How to Make Vacant Land Your Career-Long Friend Dream of new homeownership is still very much alive today
RISMEDIA, July 5, 2006—“If you build it, they will come…” American moviegoers can still hear that iconic phrase whispered in the back of their minds – a sort of ghostly premonition about Ray Kinsella’s aspiration to build a baseball field amongst a sea of cornfields in the movie “Field of Dreams.” Although it’s become the tail end of many jokes, the principle remains true in the real estate industry: the dream of new homeownership is still very much alive today.
But new homes don’t just sell themselves. Like any residential transaction, it takes experienced skill to sell a new home. Enter the expert new construction agent, whose job it is to sell those homes for top dollar. iSucceed mentor JJ Johnston has made a career out of selling new homes. He explains, “When working with builders, there’s always good news and bad news. Once you get a solid relationship with a builder, it’s automatic business. You can create a lot of sales volume, but they do tend to take more time. They are always searching for representation by a reputable company, and for some reason, they love to equate the success of their sales program with the number of hours that you hold their product open. So there are pros and cons to the niche.”
Johnston began working in the niche soon after he entered the industry and realized the sizable income potential. He put together a lead generation strategy that is still in effect today, coming up with a brilliant idea of how to meet more builders. Once he started down that path, there was no turning back. Soon he was attending builder-centric functions, serving on committees, and building name recognition within the builder community.
Once he established this foothold, he moved into a more assertive plan to solidify his builder relationships; providing them with something of value every month that kept his name top-of-mind and presented him as the most knowledgeable agent in the area when it came to new construction. The old mantra goes that land is the easiest way to get builder business – and that those who find the land will become the listing agents for the homes built there, but just as much as builders want premium location for their new homes, they also want them sold for a great price. This was the case in Johnston’s situation, where very little new land was available, so he adapted by accentuating his advertising and marketing skills.
Johnston continues, “The biggest challenge in selling new homes is creating a sense of urgency. Pre-owned homes have personality, but new homes tend to look a lot alike. My mission, as a new homes agent, is to find out why each buyer is there. Their mission is to remain anonymous, get the info they want, and get out of there ASAP.” In order to create that sense of urgency, Johnston uses an effective technique called “phasing” when marketing new homes. It reduces confusion, allows for more marketable events, and demonstrates consistent milestones in sales success. When asked about how that technique translates into touring homes with buyers and closing them, Johnston laughs, “There must be some buyer-training school somewhere, because they all come in and ask the same questions!”
On this week’s RISMedia/iSucceed Business Development and Training Call, JJ Johnston reveals the priorities of new home promotion, addresses tough marketing issues when dealing with this niche, and shares techniques for generating business with builders that are second-to-none.
JJ Johnston, a Seattle, Washington native, began his 20 year real estate career in 1985. For the first five years in the business, JJ sold exclusively for high volume new home builders and worked only on-site for 5 days every week. It was during this time JJ perfected the systems, techniques and skills he uses today to represent smaller volume builders. New home construction currently represents about 50% of his $20 million annual sales volume. JJ prefers to work with new home builders as well as pre-owned home sellers because of his vast marketing experience, and has a buyer’s agent who works with most of his buyer referrals. JJ specializes on the eastside of the Seattle market in the communities of Bellevue, Kirkland, Issaquah and Redmond, and he is affiliated with RE/MAX Northwest Realtors in Kirkland, Washington. JJ Johnston has also created the successful Power Selling & Creative Marketing Strategies for New Home Builders video course.
Next week enjoy a stimulating conversation with Tim Baker, who drills down on just the right reasons for selling your business, key planning steps to ensure that you make top dollar, and the correct way to determine the value of your company.
Every Wednesday the RIS Media/iSucceed Business Development and Training Call offers rookie, intermediate and veteran agents across the country a chance to discover and implement the proven, profitable real estate strategies of over 200 of the industry’s most successful agents, available only at www.iSucceed.com – the home of the 30-minute Weekly Tele-Seminar and the Web’s most comprehensive provider of real estate tips, tools, tactics and tell-alls. |
