Having construction knowledge builds real estate businesses
By Annemarie Mannion
A hitch in a home inspection doesn’t faze Troy Toulou, CRS, who from time to time has used his building skills and knowledge to ensure deals close.
Toulou, who works with RE/MAX Honors in Puyallup, Washington, recalls one deal that nearly broke down after an inspection revealed a few rotted boards on the side of a garage.
“Rather than letting the deal die on the vine, I went out and pulled the siding off the garage and replaced it,” he recalls. “The deal went through.”
REALTORS® who can tap another related interest or expertise—such as building knowledge—can expand their businesses, says Toulou and other REALTORS® who have done it.
Building knowledge as a marketing tool
Toulou, who’s been a REALTOR® for 12 years, gained his knowledge by tackling improvement projects in his own home.
Building construction know-how
He may never build a house, but Troy Toulou, CRS, with RE/MAX Honors in Puyallup, Washington, says any REALTOR® needs construction knowledge. “Lacking that knowledge can be crippling for an agent,” he says. “There’s an expectation you’ll be able to help buyers and that you’ll be able to tell them what sort of work needs to be done on a house.”
One way to increase that knowledge is through the National Association of Home Builders, which offers classes for professionals who aren’t involved in the home building industry. One course, “House Construction as a Selling Tool,” provides an overview of the process of planning developments and individual homes.
The class helps agents respond confidently to buyers’ questions and concerns about all phases of the building process, translate development and construction plans, collaborate with a builder to properly set and meet buyers’ expectations, and to close sales.
He has also used his building skills as a marketing tool by offering $500 in free labor to sellers to help prepare their homes for sale. “I don’t get into anything too heavy. It’s mostly cosmetic, but it really appealed to my clients,” says Toulou, who repainted an entryway and re-grouted a counter.
While Toulou has tapped his building skills to promote his business, Keith Furrow, CRS, has used his skills to handle sales and marketing for homebuilders. During his 37-year career, Furrow, who operates Keith Furrow and Associates Realty in Pensacola Beach, Florida, has sold 6,000 homes in 200 subdivisions.
Though he reads books and has taken classes to increase his building expertise, Furrow says much of his knowledge is from on-the-job training. “I’ve been going to projects for 37 years and finding out, ‘Why did you use that nail?’ or ‘Why did you use that trim?’ If you do this as long as I have, you build an expertise.”
Currently, Furrow is a 50-50 partner in Gulf Coast Dream Homes, which operates in Gulf Breeze, Woodlawn Beach and Avalon Beach in Florida. His partner chooses the subcontractors and suppliers, determines the permitting process and handles day-to-day construction operations. Furrow prices, markets and sells the houses. Together, they decide the features and styles.
Fostering relationships with builders grows business
Connecting with a builder is good for business, says Furrow, who, in one of his first jobs, sold homes for a developer in Omaha, Nebraska. “Once you build a relationship with a builder, it’s a listing machine,” he says. “That’s why I like it.”
Having a knowledge of building practices assures builders of his value to them. When working with a prospective buyer, Furrow doesn’t need to call the builder to get answers to any number of questions, from why the house came with a particular trim to whether a window style can be changed. “If a builder had to come out and answer every question, they’d never get a house built,” Furrow says.
Furrow says it takes time to build a relationship with a builder. He recommends:
• Meeting builders
• Visiting builders’ websites
• Knowing builders’ listings
• Keeping track of builders’ inventories
• Building basic construction knowledge
Understanding what goes into constructing a house also helps Furrow ease buyers through the process of signing on the dotted line of a contract.
“You need to manage the buyer’s expectations. It’s rare to build a house where there isn’t some glitch, where there isn’t a change,” he says.
Like Furrow, Toulou says having building expertise has benefited him in many ways. He also offers services as a handyman, and clients have called him to patch drywall, replace doors or fix a porch that had settled. “I’ve had people say, ‘I’m not interested in selling now, but I sure need some help with a problem in my house,’” he says.
His ability to handle small, mostly cosmetic home improvement projects has helped him connect with clients and withstand the ups and downs of the real estate market. He has revenue coming in even when an expected sale didn’t happen.
“It smooths out my roller-coaster ride,” he says. “I think any agent would understand that.” 
Keep an updated list of local trades
Building her own home has armed Mollie McCarthy, CRS, with knowledge that helps her real estate business.
McCarthy works with Chuck Leathers Real Estate in Frisco, Colorado, where much of the housing stock was built in the ’70s and ’80s and is in need of updates. Unfortunately, there also is a labor shortage. She keeps a list of contractors in different specialties with names of at least two to three in each category. “I can contact the trade on behalf of my client. It cuts through a lot of the process for the client,” she says.
Overseeing construction of her own home better acquainted her with the trades and the cost of building materials, which is rising, and helped her keep abreast of new trends. After going through the grueling process of getting a construction loan, she is better able to help clients prepare for approaching lenders. “You need to know the real costs with the procurement of the land and what it’s really going to cost to put the infrastructure in,” she says.
One way for REALTORS® to better connect with the building trades is to get involved with a local builder trade association, McCarthy says.
Gain knowledge about home renovation. Search the education catalog using the word “renovate” at CRS.com/learn.
