RISMEDIA, May 23, 2007-Although it’s clear in many parts of the country that the market is beginning to normalize, many media sources and industry pundits continue to paint a bleak picture of the current state of affairs in the real estate industry. Admittedly it’s easy to get distracted by the negative press, but resourceful agents and brokers recognize the market shift as a new opportunity, and begin to seek out different niches in which to expand their business.
According to 20-year veteran Seattle native JJ Johnston, one such niche that is ripe for any entry-level or veteran agent to dive into is undoubtedly the new home builder space. In most instances this group has been hit harder than agents and brokers by the market pendulum swinging back towards the buyers’ sides, and as a result they are in a position to be more open to developing relationships with local professionals who can help them sell their bloated inventory of homes currently languishing on the market.
In regards to the viability of pursuing this niche in today’s climate, Johnston says, “I’ve always thought that the new home market was a great market to pursue at any time, and particularly with builders, it takes a while for you to build a relationship with them. But I think there’s certain things you can begin to do now that will pay off. For example, I’m about to get a new home community of about six new homes, and this is a relationship with a builder that I’ve had probably for about three years, and now they’re coming into my area and are going to give me some business. So it’s not an immediate payoff sometimes, but there are things that you can do that will get you into that market. I love new construction; there are a lot of benefits to the agent.”
The builder-agent relationship is key to success in this niche, Johnston says, because although it may take some time to nurture and cultivate, the potential business one can earn from even a single builder relationship can exponentially magnify over time, creating a solid additional income stream.
But how does the veteran or even rookie agent begin to crack this network, especially if they have zero experience in the space?
“You have to do your homework,” says Johnston. “There is a certain vocabulary and a lot of things about a new home that we don’t necessarily talk about when selling a pre-owned home, so there is a bit of a learning curve. One of the techniques I’ve used over the years with my builders is I get a tape recorder, and I stand with the builder out in front of the house, I turn the recorder on and say ‘Now tell me about this house. Why did you do this elevation? Tell me about these particular design features. How do you build your houses?’ I’d just put that in my car and listen to it until I began to develop a vocabulary and had a good familiarity with new construction techniques, because you do show a new home differently than a pre-owned home.”
Johnston’s strategy of arming yourself with education from the outset has worked well in his own career. Today approximately 50% of his total business remains builder-based.
As a recognized expert in the field of working with builders, JJ Johnston gives a fascinating look into the basic steps any agent can take to begin to add this niche to their sphere of relationships, in this week’s iSucceed/RISMedia Business Development and Training Call “Power Selling: Creating and Nurturing Relationships with New Home Builders.”
Made available exclusively by RISMedia and iSucceed for next seven days, access this free interview by visiting: http://www.isucceed.com/rismedia/.
The author of many articles and a successful video course on power selling strategies to cultivate with new home builders, in this interview Johnston gets into specifics by describing:
– Simple but powerful steps an agent can take right now to connect with builders in their local community
– How to raise your own visibility as a resource, while learning valuable information to help you better communicate and understand the builder client
– What are the eight critical areas that an agent must absolutely plan for in order to be successful in new home sales
Every Wednesday the iSucceed/RISMedia Business Training & Development Call offers a concise, information-packed interview with the heavy hitters in the industry, from all across the continent, including Hawaii and Canada. Drawing on the experience of over 200 of the industry’s most successful agents, these interviews encompass every aspect of the real estate industry, and are filled with practical suggestions you can implement in your own market today.
iSucceed.com continues to grow as one of the industry’s most valuable sources for tools, scripts, marketing plans, and all-around industry secrets, gathered directly from North America’s top real estate superstar agents. This week take advantage of a FREE 14-day trial with unlimited access, exclusively for RISMedia listeners. Interested parties simply enter the code “RISMEDIA14” when visiting www.iSucceed.com.
