Currently Reading

Do You Really Want More or Less Realtor Generated New Home Sales?

Advertisement

Do You Really Want More or Less Realtor Generated New Home Sales?


January 17, 2013

It is not a secret to regular readers that increasing a home builder’s customer satisfaction increases referral sales.  Many home builders blow away the 15% national average of referral sales and achieve 40-50%, by virtue of meeting the customers’ hierarchy of needs and having in place a respectful referral sales strategy.

Invariably home builders want their outside real estate agent cooperation rate to decline, as customer satisfaction and homegrown referral sales rates improve.  While this is completely understandable – it won’t happen – in fact, outside real estate agent cooperation usually goes UP!  Let me explain.

Very simply, an outside real estate agent is also a customer.   The more satisfied this real estate agent is (as determined by their client’s customer satisfaction), the more clients that real estate agent will bring to the home builder.  In other words, if the builder makes the real estate agent look good in their client’s eyes/experience, then that real estate agent will be back for more!  We encourage our home building clients to embrace higher outside real estate agent cooperation as a positive consequence of higher customer satisfaction.  After all, a real estate agent’s commission is a variable expense – and I’ll take incremental sales and any associated variable expensee any day as many times as possible, wouldn’t you?

This week’s management meeting question: “Do we have a love-hate, on-off relationship with real estate agents, or do we look at and treat our outside real estate agent network as customers?” 

Written By

Charlie Scott has over 30 years of industry experience as a home builder, author, columnist, speaker, consultant, National Housing Quality Award Examiner and Hall of Fame member. Charlie has worked with over 200 of the nation’s best home building companies. He has been through five major industry downturns and during 2008 to 2011 housing depression, he gave away over 1,000 determined donkeys toys as encouragement. He can be reached at Charliescottwos@gmail.com.

Related Stories

Building Technology

KB Home Launches AI-Powered Chatbot for Customers

KB Home announced its launch of an AI chatbot platform aimed at answering home shopper questions…

Software + Apps

Tips for Using 3D Digital Models to Visualize and Sell Homes

Home builders that are using 3D design tools share their advice on selling homes using virtual models

Best Practices

Why Compact Duct Layouts for HVAC Make Sense

The approach shown here for HVAC duct layouts is a win-win: It saves money and reduces homeowner complaints about indoor comfort

Advertisement

More in Category




Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.