Being a real estate agent for a builder can provide a consistent and lucrative stream of work. The disadvantages of dealing with a builder in real estate will be discussed in this podcast along with its benefits. It will come down to developing a relationship with a builder if you want to represent them. You achieve this through standing out, being familiar with the brand, being aware of their needs, and continuously following up. Then, when it's your turn, be prepared to go above and above.
Do you think it's challenging to stand out from other real estate agents?
It might be difficult to get started as an agent in the real estate industry. You must decide what your company's cornerstones are. These are the major tactics you plan to employ in order to produce leads.
Working with developers is one of your pillars. This post will teach you 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 transactions, but they can also significantly increase the number of buyer leads you to receive from your listing inventory.
Let's delve further to learn tactics that real agents who work for builders have used to acquire listings.
You can use this movie to establish trust with some of the potential customers and win exclusive contracts.
It's crucial to understand the key terms used in real estate before continuing.
What In Real Estate Is The LTV To CAC Equation?
The first stage in the customer acquisition calculation is the LTV to CAC ratio. You must comprehend your customer acquisition costs (CAC) and client lifetime value (LTV) before investing time, money, and resources in gaining consumers.
The LTV: CAC equation is detailed in the following article.
The overall revenue made by real estate agents from a single customer or builder is known as the customer lifetime value (LTV). LTV is a component of the larger formula that assists a business in predicting its cash flow and profitability under various business situations.
You must first comprehend customer acquisition cost (CAC) in order to properly understand customer lifetime value (LTV). LTV is the total value of all of a client's past purchases, while CAC is the total cost of obtaining that customer. resulting in the formula LTV:CAC.
Real estate sellers frequently utilize the LTV to customer acquisition costs (CAC) ratio to determine the return on investment of their lead generation and marketing initiatives.
With an LTV to CAC ratio of 4, the average SAAS company makes $4 in profit for every $1 spent on customer acquisition. However, especially with builders, real estate brokers often have a larger LTV to CAC ratio. This is due to the possibility of numerous transactions from builder leads.
The real estate agent's LTV to CAC ratio, for instance, would be 10:1 if they spent $1,000 on marketing to create 1 seller lead and managed to land a builder who brought in $10,000 in commission.
The math is intriguing from this point on! You still have a healthy LTV: CAC of 5:1 even if you invested $10,000 in marketing and a builder was able to give you upwards of $50,000 in commissions throughout the life of your collaboration.
This shows that the real estate agent makes a lot of money for every dollar spent on bringing in new clients.
How do we, however, promote our services to home builders?
How A REALTOR® Can Market New Construction Homes
When you wish to become a new construction REALTOR®, it can be challenging for you as an agent to find clients. Getting a potential builder's attention is the key to gaining an advantage over other agents.
One of the best methods for a REALTOR® to attract new customers, sell more of their listings, and expand their list of free listings is to invest in marketing new construction houses.
Don't fall behind as other REALTORS® profit from their investment in promoting newly built properties. You may ensure that builders are aware of your services (brand awareness) and that you stand out in a crowded market by using the aforementioned tactics.
1) Create A Landing Page
Having a procedure in place to obtain fresh listings from builders is crucial for real estate agents who specialize in new construction. Making landing builder pages on your website for each builder you hope to receive listings from would be the ideal method to get started. Because it gives builders access to your self-research, it is a unique proposition to market your service.
2) Spam Emails
To obtain real estate listings from builders, you've tried cold calling, but it's challenging to get through to busy people.
Cold calling is a waste of time and money for real estate brokers since it doesn't work. Cold emailing, however, is another matter.
Reaching out to builders via cold email is more successful since you can send a customized message right to their inboxes. You can keep track of how frequently and for how long emails are read and viewed, ensuring that your message was received.
3) Establish A Connection Via Social Media
If you don't hear back, don't become disheartened. There are eight steps in this process, therefore there are many more touchpoints before we give up.
