, the rewards are there if you are persistant.

Mar 29, 2007 02:08 PM
Steve Dalton
219-465-8352 - Valparaiso, IN
Northwest Indiana Home Builder

I will be the first to say, I don't believe it.  In our market the realtors act like we're pulling their teeth to sit in an open house.  Now, I'll be more specific, even if they have a listing, they think open houses are beneath them.

If you are sitting in open houses to get leads, that aren't even listed, give me your airport name, I'd like to move you and your family here because I haven't seen any such thing in Northwest Indiana.

Mar 29, 2007 02:25 PM
Eric Laurenzo
ERIC LAURENZO-SECURED FINANCIAL - Blue Springs, MO
Secured Financial
I will tell you I totally agree with this, we do this with our mortgage company and you talk about leads you aren't kidding, so if there is an opportunity to team up with a mortgage company it is a great idea.  We have qualified them on the spot which the builders love but also you can find out if they are even qualified borrowers.  I know that I as loan officer do it about 2 to 3 times a month and we kind of rotatearound the office  no one wants to sit there every weekend.  Teamwork is what it is all about.
Mar 29, 2007 02:27 PM
Steve Dalton
219-465-8352 - Valparaiso, IN
Northwest Indiana Home Builder
Steve please post to Home Builders of America group too, I'd like to feature it there for some other builders in other markets to comment.  Frankly, I would like to move all of you to Northwest Indiana, because our realtors and lenders think that sitting in models is beneath their dignity.
Mar 29, 2007 02:36 PM
Steve Shaw
Keller Williams Realty - Mobile, AL
e-PRO, Gulf Region Properties Team

Steve,

Thanks for your thoughts.  I have posted the blog entry to Home Builders of America group,

Maybe I have been fortunate to have worked in Florida and Alabama where new home activity is abundant.  To be honest business has slowed down in past few months (not to the extent of other places in the country) but when business slows it is important to stick with activities that have worked in the past.  Builders will always have buyers (or tire kickers).  By working in the model center, these potential customers are coming to you.  You capture them and stay in contact until they do eventually buy something.

Mar 29, 2007 02:55 PM
Tom Sinclair
About the House - Home Inspections - Fairhope, AL
Steve,  Careful in sharing all of your secrets! Good stuff!
Mar 30, 2007 02:10 AM