Powerfact: Builders can be a tremendous niche — IF you know how to capture their attention!
By Darryl Davis, CSP
When people think of real estate agents, the image that comes to mind is usually the friendly face behind the purchase or sale of a pre-existing residence. What most don’t think about is the real estate transactions that occur with builders. Whether or not you have a background in construction or a previous history with builders, this niche can be a great choice to focus on as a real estate professional.
Where to Start
The best place to begin marketing yourself to builders is to make a list of the small to medium-sized builders in your area. The reasoning behind networking and marketing to them rather than the large builders is because most of the smaller companies have the disadvantage of having to work on their sites and manage all their projects, and are too busy to start thinking about locating LAND for the next one. Instead of prospecting to builders, you are actually going to prospect for land. Once you have a plot of land, you can start approaching builders. That is how you are going to win builders over.
Prospecting for Land
So, how do you go about prospecting for land? For starters, you need to get the message out to all the owners of the vacant land in the area. You can include some dialogue like this: “If you have been paying attention to real estate, especially property values, you will know this is a good time to sell this vacant land. Property values are through the roof right now, and the truth is, we aren’t sure how much longer it’s going to last. We have a new president, the interest rates are starting to climb back up, and there are concerns that things could backslide. So, this is the best time to turn your land into cash so you can invest that money elsewhere. Now is the time to sell, and I’m the person who can help you with that.”
Approaching the Builder
Once you have that land up for sale, you can start contacting the builder you most want to work with. Your dialogue would look something like this: “Hey John, this is Darryl from Power Realty. The reason I’m calling is because I know you are working on some buildings and other properties, and you are doing some really great work, and I got a piece of land I am looking to sell to a builder. Are you interested or in the market for any land? If not, that’s OK! I’ve got a list of other builders I’m going to call, but I wanted to call you first.”
John is very likely going to buy that land just so that you don’t call his competitors! And if he doesn’t, then you move on to your second choice, and market yourself to the builders that way.
Ready, Set, Go!
Are you ready to start taking things to the next level? Knowing your strengths and finding ways to delegate those things you are not so good at is important to having a life worth smiling about.
Power Agents, you’ll find lots of tools to help you get out there with courage and knowledge in our Prospecting tab in the classroom.
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