New Constructions a go or no?

Question

I'm a Realtor in Atlanta, GA looking to expand my network. I would like to build partner with real estate developers on new constructions or other residential projects.  I'm new to Atlanta, so apart from looking in the MLS for new constructs,  I'm not exactly sure if there are any networking groups out there and how to find them. For the agents who regularly work with developers, how did you establish those relationships and are there any networking groups in Atlanta that you'd recommend?

Robert Carmody · Answer

While I'm not from Atlanta, I have worked with builders and developers, especially when I was new and newer in the business. At the time I started selling real estate, there was a lot of new construction in our market, most of which was not in the MLS. There are usually apps or systems sold separately, or for an additional fee, from your MLS that are for new construction. Those will familiarize you with the inventory but probably not helpful at cultivating business with. Visit the developments, model homes or sales offices in person and during the week, during the early afternoon or times when they aren't busy with customers. The sales staff will be happy to talk to you, and it's a good way to learn about the new houses and neighborhood, and a good time to build a rapport with the sales staff. And, just like we have to do when we are trying to build a pipeline or list of contacts, find reasons to stay in touch with the same sales people, or the builder themselves in some cases.

The big builders have their own sales staff, who are employed by the builder and only sell for the builder, but they often have customers that have houses to sell, or sometimes customers that end up not buying from the builder and also aren't working with their own agent. There is referral opportunity there. The small builders that don't have their own sales staff don't have any interest in selling other houses, or aren't licensed to, but they also have customers with homes to sell, or have buyers that don't have an agent when having one might help close the sale that the builder hasn't been able to. There is referral opportunity there also. It's easy to think that the builder knows other agents already, and they do. However, it's the kind of business where they are connecting with agents constantly, and the moment they need one, it's going to be the one that is standing there or is fresh in their mind and easy to reach.

I ended up getting a referral from one of the builder's reps, and it was more than just one referral. It was 7 listings purchased by an investor who wanted to flip them for a quick profit, which investors were doing at the time. In addition to the 7 listings, I gained a presence in the area, which was immediately adjacent to a couple small communities of established homes, where I ended up listing a couple properties also. About 1 year after the first listing, I got a call at my office and the builder was closing out the subdivision, but had something like 11 or 12 spec homes to sell because the market had shifted, buyers had backed out, and they overbuilt inventory. The builder was coming to me as the "go to" agent for the area or subdivision, and I'm not sure if they knew that their sales rep's one referral only a year or 15 months earlier was what led to their phone call to me that day. Real estate contacts and connections build upon themselves, and when concentrated in one area, likely to much faster. Newer subdivisions also aren't farmed heavily, or at all, by other agents. While most owners of a brand new home completed today are not going to be in the market to sell today, it's a good time to start marketing and getting your name out to them because you will usually see some turnover as soon as the builder completes a subdivision, or within the first 2 years. There might be homeowners that bought there but ended up not liking the area, or job moved them elsewhere, or plans changed and they were waiting to try and sell until they weren't in direct competition with the developer anymore.

Sandra Kourouma · Answer

@Robert Carmody Thank you for you insights.  I did think that most builders already had relationship with agents. I realise now that, that's a limiting belief.  As you said, yes they do but it all depends on who comes into their mind first and who happens to be present in their time of need. I will start visiting more model homes and stopping by their offices to network.  It really is about the long game, what could come of it in the future. It's amazing that you got such a major deal out of a one time referal.