Part 5- How Can Realtors Make Money With Custom Home Builders? Builders Are Investors Too.

www.regalclassichomes.com

 

Part 5- How Can Realtors Make Money With Custom Home Builders? Builders Are Investors Too. 

 

 

Custom Home Builders are real estate investors. Perhaps, not in the way that is customary to most Realtors but they invest in real estate too. Normally, Builders buy lots and build speculation homes when the market is hot and construct pre-sales for homebuyers but that’s not all that they do. They are looking for opportunities to make money in real estate where ever they can. 

Perhaps, it’s a choice lake front lot that's just come on the market or a tear down in a hot location? Maybe it's a parcel of land that can be developed into an exclusive new community? Custom Home Builders are opportunists. They are looking for investment opportunities. Sometimes it’s building a spec home. Other times, it's a fix and flip or a tear down. Frankly, they are usually not too particular as to the type of real estate, only the possibility to make some money. 

Present most Custom Builders with an investment possibility that makes sense and they will be all over it! That said, they are savvy investors and know a great deal when they see it. The deal has to pass the smell test. Don't try and sell them something that will produce a commission for you but end up hurting them when it's time to sell. Remember, the adage, “don’t kill the goose that laid the golden egg”! A Builder that makes money with you will be back for more. 

Custom Home Builders are constructing homes for upscale home buyers. Buyers that have deep pockets and have developed a relationship of trust with their home builder that was forged over a period of years while constructing their home. It the Custom Builder doesn't have the available financing to jump on a great real estate deal, they have past customers that do. 

As you can see, Custom Home Builders can be a great potential customers for Realtors. It may take some thinking outside the box but many times, that's what it takes to be successful Realtor. 

 

Have an awesome day! 

 

Mike 

 

www.regalclassichomes.com

Part 4- How Can Realtors Make Money With Custom Home Builders?

www.regalclassichomes.com

 

Part 4- How Can Realtors Make Money With Custom Home Builders?

 

Is there another way to make money when you have a Custom Home Builder on your team? You bet there is! 

Let’s say, you have been working with a home seller for the last 5 1/2 months and you just can't get a deal to stick on their home. The sellers are getting restless and you think “if I don't make something happen soon these owners are going to cancel my listing and hire another Realtor.” All your hard work is about to go down the drain. To your relief, you get another offer on the home and the inspection is all set for tomorrow. Great! 

Unfortunately, the home buyers inspector finds something wrong with the structure of the home and you need someone to provide an answer fast or the deal is going to fall through. The inspector says, it’s going to cost thousands and weeks to fix it. 

This is where having a Custom Home Building Buddy is going to pull your chestnuts out of the fire! You call up your Builder Buddy and he says, I’ll be right there! He knows you have sent him a few remodel leads and he owes you a favor. The Builder meets you at the home the same afternoon. He understands the issue immediately because he’s observed the exact problem on other homes and knows just the guy to fix it for you. 

Since the Builder knows you are in a tight situation with the closing looming he gets it fixed for you the next business day. He uses subcontractors everyday and has a lot of fire power in the market place. The sub’s want his continued business so they perform like “trained seals”. The issue gets fixed quickly and way under budget. You the Realtor looks like a hero and the closing proceeds as scheduled. 

Ka-Ching, another commission check hits your bank account!

One more example of team work that pays! The buyer on one of your listings just loves the sellers home but wants a home with an in-law suite. Unfortunately, you don't have any listings in the neighborhood the buyer wants but the lot looks big enough to accommodate an addition. You call up you Builder Buddy and he provides a deal saving estimate for you in 24 hours. That's a win-win for both of you.

 

 

Have an awesome day!

 

 

Mike 

 

www.regalclassichomes.com

Part 3- How Can Realtors Make Money With Custom Home Builders?

www.regalclassichomes.com

 

Part 3- How Can Realtors Make Money With Custom Home Builders?

 

Below is an example of a Realtor/Builder lot marketing program. Frankly, it's a starting point. It can be modified for your local market.

