Step 1: Identify builders in your market area.
My recommendation is you identify 3 or 4 builders to partner with. If you select too many builders it will be difficult to maintain communications with the salesperson. Builder pricing, lot availability and incentives are constantly changing and you will want to be kept up-to-date to provide the most current information to your clients.
Step 2: Visit model homes.
This is an important step because builders build in different price ranges and designs. Some builders construct custom homes and work with a prospect from architectural drawings through product selection and construction. Some are semi-custom builders and will allow minor changes to the floor plan; while others are production builders and will allow no changes. Before you visit a model home decide which home builder type you want to partner with.
Step 3: Build rapport with the on-site salesperson.
Identify yourself and the reason for your visit. Be honest. Let the salesperson know that you want to include new home sales in your business plan and you want to learn more about their product, pricing, promotions and incentives.
Step 4: Ask the salesperson questions.
For a list of 10 questions read a recent Blog I wrote. It may seem like a lot of questions but each is important and will help you determine if this is a builder you want to partner with. Be sure to take notes and if you are not sure you understand, ask more questions until you do understand. And don’t worry about asking too many questions, the salesperson will be impressed with your thoroughness.
Step 5: Request a tour of the model home.
Ask the salespersons to highlight the features that are unique to the builder. This knowledge will provide much needed credibility with your clients … and credibility leads to sales.
Step 6: Request printed material.
Most builders will have at a minimum the following: brochures, option lists, financing program information, lot listing and community site map. Be sure to request a business card and ask to be placed on their email mailing list.
Step 7: Send a thank you note.
The purpose of this note is to demonstrate your professional follow-through. Remember that actions always speak louder than words. Everything you do will leave an impression … builders want to do business with the BEST.
Step 8: Create a binder for each builder you visit.
Include all printed material and answers to all your questions. Keep copies of all builder correspondence. Be sure to update binder with new price sheets, product, changes in lot listing, financing programs, etc.
Step 9: Phone the salesperson weekly or bi-monthly requesting pricing, product, new sales and financing program updates.
Remember out of sight is out of mind … and you want to be first in-mind when a home-to-sell referral is being decided.
Building a new home business takes time and consistent effort, so don’t be discouraged if your hard work doesn’t pay immediate rewards. Always remember to ask your clients, “Have you considered new?” If the answer is, “Maybe or we are not sure.” Then include model home visits on your tour schedule. Tell your client a little about the builder and let the salesperson do their job. If your client likes the home, stop selling and start writing.
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Bob Hafer has been a leader in the housing industry for 40 + years. His extensive experience gives him unparalleled insight into the mysteries and marvels of home buying and selling. His background includes new home success in consulting, management, administration, sales, marketing, merchandising, research and sales training. In 2009, to complement his new home experience, he earned his real estate license. In 2016 Bob co-founded www.homesusaalliance.com with Ben Caballero. Its mission is to connect Builders and Realtors through communication and education. He is currently the VP of Business Development for www.HomesUSA.com. Contact Bob at [email protected] or call him at 972-795-5926.