Homebuilders and Agents Working Together- A Winning Combination?

The million dollar question, can homebuilders and agents work together?

There are many faux pas regarding home builders and agents not being able to work together, I have found the opposite to be true. In fact, I have found that listing a new custom spec house with a real estate agent allows the door to swing wide open for potential buyers to walk through your doors.

What are the misconceptions:

Misconception #1: Many home builders believe that listing a house with an agent cuts directly into profit margins and home buyers get a better deal by not dealing with an agent. 

Reality: Real estate agents provide valueable information to homebuyers regarding area comps and provide reasonable offers to builders keeping property values in the neighborhood up. Many times when buyers do not work with a real estate agent they make unreasonable offers and demands upon the home builder because they think they are saving money by not using a real estate agent. A real estate agent protects both the home builder and the home buyer.

Misconception #2: Home builders can hold their own open houses and getting valuable leads.

Reality: Home builders can host their own open houses and get leads, but most of the time tire kickers come through open houses and not "home buyers". There is nothing wrong with tire kickers, everyone has to start some where in the homebuying process. But, real estate agents are able to bring qualified home buyers that are currently in the market and looking for a new home which is critical when you need to sell the house.

Misconception #3: There is no relationship, just a sale.

Reality: Home builders can gain valuable insight, leads and sales by working with a real estate agent. When a home builder teams up and forms a business relationship with a real estate agent they are able to work together flawlessly. Builders can ask their agent what are you seeing a need for in the marketplace, what options and plans are buyers seeking, what is the new hot spot, etc... I have a great working relationship with my real estate agent. When I'm preparing to build a new spec home I give her the plans to review before proceeding. I have received great feedback that many times takes the plans back to the architect for a few changes. I've been told, "Don't paint dining rooms red-they're out!" Also, we always discuss the needs in price points in the market. This gives me a target to hit and helps her sell the home. When home builders and real estate agents work together, everybody wins-especially the customer! The customer gets a great home that has built-in resale value.