Wednesday, March 30, 2016

Why Realtors Suck at Selling Your Homes

Every modular home builder has tried to get Realtors interested in selling their homes and every time the effort fails. Yes, I know, you have a great Realtor and he/she sells a house for you a year. You could have saved yourself the Realtor fee if you had just put your business on social media or had a good referral program in place. That would probably sell one or two with less effort.

A major problem with the “Realtor as your sales rep” scenario is their lack of knowledge in the distinction of Selling versus Showing. It's about how information gets presented to your prospective buyers. Realtors often take on a "showing" mentality, where they present information without making an effort to actively guide the buyer through a favorable thought process - forget about actually asking for the sale.

Give them a real live house to sell and they are well versed in being Vanna White opening doors and waving their arms as they enter each room like they are presenting the letter board on Wheel of Fortune.

They know that the buying and building process of a new home through your company can take up to a year or more. That is a long time to wait for a commission when they can earn the equivalent commission by selling a used home quicker and probably with a lot less effort.

And if a Realtor shows a building lot to a new buyer, who knows what they will tell the buyer about its buildability and your company. They may embellish the truth to the point that when you enter the picture you find it impossible to fulfill their dream home expectations.

Realtors also don’t want to take the time or expend the effort needed to learn about what you do. Modular is not site building which they usually see first hand. Unless you have a model center, they don’t know any of the features or benefits of your homes.

And lastly, they have little incentive to promote your homes above all else. Their goal is to sell a home, not necessarily your home, and as a result, you may find that traffic which was initially interested in one of your home designs has been redirected towards another option. Realtors become ‘friends’ with their buyers and want their friends to know that they are on their side and not yours.

This doesn't mean that Realtors aren't important to your modular home business. Realtor relations can be a crucial part of your success IF you have lots to sell or a spec home. Other than that, Realtors can provide little in the way of actually helping you make a sale.


Anonymous said...

I am a Realtor and a modular home builder. That being said I have to agree with you about Realtors not being a good way to sell modular homes. Most modular builders do not own a model home and even fewer have spec homes to sell. Realtors do not want to be involved in the long and drawn out process of a builder closing on a contract, waiting for financing, design and production, set and finish before getting paid. And I also agree that they really don't want to know how a modular home is built. If I didn't build modular homes I wouldn't waste a single minute trying to sell an intangible that I didn't understand to buyers. Give me a resell and I'm happy.

Anthony said...

Looks like lack of knowledge causes frustration... I am purchasing lots and building modular spec homes (12-15/year) over and above my custom home division. While I use a realtor to find land or demo/rebuild locations I sell the modular homes myself using social media, my webpage, etc. I just purchased two lots in the same neighborhood and put them up-within 30 days both were sold preconstruction. I was able to answer all question most uneducated realtors cannot and sell them much quicker as well. One of them I got over 60K than asking with many options added. These sales without a realtor saved me over 56K in commissions. Most realtors are unenthusiastic and unknowledgeable which most times hurts sales of any home then throw in being an "order taker" of a product they don't understand well failure is eminent.
Anyone looking to discuss further on how to sell your modular homes let me know I am ALWAYS willing to help. Have a great weekend everyone!