Custom Home Building Tips! : Part 3- How Can Realtors Make Money With Custom Home Builders?

Wednesday, September 21, 2016

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).