Get the most out of your network

Take a read of our latest article that was published in The Negotiator magazine

Kevin Ellis, founder of the Land & New Homes Network shares five useful techniques for estate agents pitching to house builders and property developers.

I’m often amazed at how wrong some estate agencies get it when they are trying to win instructions from house builders and property developers.

Long gone are the days when agents could turn up at a site offer an ‘incentive’ to whoever was in charge and seal the deal.

As the land and new homes sector continues to boom, winning instructions from developers and house builders is becoming tougher and more competive.

But, still I’m seeing some select agencies absolutely seizing the opportunity with both hands and many others haphazardly letting it slip through their fingers.

Why?

The select agencies have their research, initial approach, proposition and pitch honed down to a fine art.

Here are five things in my experience, dating back 20 years in this sector, agencies that win more than their fair share (far more) of land and new home instructions do that other agencies don’t.

Think Land

For any agent looking to successfully develop and grow a New Homes department, you need to first understand that the lifeblood for any developer or house builder is the introduction of land.

You can be the best agent in your area at selling houses, but developers will always look after the hand that feeds them with land opportunities. If you deliver them, you’ll put yourself in pole position for the instructions to sell the built properties.

That’s why you need to have a clear plan identifying land opportunities. Be proactive as they won’t just fall into your lap.

Whether you employ 3 people or 100, they are all land finders and you need to train them what to look out for.

Know Every Key Contact

There’s no point in securing land deals if you don’t have potential developers in the wings to seal the deals. That’s why you need to make it a priority for your agency to know all the house building and property developing community in your patch.

Take time to get know who does what in the companies you are interested in working with. Google searches and LinkedIn can be very useful for this, but nothing beats making the efforts to meet them personally for a beer, coffee, round of golf, or wherever and whatever they are comfortable doing.

Show You’re in The know

When approaching house builders and developers it pays to be able show what’s happening in your local area.

Not just what land possibilities and opportunities you’ve come across but also more detailed information.

This information is vital to help you create your land and new homes business plan.

Think about the following:

1. How many active new build sites are in your area with units currently for sale.
2. Sites with planning granted in 2018
3. New build units with planning granted in 2018
4. New build units with planning submitted in 2018
5. Sites with planning submitted so far in 2018

This kind of thorough approach shows developers you take your role seriously and can prove your agency’s efforts to sell their stock will be based on more than just a glossy brochure and some adverts.

Create a Compelling Proposition

When preparing a proposition to present to house builders think carefully and consider the following.

Don’t tell them the typical information you’d tell a vendor, tell them what you can offer to ensure their development is a great success and achieve their goals.

Show them how you can help with part exchange and assisted moves.

Give them evidence of how you can offer add on rental services to prospective investors.

Provide rental guidance to assist the sales staff.

Create a bespoke VIP proposition for BTL buyers.

Show them how you source new land opportunities for house builders and developers.

The Pitch

So, you’ve polished your shoes, done your research, packaged it up professionally and practiced your pitch.

You’ve got your evidence clearly laid out and ideally can show the developers where their buyers will come from.

Now it’s show and tell time.

Here are a couple of things to ask yourself, because these are key things to address during the pitch.

• What differentiates you from the competition?
• What is so good about your marketing plan, experience and network that makes you the best choice for them?

It’s important not to treat a developer like a typical vendor, they’ve heard it all before.

They want to see that you have belief in their product, understand their goals and what you can do to ensure that their development is a great success.

Otherwise they will just get on and do it on their own, or worse still give the instruction to one of your rivals.

Good luck.