Homes, particularly those for sale or just sold, often need remodeling and repairs. Because of this, contractors are hired out to complete tasks that range from detailing floor boards to a full-blown basement renovation.
Real estate agents have clients that contractors can help, and contractors have clients that are looking to sell. A winning situation for both parties which can maximizes profits and stimulates the housing market. In 2013, as we hope the economy recovers, real estate agents and contractors can and should work together to promote each other’s businesses.
If you are a contractor, take note of the popular real estate agents in your area. After gathering some information and doing some research, reach out to realtors who tend to work on the market level you work within. A contractor who is mainly carrying out projects dealing with houses on the high-end of the market would be aiming for a real estate agent dealing with a similar clientele. A real estate agent primarily working with college apartments would be looking for a contractor doing more apartment-style renovations, and vice-versa.
Before any legitimate trust between a real estate agent and a contractor can be forged, proper research and analysis must be carried out. Without doing the dirty work, the relationship will not be lucrative for either party involved. Legitimate investigation will make the outreach and potential partnership worth the time and effort.
The bottom line here is to pick your spots before making a move. Ideal matches in any business are hard to come by, and contractor realtor relationships are no different. Take your time, and it will pay off.
* Initiate Partnerships
When prospective targets have been found, someone has to initiate contact. The best practice for this step is to head straight for the source. First impressions for business partnerships are just as important, if not more, than other connections in life. Entering into a commitment in the home improvement or real estate industry is a significant process, and should be handled as such.
A specific way to do this is to go straight for real estate offices. Not email or phone, but in person. Wait until they have a second, and approach them. Important items to have with you are client reviews and/or any promotional material like a brochure you may have. This will provide them with a look at your physical face, along with all of the information they need to understand your services. Introduce yourself and present your case for mutual interest in a couple minutes, following up a couple days later over the phone.
The bottom line here is to capitalize on your research. Choose your words carefully while making sure the real estate agent understands you are there for a mutual venture, and not to poach clients.
* Follow Through
A business partnership is only as successful as it is long lasting. It is important to follow through on what was agreed upon and expected. If you are a contractor who has entered an agreement with a real estate agent, be loyal and genuine in all interaction. The reason is not primarily business-wise, but for this conversation it is. Being truthful and upfront with a business partner, in this case, a real estate professional, can lead to a larger and more loyal client base.
Doing quality work is also part of following through. The first mutually shared clients between you and the realtor are very crucial to the backbone of your business partnership. If your agent has a couple who is looking to sell at a price higher than market value, but they need a quick upgrade to make it happen, it is your job to make sure it gets done. Go the extra mile on the first few clients, because in a rebounding housing market a realtor’s client base can be a contractor’s best friend.
The bottom line here is to understand and abide by the parameters agreed upon. Treat your business partner with the respect that they deserve. Not only are the two or more of you sharing time, but you are sharing business and resources. Following through on everything from agreements to labor will make the partnership last far beyond 2013.
Contractors and Real Estate Agents have a lot in common. Client base is one major similarity between the two industries. Not only do contractors and realtors working together expand business, clients too can find greater ease working with such partnerships. Everything becomes simpler when resources are shared.
Martin Orefice is a husband, father, and entrepreneur with an interest in personal finance and real estate. He established USLeaseOption.com, the premier site for finding Florida rent-to-own homes.
Images via USLeaseOption.com.