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Homebuilders and Agents Working Together- A Winning Combination?

By
Home Builder with J. Craig Homes

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.

Posted by

J Craig Homes home builder mobile alCraig Williams of J Craig Homes is a custom builder in Mobile, Alabama & Remodeling Contractor in Mobile, AL. When looking for home builders in Mobile AL Craig Williams builds a beautiful custom home and makes the home building process enjoyable at every step. Mobile AL "true" turn key builders, don't miss out visit www.jcraighomes.com 

Comments (7)

Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Craig:  I am guessing that the relationship between homebuilders and agents must very quite a bit from area to area.  In Fort Worth, agents and builders have been working together for longer than I can remember.  Has there been a bad history in Mobile ?  If there has been, that can be close to impossible to overcome... at least in the short-term.

May 25, 2008 02:01 PM
Steve Glose
Keller Williams Legacy - Orlando, FL
TRC, CIPS, 407-616-7286, Orlando Real Estate, Orla

Craig- We have seen some builders in our area tell Buyers that if they don't use a Realtor they will give them a better deal.

May 25, 2008 02:08 PM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

I encourage Agents to form builder relationships but I don't get that many referrals from it. Some not many.

May 25, 2008 02:48 PM
Craig Williams
J. Craig Homes - Mobile, AL

My advice to realtors when talking to a home builder about a potential listing is to talk about future sales also, not just the current house that can be listed. How can you help me grow my business? Can we grow each others business? Do you specialize in relocation assistance so you may bring possible customers to the table that want to build. Are you able to keep me informed about the needs and wants of current homebuyers?  Many times I have customers that want to build a new home but need to sell their home first, this is a perfect opportunity for homebuilders and agents to work togther for a win-win. Discuss how you can help the homebuilder with this scenario.

May 26, 2008 01:31 AM
Anonymous
Tony Zimmerman

Thank you for this post and replying to mine about greenwashing.  I wish builders in this area felt the same.  As an EcoBroker I have skills and training that can brand a builder and promote benefits that can help builders sell in a troubled market.  True green built and energy efficient homes allow buyers to afford more home and sellers to position their homes in a slow market.  My team mate and I have made every effort to help builders take advntage of this including greening our MLS so that appraisors will now put values to green features.  Have you considered moving to Traverse City, Michigan?  I would like your permission to repost this blog entery on my blog.  And thanks again!!!

Jun 20, 2008 03:13 PM
#5
Craig Williams
J. Craig Homes - Mobile, AL

I'm a warm weather guy, so I'll have to stick to Mobile, AL. Thanks and yes you can repost my blog entry on your blog

Jun 21, 2008 12:03 AM
Anonymous
Anna Breault

I guess the two can work perfectly well. Though both of them have teir own function I guess they can work as a team together.

Sep 28, 2011 01:46 PM
#7