The Denver real estate market is experiencing historic lows with resale inventory. Real estate agents are struggling to identify acceptable homes, position their clients’ offers to capture sellers’ attention and manage the sales process from contract to close.
Builders represent a mutually beneficial opportunity for frustrated real estate professionals. New construction homes offer a number of valuable benefits and features to help ease the stressed resale market. Buyers and their real estate agents don’t have to compete with other buyers for homes. Further, new homes offer superior energy efficiency, advanced technologies and builder warranties. The ability for homeowners to choose their favorite floor plan and personalize their interior décor to suit their needs and wants can be a satisfying experience.
Builders and real estate agents have struggled for years between needing each other and not being willing to share clients or potential co-brokerage commissions. Now more than ever builders and agents must find a way to work together in a manner that is agent- and client-friendly.
Real estate agents have access to buyers and sellers looking to enter the marketplace. The more knowledgeable that agents are with regard to new home inventory, the more likely they will be to show and sell those builders’ products. For buyers, choosing to engage a licensed real estate professional before they start their new home search is one of the smartest choices they can make to protect themselves in a legally binding transaction. Knowledgeable agents can recommend the best builders.
Real estate professionals can help builders beyond connecting them with potential homeowners. They understand local trends, challenges and growth opportunities, and can help builders identify land and development opportunities where builders can make an investment in order to create a thriving community.
Additionally, real estate agents can help buyers find the right mortgage lenders for their needs. Many buyers choose to finance their new home through the builder’s mortgage company. Agents will compare competitive rates and fees to ensure buyers are getting the best program offered through the builder.
Builders who develop partnerships with real estate professionals should encourage their on-site sales staff to take the lead in showings. These individuals are trained by the builder and the builder’s vendors, and are uniquely positioned to speak to the home’s features and benefits. The role that real estate agents should play is to be supportive and help their clients understand the building process and timelines, and to advocate for their clients whenever 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@example.com.