 

Example of a lot marketing program: 

 

• This program is free of charge to Seller and Realtor.
• Seller will not be charged a commission on the sale of their Lot.
• Realtor, to receive a 6 % commission on the sale of the “house and lot” package to a prospective Buyer. 
• Builder will provide a proposed home floor plan and elevation for property (see example below). The attached home can be duplicated with a standard pool package for $950,000 or $231 per SF including commission. 
• Builder will post on the lot a color rendering of a proposed home elevatIon.
• Builder will provide pricing for the home to be built on the Lot.
• Builder will plot home on the seller provided survey, along with building set backs and driveway layout (see below). 
• Builder & Realtor place each of their business signs on the lot.
• Listing agreement with Realtor- 6 months.
• Construction agreement with Builder for 6 months. If the lot is sold to a buyer that wants to use another Builder, then Seller to pay Builder $5,000 for marketing costs. 
• Realtor to list lot under “Vacant land” section in MLS. Realtor to list lot and home package in “Homes For Sale” section of MLS. 
• Realtor to showcase lot/home package on top National Home Search engines;  www.Realtor.com and www.Zillow.com
• Realtor & Builder to market home/lot package to existing client list and future prospects. If buyer terminates agreement, liable for Builder & Realtor marketing costs. 
• Realtor will provide virtual tour of prospective home showing lot, exterior elevation, floor plan etc. (see below). 
• Seller to maintain the lot by mowing the grass and keeping the property clear of debris.
• Seller to list property at “reasonable, just market value.
• Sellers to have a “pencil appraisal” performed prior to listing the property (which is a cheaper short version of a full blown paper appraisal typically done for lenders … but still gives value). This is at sellers, expense ($150-$200, but can be transferred to a buyer at closing if they accept that appraisal). 

 

Samples of the marketing plan:

 

 

 

 

 

 

 

 

Virtual Tour, to see a virtual tour of the Corsica Model click on the link below:

 

 

http://dht1.com/tour/11719/The-Corsica-12849-Magnolia-Pt.-Blvd

 

 

Read More- The Realtor, Builder Relationship

 

Have an awesome day!

 

Mike

 

 

 

www.regalclassichomes.com

 

Part 2- How Can Realtors Make Money With Custom Home Builders?

Www.regalclassichomes.com

 

Part 2- How Can Realtors Make Money With Custom Home Builders?

 

Selling Building Lots- One of the toughest sells for a Realtor in an empty lot. The problem, it's empty! It takes a buyer with imagination to purchase the property. Sellers give agents the listing on the lot and it just sits there, month after month. After months without an offer, the buyer pulls the listing and gives it to somebody else after lots of wasted effort. Sometimes, building lots sit for years. What if the Realtor could get some help from a Custom Builder to move this property and what would that look like? 

• A site plan.
• Potential house design with an elevation. 
• Specifications. 
• Package price.

A site Plan- can make all the difference when marketing the building lot. A drawing of a potential home positioned properly on the site within all the required building setbacks. Driveway, sidewalk and all the site issues addressed. Suddenly, a potential buyer has the “light bulb” go on in their head. They can start to see the bigger picture. I can’t tell you what a difference this makes. I see the sparkle in buyers eyes, all the time, once they see a house positioned on a survey. 

Potential House Design With Elevation- to further enlighten a potential buyer we need a plan design that meets their needs. Perhaps the property has an unusual shape like a slice of apple pie or it’s a corner lot. Issues that give most buyers the “heebie jeebies”. Not to worry, your Custom Builder partner can solve all these issues for you and more. Custom Builders have access to 1,000 of plans for all kinds of lot circumstances. Long and narrow, pie shape, corner lots, slopes like Mt. Everest, no problem. Builders deal with this stuff all the time, it’s what they do. Buyers that now have a site plan with a house positioned on it can see traffic flow, room placement and furniture locations. 

Specifications- the next step in the process is a set of specifications for the potential home. Tile roof, budget allowances for cabinets, appliances, landscaping, paver driveway, plumbing fixtures, pool and all the pieces and parts that go into a new home. After all, buyers want to see what they will be getting with this lot and home package. This empty lot is starting to look like something a potential buyer can visualize. 

