Working as a real estate agent for a builder can provide a consistent and lucrative stream of business. It can also have some drawbacks, and in this podcast, we will discuss both the advantages and disadvantages of working with a builder in real estate. If you want to represent a builder, you must first establish a relationship with them. You do this by standing out, knowing their product, knowing what they want, and following up on a regular basis. Then, when your turn comes, be prepared to go above and above.

 

Do You Find It Tough To Gain An Advantage Over Other Real Estate Agents?

It can be difficult to break into the real estate industry as an agent at first. You must identify your company's cornerstones. These are the primary techniques you want to employ in order to create leads.

Working with developers is one pillar you may leverage. In this post, you'll learn how to work with builders to gain listings as a REALTOR®.

Working with builders has a number of advantages. These listings not only have the potential for several deals, but they can also bring a significant number of buyer leads to your listing inventory.

Let's delve further to uncover tactics that have assisted real estate brokers working for a builder in obtaining listings.

You can also use this movie to establish trust and gain exclusive agreements with some of your potential clients.

 

In Real Estate, What Is The LTV To CAC Equation?

The first stage in the customer acquisition calculation is the LTV to CAC ratio. Before investing time, money, and resources in client acquisition, you must first determine your customer acquisition costs (CAC) and customer lifetime value (LTV).

Here's a detailed explanation of the LTV:CAC equation.

The overall revenue generated by real estate agents from a single client or builder is referred to as the customer lifetime value (LTV). LTV is a component of the overall equation that assists a corporation in forecasting cash flow and profitability across various business scenarios.

To understand customer lifetime value (LTV), you must first comprehend customer acquisition cost (CAC). LTV is the total amount spent gaining customers, while CAC is the total amount spent obtaining those customers. As a result, the equation LTV:CAC is formed.

The LTV to CAC ratio is a critical indicator used by real estate sellers to calculate the ROI of their lead generation and marketing efforts.

The average SAAS company has an LTV to CAC ratio of 4, which means that for every $1 spent on customer acquisition, $4 is profit. However, real estate agents, particularly with builders, often have a larger LTV to CAC ratio. This is due to the fact that builder leads can result in many transactions.

For example, if a real estate agent spends $1,000 on marketing to create one seller lead and then closes a sale for $10,000 in fee, the agent's LTV to CAC ratio is 10:1.

This is when the math get fascinating! Even if you spent $10,000 on marketing and a builder offered you $50,000 in commissions over the length of your working relationship, you still have a 5:1 LTV:CAC.

This means that the real estate agent makes a lot of money for every dollar spent on obtaining new consumers.

 

As A REALTOR®, How Do You Market New Construction Homes?

When you wish to become a new construction REALTOR®, it can be difficult to get clients as an agent. The most crucial thing to do to gain an advantage over other agents is to attract the attention of a potential builder.

As a REALTOR®, investing in marketing new construction homes is one of the most efficient methods to gain new clients, sell more listings, and boost your listings for free.

Don't fall behind as other REALTORS® realize the rewards of promoting newly built properties. With the tactics listed above, you can ensure that builders are aware of your services (brand awareness) and that you stand out in a competitive industry.

 

1) Make A Landing Page

As a new construction real estate agent, you must have a system in place to obtain fresh listings from builders. To begin, develop a landing builder page on your website for each builder from whom you wish to obtain listings. It is a unique selling offer since it gives builders insight into your research work on themselves.

Include the following on your landing page:

• You have the option of creating a landing page for your builder. Your builder's introduction should include their name and logo; you can get this information from LinkedIn or their website.
• You can also offer some highlights of what distinguishes them at this stage.
• Put links at the bottom where interested prospects can plan a time using Calendly or other scheduling solutions.

 

2) Spam Emails

You've tried cold calling builders for real estate listings, but it's difficult to get through to busy folks.

Cold calling is a poor approach for real estate brokers because it is costly and produces no results. Cold emailing, on the other hand, is a different matter.

Cold emailing is a more effective technique to reach builders since you can send a customized message directly to their inboxes. You can trace how many times your email was opened and how long it was read to ensure that your message was received.

If you're still wondering how to work with a builder as a REALTOR® to gain listings, here are some cold email strategies to capture their attention:

Make sure your cold email subject lines are top-notch if you want to acquire more seller leads. Your email is more likely to be opened and read if it has a powerful, attention-grabbing subject line. Pro Tip: To enhance CTR (click through rate), use a first name merge in the subject line of the email.

[Builder's First & Last Name]> [Your Name] is one of my favorite cold email subject lines. This has a high conversion rate.

It's critical that your cold email is tailored and addresses the concerns of your prospects. This will allow you to establish trust and credibility with builders, which will lead to more listings. Consider what problems builders are now facing. Instead of offering a remedy, insert three pain points in point form.

