Getting Started in New Construction

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One thing that new and even experienced agents struggle with is getting started in new construction. While it seems with so many new construction sites and real estate developments being built on a constant basis it would be easy, there’s a few things that no one ever tells you on how to be selected as the agent. If you’re one of the agents who have been wondering “How can I get into new construction?” here are some practical tips.

The first thing to do is understand how site marketing teams are chosen: This will likely vary from broker to broker and region to region, but for the most part a developer or builder will either go to their long time agent friend they’ve known forever to market it, or they have a relationship already established with a broker and then the broker and the developer decide together who the site team will be from that company’s agents. Occasionally, a new and inexperienced builder or developer may just randomly call up a real estate office manager, who will then typically meet with that developer and go from there.

If you are a new agent working with a large broker, your first step will be to talk your office manager and express your interest in working in new construction. Some offices may require you to take special classes to understand how new construction works, since you’ll be dealing with things such as lot deposits and closing on houses that may not even be built yet! While I think that should be standard real estate 101, the truth is most real estate fundamental classes for licensing requirements may not even discuss it, let alone thoroughly explain it.

After you speak to your office manager about what requirements are necessary to be considered, you will want to complete any tasks your office manager suggests and then consider building a portfolio or resume. You will want to include your real estate experience, but if you do not have strong real estate experience, you may be able to milk your previous jobs or education for some related experience, such as marketing, web design capabilities, or knowledge of construction and homes.

The old paradox of “you can’t experience without a job and you can’t get a job without experience” may especially ring true for you in this case, but many brokers will consider you if you have a strong willingness to succeed, are motivated, and have participated actively in other office activities and functions. You may also volunteer simply to shadow agents who are already on new construction sites to learn “some of the ropes” that will hopefully prepare you for the next time a development marketing job lands in your office manager’s lap.

If you are a broker looking for opportunities to market a new construction site, or your office is not on the developer’s a-list, you may have to do a little extra work in order to appeal to developers and builders. Here are some tips to help you market yourself to developers and builders:

Network With Builders and Developers: Sometimes you just need to begin establishing contact with builders and developers just as you would with getting listings ordinarily. Attending social functions, joining local organizations, and touring existing developments and scheduling to meet with the builders or developers can often be a good start.

Target Developments That Aren’t Selling: While its probably a good chance a development is not selling because of issues such as price or location, it’s also likely that the developer is not happy with the current real estate company performance in trying to sell the property. You may have a chance to be considered when the contracts expire if you can show unique ideas to the developer to get the properties sold.

Create a Package for Builders: Having a package created for a builder when you meet can be an impressive way to show your professionalism. Some may use a simple folder or binder with quality printed documents, or you could choose to have a presentation professionally bound at a copy shop. You’ll want to include things that show your market knowledge, creative marketing techniques, and any special incentives your company can offer the builder or prospective buyers.

Boost Your New Construction Knowledge: Most agents think they know new construction, but realistically it can be tough to really know everything. Start mining your multi-list for sold and listing comps, tour properties and start collecting any information such as plot maps and any issues sites have had. Be sure you also understand current zoning regulations, permits, and any new construction terms you may not be familiar with.

Add Builders and Developers to Your Mail & Email Campaigns: Once you have introduced yourself to a builder, you can easily add them to your mail and email campaigns with gentle reminders that you are active and busy in the market. Inviting them to special company hosted events, sending them well presented new construction market stat reports, and any other relevant interesting information will help you gain recognition with them. Make sure periodically you also make phone or face contact with them.

Have any other tips for agents who are wishing to break into new construction or market themselves to builders and developers? Share your thoughts and ideas in the comments below.