Well we received our reprieve of the Federal Tax Credit. Thank goodness. Now New Home Builders need to figure out the best way to use this blessing in disguise and maximize its benefits. If they want to increase their sales they have to come up with ideas, STAT!
Being that you need to have contracts in by April 30th and closings by June 30th, the real work of utilizing every penny starts right away. New Home Builders and their Sales Teams must have new ideas, strategies and partnerships to be truly successful in our market right now.
During our recent declining market many Builders have established some great Resale Realtor relationships and it wasn’t easy. Realtors were skeptical and didn’t trust the Builders who now need their help. Realtors had stopped showing Builder properties because they didn’t feel respected or valued by Builders. But now things are different and if you have established these relationships, think about utilizing your realtor relationships as a source for use of the federal tax credit.
Why does it make sense to use Realtors to help you?
• Realtors usually have buyers who want to close quickly or within 60-90 days.
• Federal Tax Credit is for 1st time and repeat buyers; realtors have a larger percentage of all buyers.
• The resale market is inundated with foreclosures and short sales; the regular inventory is practically non-existent.
• Realtors want to put a deal together and want to get paid.
• Realtors are tired of dealing with all of the problems and delays associated with short sales and foreclosures and would rather work with a new home.
• Realtors sell the overwhelming majority of homes in our market.
• When you hire Realtors as your “Outside” Sales Representatives, your exposure and sales will climb to new heights because of the volume of Representatives you have working for you.
• Selling a new home is just easier and comes with fewer complications than a resale home.
Create and Reciprocate
Here are a few ideas to help you establish your new “Outside Sales Team” and reciprocate which creates a win win partnerships for all.
Buyers are always asking for references to list their homes so they can purchase a new home. It’s easy for Builders to give priority resale opportunities on contingencies, via referral to the Realtor partners. With these partnerships in place it’s easy for Realtors give you their first New Home opportunity showings to the Builders they partner with.
Having an easy Realtor Log in system
Have an online system where the Realtor can input all of their information online so they are considered “An Approved Builder-Realtor.” Then when the realtor sends a client over to view the homes, they simply can call ahead to the Agent to let them know their coming. They are “Approved” in advance so there is no need for them to accompany the buyer to the models if time doesn’t allow. The Builder has all pertinent information on file in advance, so payment to the Realtor becomes much easier and more routine.
Paying bonuses directly to Realtors for achieved goals
If a builder has these relationships set up, you can hold sales competitions and reward the Realtors who achieve your goals directly for performance. Some Builders pay bonuses of department store gift certificates as an added bonus to the regular commission for bringing a buyer who can close in 30 days or 60 days. Realtors just love this because it goes to them directly.
Creating Events to Create Partnerships with your “Outside Sales Team”
Come up with fun events Realtors can come to and feel like a part of your Sales Team. Here are a few ideas to get you started.
• Invite them to hold their weekly Sales Meetings in your models and provide some coffee and goodies for them. While there, Builders can do a presentation going over all the details of your homes, options and communities. Sign them up to be “Approved Realtors” making them fully aware of the federal tax credit details and bonuses involved. Create sales contests based on volume with your “Outside Sales Team” just as you would your “Inside Sales Team”.
• Federal Tax Credit Seminars where they can bring their buyers and learn the details of the program. Have a CPA there to address tax questions and a lender there to do prequalifications.
• Invite them to your “Inside Sales Meetings”.
• Hire a trainer to teach a continuing education seminar so they will get continuing education credits.
• Realtor-Buyer scavenger hunts”, where they have to find items in each model to win prizes.
Having these smart, win-win partnerships will help you utilize the federal tax credit, accelerate our comeback, our markets and your profit margins. Change your thought, take the time, invest the energy and build your “Outside Sales Team”, it will really be the difference you need and come in the form of more sales, STAT!