A conversation between Troy Palmquist and Breezy’s James Harris builds insights on possibilities, deal flow, and developer-friendly data.
Over the past few years, real estate professionals have been held back by interest rate fluctuations and inventory shortages, which combined to create a lock-in effect and keep transaction volumes at historically low levels. If you really want to take control of your business, it’s time to get out of the realm of “what is” and into the realm of “what could be.” That means working with developers.
Our relationship with developers begins when we create something that saves time, reduces risk, and promises significant ROI. An agent you can talk to to increase your property’s chances will be a valuable connection.
I recently spoke with Breezy’s James Harris about how they use their proprietary data platform, UnderBuilt, to identify real estate potential and partner with developers to bring it to life.
How to connect with developers: Pizza Play
Mr. Harris began his real estate career working 10 hours a day tearing down door knocks to find leads. His pitch to homeowners was that he had a customer who was interested in the location of their home and wanted permission to show it.
He then buys a pizza, finds a development site, and (after giving him the pizza) asks the project manager for a developer introduction. “There was never a time when a developer said no, because developers are greedy,” he said. “They want to know if you have a buyer for the property or if I’m going to offer them a deal in this case.”
Harris then explained the development opportunity he had knocked on their door and offered to take them on a tour. At that point, if the developer decides to move forward with developing the property, it will take over the underwriting and due diligence.
But now, thanks to new technology tools like UnderBuilt, which Harris has been developing at his business for the past two years, developers can come to them with an opportunity and a specification already built in.
Differences between developers
Most agents work within the realm of existing structures, but developers want the maximum acceptable results. Being able to speak their language (buildable envelopes, setbacks, height limits, slopes, etc.) transforms you from just a local agent to a valued partner.
Harris uses UnderBuilt to analyze city websites, coding manuals, and appraiser maps to mine the most relevant zoning data and provide insights about specific properties. This allows us to track underutilized sites and demolition and provide developers with a real estate vision and relevant data so they can maximize the scope of their projects.
Harris said the difference between early carriers and today’s carriers is that they used to just provide space to developers. But now he can create “entire stories for developers on the fly.”
When you approach your work with constraints, benefits, and reasonable build scenarios, you eliminate weeks of friction and make yourself a valuable resource and the first person developers call for their next project.
Highlighting the benefits of development over traditional consumers: A case study
To demonstrate the power of this data to sell-side clients, Harris shared an agent’s recent experience using UnderBuilt in listing consulting.
“It was a small piece of land. The family had lived there for over 30 years,” he said. “The lot was 25,000 square feet. There was only 2,000 square feet of property on the lot.”
The homeowners thought the house was worth $2 million, based on the price per square foot of comparable properties. The agent used the UnderBuilt report to show the seller that his property was capable of building a 10,000 square foot home, thus showing that the land itself had double the potential of what the single house comp price indicated.
This agent won listings not because of flashy listing presentations, but because of their mastery of data that creates value for consumers and opportunities for developers. While most listing agents focus on comps, a development perspective allows forward-thinking agents to focus on possibilities.
How to become a “developer-friendly” agent
Provide insight, not just access: Developers don’t need a door opener. They need a source for communication about promising properties and constraints. Be consistent: Working with developers is not about winning the commission lottery. It’s about creating recurring deals. Become irreplaceable: This is less about charisma and more about being someone who has the right information time and time again. Be more efficient: Use technology like UnderBuilt to eliminate busywork so you can spend more time communicating and building relationships. “I don’t believe AI can replace that,” Harris said. Develop a collaborative workflow: Identify lots of benefits, give developers a clear overview, present like a partner, and keep relationships on track with meaningful follow-through.
Consumers are becoming more and more knowledgeable, and developers have always focused on the potential for profit. Now it’s the agent’s turn to catch up.
You don’t have to worry about being good at social media or content marketing. Take advantage of information sources to create entirely new niches and entirely new value propositions.
Troy Palmquist is the founder and president of HomeCode Advisors. Connect with him on LinkedIn.
