Most builders overlook their most valuable lead source: realtors. While these professionals have direct access to qualified buyers and valuable land opportunities, many builders struggle to build profitable relationships with them. Here are the seven costly mistakes to avoid, and more importantly, what to do instead.
Mistake #1: Waiting for Realtors to Find You
Many builders simply list their services online and hope realtors will bring them deals. This passive approach leaves money on the table.
The Smart Approach:
Take an active role in building realtor relationships. Start by identifying realtors who list land in your target area. Instead of just introducing yourself, approach them with specific opportunities or solutions to their current listings.
Mistake #2: Not Understanding the Realtor’s Perspective
Builders often focus solely on their own needs, forgetting that realtors need quick, reliable commissions.
The Smart Approach:
Structure deals so realtors get paid faster. Instead of waiting until the end of a 6-8 month build, arrange for partial commission payment when land closes and the remainder at framing. This approach makes you more attractive to work with.
Mistake #3: Failing to Provide Marketing Tools
Many builders expect realtors to figure out how to sell custom homes on their own.
The Smart Approach:
Give realtors everything they need to succeed. Provide professional renderings, floor plans, and clear pricing structures they can easily present to potential clients. Make it simple for them to sell your services.
Mistake #4: Poor Communication During Projects
Radio silence during the building process is a common complaint from realtors.
The Smart Approach:
Create a simple system for regular updates. Weekly progress photos and brief status reports keep realtors informed and confident about referring more business to you.
Mistake #5: Not Leveraging Realtor Networks
Many builders work with just one or two realtors, missing out on broader market opportunities.
The Smart Approach:
Develop relationships with multiple brokerages. Create a presentation about your home packages and offer to speak at their office meetings. This positions you as an expert and opens doors to more opportunities.
Mistake #6: Inadequate Follow-Up
Too often, builders have one conversation with a realtor and then disappear.
The Smart Approach:
Implement a consistent follow-up system. Regular check-ins, even when there’s no active project, keep you top of mind. Share market updates, new projects, and potential opportunities.
Mistake #7: Missing the Land Development Opportunity
Many builders wait for realtors to bring them clients who already own land.
The Smart Approach:
Help realtors sell their land listings faster by creating home packages. When you see land listed in your area, approach the realtor with a complete home package including renderings and pricing. This helps them sell the land while securing you the building contract.
Real World Success Story:
Consider Jeff Walsh in Chicago. Using these approaches, he secured his first $1.3M custom home contract through a realtor relationship. Today, that same realtor brings him multiple deals, expecting to earn over $200,000 in commissions just from Jeff’s projects this year.
Taking Action:
Building profitable realtor relationships doesn’t happen by accident. It requires a systematic approach and the right tools. Having helped builders across America develop these relationships, we’ve created a complete system for success.
Ready to transform your realtor relationships and secure more profitable deals? Our Fast Track Ready-To-Go Toolkit includes everything you need:
- Proven scripts for approaching realtors
- Deal structure templates
- Marketing materials
- Follow-up systems
- Complete implementation guide
Get started today for just $50 and learn the complete system for building profitable realtor relationships that bring you consistent, high-value projects. Learn more here.