How Builders Partner with Real Estate Professionals

Technically speaking, builders build houses and condos, but getting people into those homes does not stop there. There comes a time when real estate professionals get in on the action, and there are advantages to having builders and real estate people talking together. This is where people called “builders agents” come in. Also known as “onsite agents”, they’re an essential part of the building process because without them, builders wouldn’t be able to sell their developments nearly as effectively.

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Some builders shy away from partnering with builder’s agents because they think agents fees will decrease their profits, but that’s not the case with onsite agents that are effective.  

What do Builder’s Agents Do?

A builder’s agent works closely with real estate developers to market and sell their homes or commercial properties. They handle real estate transactions similarly to other agents, but they work exclusively for builders.

For example, a regular real estate agent will help clients sell new or used real estate in Florida, whereas a builder’s agent will help builders sell a project even before it’s finished. Both agents need similar skills to sell, but a builder’s agent needs to sell something that doesn’t actually exist yet. This can present some challenges, but a great agent can help their clients envision what’s being offered to them. Therefore, builder agents need to study pre-construction real estate, so they can manage their clients’ expectations about timelines and project budgets.

Why are Builder’s Agents Useful?

Since new construction can take a long time to complete, builder’s agents are hired to build relationships with clients and advocate for the construction company. They’re there to communicate what the builder does, how they do it, and why clients should choose them over other similar builders. Commercial real estate software such as data analytics tools by Northspyre can help automate most of the project management process, but they can’t do everything for you. Home and commercial real estate builders need an incredible team to support them during every project stage.

There are several reasons for builders to partner with agents, including the following:

Boost Revenue/ROI: Since buyer’s agents get a commission for selling pre-built homes/properties, they’re encouraged to sell. Plus, they have the expertise to sell to the right real estate market or investors, which are skills most builders don’t have. 

Increased Number of Listings: Builder’s agents have connections that most builders, especially if they’re new on the scene, don’t have. Agents are able to advertise a builder’s listings on websites they don’t have access to, increasing their reach.

Better Post-Sale Relationships: The relationship between a builder and agent doesn’t end after the transaction finishes. If both parties nurture this relationship, they can help each other succeed. If the builder’s agent trusts the builder, so will their clients. 

Builders can benefit from a knowledgeable agent to act as a dedicated point of contact with clients. This allows builders to focus on their projects instead of marketing and selling them simultaneously. 

How Agents Partner With Builders

The relationship between a builder and agent should be a win-win situation. Real estate agents and builders are supposed to work together and create effective partnerships and this is becoming more and more common. Although builders do approach agents for their services, it’s often up to the agent to convince builders of their value. Builders often ask for referrals from other builders or plan open-house events to find qualified agents. This presents an opportunity for agents to create connections.

If the agent hasn’t connected with other builders in the area, they attend open houses and speak with potential clients. The agent should look around their demonstrations, ask for a tour of the property, ask informed questions, and search for answers that may help a builder’s clients.

The All-Important Co-Op Policy

A co-op policy is a set of rules or policies that builders need agents to follow before partnering with them. These rules could include but aren’t limited to communication terms, how they want agents to start/finish transactions, and how to market their projects to potential customers. If an agent fails to follow these terms, it will cause conflict between them and the builder. With that said, good builder’s agents always read these terms and consider if they interfere with their work before signing any contracts. That way, all parties get what they want out of the relationship. 

Let Builders Present Uninterrupted 

Even with a builder’s agent at work, builders themselves often get in on the sales process. This is as it should be because homebuyers want some kind of connection with the people actually doing the building. Good agents show respect to builders by allowing them to conduct presentations uninterrupted. If a client constantly sees an agent butting in or correcting the builder, they may lose confidence in them. Builders have to have the chance to show their training and knowledge to prove they’re the right company for the job.

All this said, agents can play a supportive role with the builder’s permission during presentations. They can elaborate on certain points or answer questions about the real estate side of things. In the end, a builder’s agent’s role is to bring customers to the presentation, so the builder can handle the rest.