For years, brokers have helped builders build their business. Now it is the homebuilders' turn to help general agents build theirs. The need is now and the timing is perfect.

Many builders pay all or part of the broker's commission up front for presales while the same agent waits up to six months to be paid for a short sale (if it closes).

It used to be the other way around. Brokers would have to wait for presales to close to get their commissions, but could sell a resale and be paid in 30 days.

Even worse, selling short sales is hard work. Have you seen a short sale checklist lately? Selling new homes is much easier.

Here's the truth:

Builders need cobroker sales more than ever. Agents need to sell inventory that will close in the shortest period. It is time for the new homes industry to send a new clear message to the general real estate community:

The very reason general agents did not sell new homes before, delayed commissions, is the exact reason they will sell new homes today. Not only will you the homebuilder pay early, you will help grow their business!

General agents don't need to be simply reached. They need to be coached. Who better to coach them than your on-site agents?

General agents need to be coached way beyond "bring a prospect and we will do all the work." They need to be coached to build a new hew niche in their market, so that they never lose a sale to a walk-in or remodeler that they should never lose.

Teach general agents how to find new homes buyers, how to 'needs' qualify them for a new home, how to follow sales office protocol, their role during a sales presentation and a presale meeting, why your follow up system works, how you protect their commission, etc.

Here is a core issue that builders need to understand. There are major differences in how general agents are trained and how new homes consultants are trained. They are practically 180 degrees out of sync emotionally and professionally.

For instance, general agents are trained to solicit 'offers." New homes consultants are trained to protect and be proud of 'price."

Here are 7 more differences:

1. General agents are trained to show a few prospects many homes. On-site agents are trained to sell from the few models built by their builder.

2. General agents need few details about the home. On-site agents know everything you need to know about every detail.

3. General agents see their job as helping the buyer 'find a home." New homes agents see their job as helping the buyer understand that their location, homes, and value are the best available.

4. General agents deal with a few prequalified ready, willing, and able buyers generally in the market for a home within weeks. On-site agents deal with a much higher volume of all kinds of shoppers, many not qualified or even interested in buying.

5. General agents are not accountable to anyone. On-site agents usually have to provide traffic and sales reports on a regular basis.

6. General agents don't know everything about their product, and usually nothing about the builder. On-site agents must and do sell their company, products, and builder.

7. General agents are truly independent. On-site agents like the structure of having their own office and knowing the details of every phase of selling a new home.

What new homes agents don't understand about general agents, based on in-office surveys and sales meeting comments heard in general agent offices:

1. They like the 'easy' sell idea. We all do.

But mostly they care about their prospect buying a home and getting paid. The fact that it is an easy sale and on-site agents do most of the transaction management is icing, not the cake.

2. There is a reason some agents 'fly through the models'' with their prospect.

Understand that if they are with a relocating prospect their company expects the agent to show the prospect all sides of town, perhaps, to get a feel for the types of homes and prices available. They will be back if the prospect prefers your side of town and liked your price range.

3. Since 'location, location, location' is the real estate mantra, why do new homes agents spend so little time selling location?

The fact is the general agent may not know what is going on with the schools, industry, shopping, taxes, etc either. Who better to sell 'location' than the on-site agent? Don't leave the agent in a position of having to answer questions related to these matters after they leave you.

4. General agents are not going to risk being embarrassed by not knowing how to get to your sales office. Invite general offices to hold their sales meetings in your sales office, sponsor breakfasts, lunches, and other events as often as possible to get the agents to your property. That way they will know and be comfortable bringing prospects.

5. When asking for offices to caravan your models, call the broker's office; ask for the "caravan coordinator." Then ask to be placed at the end of the next caravan scheduled for your side of town. Always offer lunch so you can control your presentation. This way you are doing for the broker, what you want the broker to do for you -work within his system.

6. Compliment the agent in front of his prospects during the tour. A comment like "I see you are working with one of the top agents in our area," would go a long way towards building trust and loyalty with the agent.

7. Follow up with the general agent and don't complain if they don't call you. We know they should, as a courtesy, but don't let that get in the way of not building a broker relationship.

8. Invite offices out for a sales program. Talk some about your models but a lot about how much you understand them. You will be amazed at how they will respond.

One thing needs to be clearly understood by on-site agents: Brokers are to your business, what prospects are to general agents.

Buyer loyalty to a broker is almost none existent, but broker loyalty to an on-site agent can be developed. In times like these there is nothing like a call from a broker asking for an on-site agent by name because they want to bring a ready, willing, and able prospect to the sales office.

It's ok to remind brokers that you work for the best builder, have the best product for the best price, and that you will do most of the broker's work. But that was yesterday.

What they need to hear repeatedly today is that you, the homebuilder, will not only make it easy for the agent but you can help them develop a long term new homes niche in their market.

Help general agents build their business and they will help you build yours.

Published: April 1, 2010

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David Fletcher has been a Florida real estate condominium and new homes broker for 30 years with more than $3 billion in new construction sales. In 2008, Keller Williams Realty International named him a "Lifetime Achiever." Along the way he has chaired the Florida Homebuilders Associaiton Sales and Marketing Council, trained thousands of general agents and on-site agents to work together, and was a featured speaker at the National Association of Realtors. Recently he founded New Homes Niche, a builder-certified co-broker training system "to meet the growing trend we see in short sale buyers moving to new homes for a lot of reasons." Call David at 407 234 2349, , and visit his website.