Package Price- the last piece of the puzzle is the price. We have a lot, plan design and the home specified now we need a price. The Custom Builder can sit down in front of his computer and tell you exactly how much he would charge to build this home on that lot for potential buyers. Can you see how having a Custom Builder partner working with you on this lot sale is going to make moving this property a whole lot easier? 

The next part is telling buyers what you are offering. Perhaps a sign on the empty property with a colorful front elevation along with the floor plan will generate interest? In some states you can even place the lot and home package in MLS as a home for sale. Think creatively! I didn't say selling an empty lot was going to be easy but with a little imagination and the right Custom Builder buddy it's doable. You might even turn a commission on a $100,000 empty lot into one on a $600,000 home and lot package! Are you getting excited? 

Let’s think outside of the box. You can even use this concept on a “tear down”. That’s another tough one for buyers to envision. A dumpy old house on a property in a great location with lots of issue that have to be solved. The Realtor needs some help putting this deal together, a builder buddy. 

Ok, I get it, it's not what Realtors are normally used to doing. They usually, sell something tangible. Give a Realtor a house on a lot ready to sell and their all over it. They know just what to do. Something less tangible, not so much. But Realtors are deal makers, that’s what they do all day long, overcoming objections and charging the hill. This is just a little different. If it were easy, everyone would be doing it! 

So, perhaps this becomes a new niche for you, something that makes you’re an expert in a new niche? If you don't already have one, find a Custom Builder Buddy. Like you, somebody that isn't standing there with their hand out asking, what’s in this for me today? Instead, looking at a mutually beneficial relationship that is going to put money in both your pockets for years to come.

 

Have an awesome day!

 

Mike

 

www.regalclassichomes.com

 

 

Part 1- Realtor/Builder Relationship- How The Right Custom Builder Can Put Money In Your Pocket.

www.regalclassichomes.com

 

 

Part 1- Realtor/Builder Relationship- How The Right Custom Builder Can Put Money In Your Pocket. 

 

 

If you get Out of bed and ask, how can I put money in my pocket today, you’re not going to be successful in any business. I know it’s difficult to see past the financial demands of running a business and providing for your family but it’s not all about you, it’s about the customer. In fact, you might have a few different customers in your real estate business. Home Buyers, Sellers as well as Custom Home Builders. Try and think about your Builder Team Member as your customer. If you meet the customers needs the money will follow. 

The right Builder can put hundreds of thousands of commission dollars in your pocket over the decades. Actually, not only will you make money from your Builder customer but he’s going to tell all his Builder friends about you too! Let me provide an example of a Realtor/Builder, win-win. 

Builder Open House- is a perfect example how the right Custom Builder can put money in your pocket. Let’s say, your Builder Customer is constructing a pre-sale for a client that called him directly. You were not involved in the transaction at all and no commission is coming to you on this deal. Not to worry, all is not lost! Money is coming your way but you have to prime the pump first. 

The Builder is expecting to finish the home next month and wants to drum up additional customers that also want to build a home. The Realtor offers to host an open house for him and help put deals together. Pre-sale buyers are going to need a building lot and they also have an existing home to sell. The Realtor has an opportunity to meet neighbor's and others that are just curious to see what the new home looks like. Are you starting to get the picture? 

Additionally, the Realtor can negotiate a commission on any deal the Team puts together during and after the open house. As long as individual members don’t get greedy this open house is going to be fabulous for the Team! 

Parade OF Homes- Ok, now let’s take this to the next level. Suppose your Custom Builder Customer is busy building lots of new pre-sale homes and you are not involved with any of those transactions. Hang in there, payday is coming! The smart Custom Builder has already created a win-win with his pre-sale customer. They have agreed to enter their completed home in the yearly “Parade of Homes”in exchange for attractive pricing and additional home features.

The Builder paid a fee to enter the home in the event. The Parade of Homes generates hundreds of potential prospects. The Builder needs someone to staff the home with him and provide the same services as a normal open house but with lots more potential for Builder/Realtor business. 

