The Denver real estate market is experiencing an unprecedented inventory shortage. At the close of 2017, we had around 3,800 active homes on the market in the seven-county metro area. This inventory shortage is creating opportunities for builders, realtors and home buyers.
However, the building industry and the real estate industry have very different compliance and fiduciary requirements, along with an overall lack of understanding of how the building industry operates relative to the resale side of the business.
Realtors can help builders create dynamic sales teams, including title companies, lenders, home inspectors, and marketing and branding companies. Some items for builders to keep in mind when engaging with the real estate community is that realtors have access to MLS syndications, local and national web portals, and access to other industry professionals. Further, realtors have a pulse on the market, and have buyers looking to purchase new homes.
Builders looking to partner with real estate professionals should consider whether they are an individual agent, or part of a team or partnership. Are they involved in industry associations like the Denver Metro Association of Realtors, Home Builders Association, Builder Realty Council or one of many others? Are they a Certified Residential Construction Specialist or a New Home Sales Specialist? Do they have a list assist program for your buyers who have homes to sell? All of these factors help facilitate smooth transactions, and strengthen the relationship between home builders and the real estate community.
We have found that consistent communication is key in order for builders to keep their finger on the market. When we work with our builder clients, we have a weekly huddle update. The purpose of this huddle is to gain feedback from other real estate professionals and potential buyers, along with any buyer’s current loan status. This weekly huddle allows the builder to provide updates on specific homes, sub-contractors, permits or approvals.
Having a clear messaging plan, not only for the public but for all parties working on the home, helps keep everyone in line and speaking the same language to the buyer, title company, lender and subcontractors.
Finally, service — not just a service-level agreement to deliver the home, but service after the sale. Let’s face it, a home is one of the last man-made things that is built from raw materials. The ultimate goal would be to create win-win transactions with raving fans. One belief that we have in our organization is that all parties involved with the production and delivery of a client’s new home should be on the same page in delivering the best product or service at the best price possible.
Michael Beninati is managing partner and owner of Windermere Metro Denver Real Estate. Windermere’s Builder Solutions program provides professional marketing, sales and operational support to builders and developers through all stages of new home sales. He can be reached at [email protected].