A new home sales division is a great opportunity — a residual revenue opportunity with self-perpetuating chances to sell new homes!
Working with a builder can provide you with a steady source of homes to sell, year after year after year. Builder sales are not about the listing business. Rather, a relationship is established with a builder or developer that is long-lasting, and produces “perpetual sales” over many years.
Markets go up and down. A well-functioning, high-performing new home sales division is well-positioned to be hired by financial institutions with troubled residential developer and builder “workouts.” Recession-proof your business!
Alter your normal thinking:
Know the home builder’s break-even point – the figure that represents the number of closings needed until fixed overhead is covered…it’s an essential revenue milestone. Get there faster by creating energy and velocity and build your sales compensation models on reaching that break-even point sooner rather than later so higher profit levels are achieved.
Change your Persona:
Normally LISTINGS are your lifeblood. With builders, SALES are your lifeblood.
Usually you have a varied focus on multiple homes – you can sell anything, to anybody, anywhere. With a builder you need to have a laser-like focus on selling their homes.
Typically you sell a great range of inventory based on your client’s needs. With a builder you can only sell their product and you are focused on specific locations, product and value.
Often you work with a flexible pace –fewer buyers over a longer period of time, moving around to various homes, or with a very limited period of time in an open house situation. With a builder you work with many potential buyers over short periods, and staffing the model or office is a must – you operate retail hours not flex hours.
It’s common to try to get buyers to make a proposal to buy a home – “to put in an offer to buy.” But with a builder you must get full price – prompting value building presentations.
And finally remember:
Whether to outsource sales operations to a Realtor is a question that arises for custom and small-volume builders that aren’t big enough to develop their own sales team, as well as for mid-size builders that are big enough but don’t think their volume justifies working with an agent.
Make your offer to the builder just a little bit better than what it might cost them to build their own sales operations.
Selling new homes versus selling existing homes is a different animal. Develop your sales associates’ new home sales skills with the International New Home Sales Specialists.
I-NHSS offers a complete system to build, manage and grow an extraordinary home builder-focused brokerage operation with local, regional, country and international outreach.