I’ve seen Parade and Show home events with more than 1,000 visitors over 2 weekends. Sure, not all of the traffic is ready to buy or build but there is lots of potential. 

The key here is the right Builder/Realtor combination along with trust and big picture thinking! A relationship with a Custom Builder is something that has to be cultivated. If your walking around with “dollar signs ($$$$)” blocking your vision then you are going to miss out on a valuable business relationship. 

Call up a Custom Home Builder today and tell him your ready to help him make money!

 

Read More- Developing a Builder/Realtor Relationship

 

Read More- Are You Paying Your Realtor Too Much Commission?

 

Read More- Should I Ask My Realtors Advice Before Building A Custom Home?

 

 

Have an awesome day! 

 

Mike 

 

www.regalclassichomes.com

 

Custom Home Building- What You Don't Know About Septic Systems That Will Hurt You

www.regalclassichomes.com 

 

Custom Home Building- What You Don't Know About Septic Systems That Will Hurt You

 

 

You are out looking for a building lot and find the perfect one in an existing community. Your Realtor tells you the lot requires a septic tank and drain-field instead of a sewer connection. That’s not a problem as you've had a home in the past with a septic system and it was no issue at all. In fact, it saved you money over the monthly cost of County sewer and water fees. 

Driving through the community you notice some homes have “berms” or raised mounds in front of the homes and others do not. Your Realtor smartly advises the raised mounds are related to the septic drain-field but proper landscaping will mitigate any unsightly impact on the overall look of your home.There are a few empty lots in the community but you are interested in the one on the lake with the fabulous view. 

Your Realtor takes you to another community and shows you a lot with an old home already on it. Not to worry, the house is a “tear down” and can be removed inexpensively. In fact, the cost of the property is priced so attractively that even with the cost of removing the old house the building lot is still a deal! As you continue driving through the community you notice many older homes but few new ones. All of these homes are on septic systems so no problem. 

Continuing your search for a building lot, you look at other communities on your own and some with your Realtor too. You find another beautiful community with a fabulous lake and it even has some canals that homeowners can use that connect their property to that gorgeous lake. Wow, this is great! We’ve come up with three very attractive building lots. All of them are on septic systems and since homes were built on those lots there shouldn't be any issue with installing a septic system on one we select. 

Well, that’s not entirely true. The one overlooked factor in each of these instances is “changes in the County requirements for septic systems”. The truth is, every few years the requirements for designing and installing a septic tank and drain-field becomes more stringent. What was once acceptable may no long pass the County Code requirements. Just because neighboring homes have a septic system that functions without any homeowner noticeable issues does not mean you can build a home on the lot next door without any problems. 

In fact, based upon the size an design of your new Custom Home you may not be able to build on any of the building lots your Realtor presented or the increased cost of installing an on site sewer plant may be cost prohibitive. 

The missing ingredient in your building lot analysis is a Custom Home Builder. The right Builder will help guide you and your Realtor around the potential mine fields. 

Have an awesome day! 

 

Mike 

 

www.regalclassichomes.com

 

Custom Home Building- What Happened To The Soap Dish In The Shower?

www.regalclassichomes.com

 

Custom Home Building- What Happened To The Soap Dish In The Shower? 

 

For years, every shower had a soap dish and a niche for shampoo bottles. Now they are no longer in style? The clean and hygienic look is in. I guess all this has come into play along with anti bacterial soap? 

When I was a kid the entire family used the same bar of soap and none of us got seriously sick. Now we've become germaphobes and everyone is allergic to something, go figure? I guess drinking out of a hose is a sure way to die? 

The soap dish has been replaced by a shower caddy that includes everything in some cases and in others, just a simple dispensing system. All that said, not everyone is convinced the conversion is the best idea? Loosing the bar of soap can be expensive and has additional drawbacks.

 

 

Read More.....

 

Read More- Millenials turning away from bar soap, sales plunge

 

Have an awesome day!

 

Mike

 

www.regalclassichomes.com