"I'm hearing from contractors that they're searching for

greater profit margins on their sales

Possibilities for land acquisition

A competitive advantage over other builders"

When sending out a cold email, add a call to action (CTA) that urges your prospect to take the next step. In this scenario, my goal is for them to visit the landing page and book a call with you straight through your booking link.

Don't be disheartened if you don't receive a response. A builder is unlikely to convert based only on this stage. All we're attempting to do is establish a level of comfort.

 

3) Join A Social Media Account

There's no need to be disheartened if you don't receive a response. This is an 8-step procedure with plenty of touchpoints before we call it quits.

After a 2-hour break, reach out to your prospect builder on social media sites, particularly LinkedIn. This allows you to make the most of the time they spend discovering and reading your email, enhancing your chances of connection and conversion rates.

The temporal lag here is intentional. We want to show the builder that we are thinking about their company. Receiving an email followed by a LinkedIn or social request within 2 hours increases the likelihood that they will remember you.

 

4) Send A Follow-Up Email

We must continue to establish familiarity and brand awareness once this sequence has begun. Sending a follow-up email after your initial contact and social media connection is one way to accomplish this.

To receive listings from builders, send them a follow-up email two days after the initial cold email. However, as always, avoid pushy sales tactics. Instead, concentrate on developing relationships and offering useful information to aid in their decision-making process.

We send them back to the landing page in this email and mention that "even if they aren't looking for an agent, chatting for 5 minutes will create another connection in the marketplace and you can keep their real estate team honest."

 

5) Basket Of Gifts

Because your prospects are busy people with even busier schedules, you need a one-of-a-kind plan to demonstrate your (pleasant) persistence.

Before attempting to obtain listings from the builder, it is critical to establish a connection with them. After you've followed up with them by email, a gift basket is a great way to say thank you.

Your gift basket should contain a letter with your contact information so the builder can contact you. Furthermore, you should wait two days for a response from the builder before mailing the gift basket.

Pro Tip: Make sure the basket is from your area. Builders want to give back to the community, and including known local products in the basket communicates your willingness to do the same, making your present unique.

 

6) Boost Your Visibility

You won't get the listing if you're not visible. You must follow your prospect on social media and provide comments on their postings.

If you don't get a response after sending them the gift basket, try leaving a comment on one of their posts. This will demonstrate positive engagement between both parties and boost your conversion possibilities.

The restriction is that you cannot merely "like" or "react" to one of their posts; you must remark. This allows you to stand out on social media.

If they haven't posted in a while, we can add them to another social networking network.

 

7) Provide Value

You will then send another follow-up email. You'll start with market data this time. This email could also be an offer, such as free video marketing for any of their current listings, suggested changes to listing descriptions, or hosting an open house for them.

By providing this type of information and value to builders, you will be able to establish yourself as a trustworthy resource. Furthermore, you will be able to gain the trust of builders by demonstrating that you have their best interests at heart.

 

8) Boost Your Visibility

If there is no answer, you will try again on social media. We are once again commenting on one of their posts or adding them to another social media network.

 

9) Email Of Divorce

This is the last phase in the process. This will count as 8 touch points, which is the average amount of encounters required for conversion. As a result, you will now send a breakup email informing them that you will not contact them again in order to save their inbox.

The Loop Must Be Closed

Body:

Hello [First Name],

Although I believe in perseverance, I never want to be a nuisance. So, to avoid cluttering your mailbox, I'll close the loop now.

Please do not hesitate to contact us if you require anything in the future.

[Your Surname]

 

10) Electronic Newsletter

As a real estate agent, one of the most important things you can do is establish a lead database. If there has been any communication, add the builder to your email list, but make sure you follow anti-spam laws.

You might include a link to a form in your breakup email that will sign them up for your email newsletter. Furthermore, you must ensure that your newsletters are intriguing and engaging, with plenty of relevant information for your subscribers.

 

Follow The Three Ms For Every Builder

When builders are searching for a REALTOR® to work with, they look for the three Ms: margin, marketing, and magic.

Margin: Revenue generation is critical for any organization. The ability to produce money on each transaction is referred to as a margin. This is the number one priority for builders. When you bring up this issue, their ears perk up. However, don't rush to cut your commission. Instead, demonstrate the value you can add. When a builder provides several transitions, a lower charge makes it reasonable in many circumstances, but take this on a case-by-case basis.

Marketing is all about spreading the word and reaching out to potential customers. What are you willing to undertake in terms of marketing that other agents may overlook?

Finally, every builder requires an oomph element. It refers to that little something extra that helps them distinguish the property from the competition. The builder wishes to present the greatest product in the eyes of the consumer while simultaneously gaining an advantage over the competitors.

It is your responsibility as a REALTOR® to communicate all three of these things. By demonstrating your market experience and offering a competitive margin, you'll be able to convince builders that you're the ideal partner for their next project. Add a touch of magic, and you'll have them hooked.

You will discover how to become a builder's real estate agent in this real estate agent training podcast.