After sending out cold emails and taking a two-hour pause, connect with your prospect builder on social media, particularly LinkedIn. By making the most of the time they have spent discovering and reading your email, you may increase the likelihood that they will connect with you and the likelihood that they will convert.
Here, there is a deliberate lapse in time. We want to let the builder know that we are considering their company seriously. The likelihood that they will remember you increases if you send them an email, followed by a LinkedIn or social media request, within two hours.
4) Follow-Up Email
Once this cycle has started, we need to keep raising brand recognition and familiarity. Sending a follow-up email after your initial contact and social media connection is one approach to achieving this.
After two days after the first cold email, you must follow up with the builders in order to obtain listings. But as always, stay away from pushy sales techniques. Instead, concentrate on establishing connections and giving them useful information to aid in decision-making.
We are directing them back to the landing page in this email and noting 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."
You need a special approach to demonstrate your (pleasant) perseverance because your potential customers have hectic schedules and busy lives.
Before attempting to obtain listings from the builder, it's crucial to establish a rapport with them. After you've followed up with them by email, a gift basket is the perfect method to do it.
Your contact information should be written on a letter in your gift basket so the builder knows how to get in touch with you. It's also crucial to wait two days after the builder responds before mailing the gift basket.
Make sure the basket is from your area. Builders like to give back to the community, and including recognizable local goods in the basket communicates your want to do the same while also making your presentation stand out.
6) Make Yourself More Visible
You won't get the listing if you're not visible. You must leave comments on your prospect's posts and be active on the same social media network.
After sending them the gift basket and waiting for a response, consider leaving a comment on one of their blog entries. This will demonstrate positive communication between the parties and raise your conversion rate.
It's against the rules to merely "like" or "react" to one of their posts; comments are required instead. This makes you more distinctive on social media.
If they haven't posted in a while, we can also add them to another social media platform.
7) Offer Worth
You will then follow up with another email. You'll start this time with market data. If you like, you might include an offer in this email, such as a suggestion to alter one of their current listings' descriptions or to host an open house for them.
You may establish yourself as a trusted resource by providing builders with this kind of knowledge and value. By demonstrating to builders that you have their best interests at heart, you may also gain their trust.
8) Make Yourself More Visible
You will make another social media contact if there is no response. Once more, we can leave feedback on one of their postings or add them to a different social media platform.
9) Separation Email
The process comes to a close with this stage. This will be the eighth of the eight touches that are normally necessary for conversion. In order to save their inbox, you will now send a breakup email informing them that you won't contact them again.
Topic: Finishing The Loop
Hello, [First Name]
I want to be persistent, but I also don't want to disturb anyone. I'll now close the loop to stop your inbox from getting clogged.
Please get in touch if you ever need anything in the future.
10) Email Bulletin
You may create a database of leads, which is one of the most crucial things you can do as a real estate salesperson. If there has been communication, add the builder to your email list, but make sure you adhere to anti-spam regulations.
You might include a link to a form that will sign them up for your email newsletter in your breakup email. Additionally, you must make sure that your newsletters are captivating and full of content that will be helpful to your readers.
Stick To The Three Ms For Every Builder
The three Ms—margin, marketing, and magic—are always things that builders seek in a REALTOR® to partner with.
Margin: Making money is crucial for every company. The opportunity to make money from each transaction is referred to as a margin. This is the top priority for contractors. When you address this issue, their ears perk up. Do not, however, immediately cut your commission. Show off the value you can produce instead. When a builder supplies multiple transitions, it often makes sense to charge less, but you should treat each situation individually.
Marketing is all about spreading the word and interacting with potential customers. What marketing efforts are you prepared to make that other agents might forego?
Magic: Every builder needs a little more oomph. It alludes to that extra touch that makes a property stand out from the competition. In order to stand out from the competitors and appeal to consumers, the builder wants to offer the greatest product possible.
It is your responsibility as a REALTOR® to convey these three points. Builders will see that you're the ideal partner for their upcoming project if you can demonstrate your market expertise and offer a competitive margin. You can hook them with a little magic if you include it.