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ShareToo often we forget: Relationships are the true foundation of the building industry. Builder and real estate broker relationships, in particular, can be extremely beneficial to both parties. Typically, builders do not engage brokers unless they have a problem selling homes. Builders should regularly introduce their companies, sales teams, and broker policies and procedures to the broker community.
Builders' broker policies should be universal and consistent for the marketplace. Builders frequently pay different commissions from one community to the next. Builders should standardize and simplify commissions across all communities. If builder policies and commission programs are convoluted or gimmicky, brokers will become frustrated and look elsewhere for sales. Earning commissions should be fun, rewarding, and easy.
The following concepts demonstrate how to refine broker policies and procedures to encourage lucrative, long-term broker relationships:
1. Be consistent in all dealings with brokers. Builders frequently market their new home product to brokers only when they cannot sell their homes. Brokers want long-term relationships, not fair-weather friends. By maintaining a continuous relationship, brokers will regularly bring you qualified buyers for your existing inventory, as well as pre-sale buyers. Become brokers' new home expert, mentor, coach, and guide, and you will both benefit in the long run.
2. Never promise anything you cannot deliver. Be truthful. Brokers want to work with builders who have honor, trust and integrity along with the capability to construct a fine home. When an honest bond is forged between broker and builder, greater sales will result.
3. Never play a broker against a buyer or a buyer against a broker. Always set expectations at your first meeting so all parties know what to expect throughout the transaction. Repeatedly remind all parties about the expectations throughout the transaction. Eliminate surprises. Communicate with all parties and keep them apprised of all issues. Whenever you share details with the buyer and the broker is not present, please advise the broker with an email and carbon copy the buyer. Should the broker be present and not the buyer, communicate the same way.
Click here to discover the remaining tips for builder/broker relationships.
