Each and every day, one of approximately 5000+ residential real estate agents in a local MLS (Multiple Listing Service) market area makes decisions on what homes to show their client. New Homebuilders and their in-house sales representatives recognize the value and importance of working with their local realtor and work hard on maintaining good relationships and best practices to keep realtors engaged and advocating for their business.
Realtor Represented Clients Increase
Because of the increased internet and digital marketing presence that continues to grow stronger each and every day, realtor represented clients have grown substantially and now account for nearly 40-50 percent of all homebuilder sales transactions. In most cases, this realtor driven traffic has some of the highest conversion rates in the industry. It is not unusual for realtor traffic to convert between 25-50 percent of their sales usually within one to two visits to the builder’s model home. About ten percent of realtors will sell one or more new homes with a particular builder over the course of a year, and 83 percent of those realtors and their clients start their search for a builder and their homes via their local MLS.
The Role of a Realtor in a New Home Build
Given these facts, what is the role of a realtor that may be representing you in a new home building transaction? What is the best way for the on-site builder’s representative and the client’s realtor to work together to make a smooth and enjoyable transaction for their mutual client?
First, one must know that the realtor has brought the client to a builder due to their reputation and respect in their local community. Most times, the builder asks only that the realtor brings their client to the model home or community sales center on their initial visit and register that client with the builder’s sales representative. For that reason, realtors place much trust in the builders that they are working with as once they have performed that step, will turn their client over to the builder’s sales representative for future visits, sales presentations and ultimately purchasing and entering into a contract to build a new home.
Once that relationship is forged, the builder’s rep will take on the role of “managing” the new home build with the client. While many realtors have had training and experience with new homes and builders offerings, the builder’s sales representative has a far more extensive knowledge and extensive training of their company policies. This knowledge also includes change orders, blueprint review, construction guidelines and overall documentation. This information will be imperative to maintain a smooth transaction with the client in the several months that it will take to build and complete their new home.
Realtor and Home Builder
The relationship between the builder’s representative and their customer’s realtor should have solid communication throughout the process as the realtor is also managing many transactions at any given time. The builder’s rep needs to touch base with the realtor on critical updates such as loan approval, first dig, construction progress and estimated closing. Many times, the realtor that brought the client to the builder will be handling the sale of the client’s existing home that will be offered for sale, marketed and sold in a time frame that coincides with the completion of their new home build.
With the emergence and continued strength of major and powerful real estate search engines on the internet, realtor traffic to builder’s model homes has increased significantly. Home builders and their representatives will work hard to reach out to their local realtor offices and communities and establish good relationships and practices that make realtors comfortable in advocating and recommending a local home builder that they feel comfortable directing their clients to build with. A successful transaction will result in continued referrals of clients to a particular home builder as well as spread positive reviews to fellow realtors and clients.
Let Petros Homes Help!
Petros Homes has maintained exceptional relationships with their local realtor community for over three decades in Northeast Ohio. Information about our policies and registration can be found on our company website on our home page. For questions about building a new home or selecting one of our move-in-ready homes, feel free to contact us.