Real Estate Education [STAR POWER® Chat Archives]: Top Producing Realtor® and STAR Cathy Russell West Lafayette, Indiana on ‘Subdivisions and Working with a Builder’

STAR POWER®: "Cathy, How do I locate smaller custom home builders in my area that may be interested in my services?"

Cathy Russell: "I like to attend and be an active member of the Builders Association and use that as a means of networking there. Also, I suggest visiting lumberyards and asking the managers who are good custom builders that come into their store. Take an interest in what they do."

STAR POWER®: "What requirements are builders looking for in an agent who is representing them?"

Cathy Russell: "Builders are looking for the agent to have basic construction knowledge. I believe CRS 201 is a quality building course and is really good. Then basically enthusiasm and attentiveness. They also like good marketing pieces that promote them as a builder and they want to see your referrals. If you have lots of land listed make up a book with all of your plats, C & R’s, etc. Give all builders a copy of the book. This way they can stay up to date with your listed properties and have all of the information available to them when they need it. This will make you look organized and prepared."

STAR POWER®: "How can I find out how builders are rated?"

Cathy Russell: "To find how builders are rated ask around town, other developers, surveyors, agents, etc. Also ask the builder for referrals of people they have built for and call them. Ask them how the builder was on callbacks, how they were on overruns when building - do they charge for changes? How about offering a 2/10 home warranty on their properties?"

STAR POWER®: "What are some marketing tips you can give me on directing traffic to my model homes?"

Cathy Russell: "These may sound basic but put lots of signage around the neighborhood. Be at the model when you say you will be there (the hours open). You can still be very productive while sitting at a model home that is not busy by prospecting and follow up. Also to promote the model by making flyers and sending them to move up neighborhoods (target marketing) or groups of people based on their salary or profession. Then call them and personally invite them to the model. I also ask them to bring
a friend. This works out great for referrals. Be proactive :)"

STAR POWER®: "How do you get a builder to turn over his guest list? What do you tell him his benefits are?"

Cathy Russell: "Thanks for the question Elaine - Turning over the guest list is a great tool. I stay in total control of the model, greet clients at the front door, I also ask them to sign the guest list in the kitchen and when I get to the kitchen I hand them the pen, seldom do I not get signatures. I make a copy for the builder and I keep the original for myself to follow up on. Be sure to negotiate in writing your commission rate with the builder up front - even if you are friends. Too many times will you negotiate the offer to purchase and the builder will then negotiate your commission."

Terry Lindstrom: "In your marketing, do you focus on the builder and his building abilities, or do you focus on the sub-division in you ads and encourage buyers to come view your wonderful builders?"

Cathy Russell: "Terry - In my marketing I focus on the subdivision. This is what will draw clients to the model. They know what area they want to live in and some may be familiar with the builder’s reputation but most will not. Focus on the subdivision and the house."

The Logosz Team: "Hi Cathy. We have two spec homes that the builder has reduced the price by
$10,000 each. What do you suggest to move these in the next 30 days? We know he missed the
market on design and amenities."

Cathy Russell: "To promote these homes for the next 30 days especially at this time of the year have these homes open every Sunday. Send emails to all area Realtors letting them know this home will be open."

Matt Yeager: "Cathy, what type of builder promos are the best you’ve found that work (Free
appliances, pay points, etc.)?"

Cathy Russell: "100% financing or no closing costs, which you may be able to roll into the financing."

Nancy Williams: "Cathy, do you ever represent competing builders in the same subdivision?"

Cathy Russell: "Competing builders in the same subdivision - This does happen often with me. If I do, I treat them both as sellers of mine in the same subdivision. You can’t promote one over the other - promote them equally - hold them both open at the same hours, days. Have both homes in the same ads."

Michael Kipnis: "Cathy, when you are talking commission what is your usual set up with them? I mean who pays for ads, promotions etc? In our area builders are trying to negotiate your fees and asking us to pay for the ads."

Cathy Russell: "Michael - Regarding commission rates, again I try to treat the builders the same as a regular listing. Pay for all of the advertising just as you normally would on any listing. Your doing the same amount of advertising for them as you would anyone - maybe a little more but they will bring you repeat listings and business. I may give the builder a percent discount due to this fact as well."

Nancy Williams: "Cathy, what price level do you mostly work in and are the homes more
"production" homes or more custom?"

Cathy Russell: "Nancy - price range of homes - I would say the production homes are typically lower end price ranges anywhere from $110-$140. The custom homes built are usually higher from $150-$400. I know it’s a large range but it is true for our area. I work more with production homes though."

The Logosz Team: "Cathy, How many builders do you represent at one time?"

Cathy Russell: "I typically don’t work with more than 2-3 builders at a time."

Chuck O’Malley: "Cathy, have you ever had any clients feel this was a conflict?"

Cathy Russell: "Yes, I have had this happen. Again, treat them both the same, promote their houses the same and try to explain to them when you have their home advertised. Also show these homes to your own clients as much as possible. This is a huge issue here. They want to see you being proactive in selling their house to your clients."

Matt Yeager: "Cathy, how many spec homes are your builders building at a time, or
have on the market at a time?"

Cathy Russell: "The builders I work with typically build approximately 20houses per year "production homes" and the custom builders build approximately 3-4 homes per year."

STAR POWER®: It’s time to get back to work and sell some houses. Thanks to everyone who participated and a special thanks to Cathy for hosting. Cathy can be found via her Lafayette IN Real Estate Blog and her Lafayette IN Real Estate Website .

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