The art of collaboration

“Since 2007 and 2008, with the financial crisis, there was very little sales activity going on throughout the entire country,” recalls Jim Losik, national marketing director for Magellan Development. “Chicagoland had very low sales and there wasn’t much interaction. We didn’t have product to sell. As the market came back, we continued to reach out to brokers. We offer a very competitive commission and recognize the fact that despite the size of Vista residents, many Realtors wouldn’t want to wait three-and-a-half years to close it and get their commission. We’re paying half the commission up front. We send them emails once a month and materials.”

Losik says that agents account for about half of his company’s sales. This includes the company’s sole building on the market, the Vista Residences luxury condominium development, 375 E. Wacker Drive. Brokers account for about half of the condo sales in the building. The company has an in-house sales team called Magellan Realty.
“The type of product that we’re selling and the type of company that Magellan is, we want to make the experience from a cooperating broker’s perspective as seamless as possible,” Losik says.

Belgravia Group is also among the developers that rely heavily on agents to help move properties. An average of 75 percent of the company’s sales involve the participation of brokerages, according to Elizabeth Brooks, vice president of sales and marketing for Belgravia Group. The company currently has three active developments: the 50-unit Renelle on the River at 403 N. Wabash Ave.; the 38-unit Three Sixty West at 360 W. Erie St.; and the 70-unit CA Washington at 27 N. Aberdeen St. and 28 N. Carpenter St. in the West Loop. The firm trades on its reputation within the brokerage community for high-quality developments and the close relationship it has with Realtors.

“Belgravia Group has always worked diligently to maintain a solid relationship with the brokerage community,” Brooks says. “We have a network of top-producing agents from whom we seek input regarding floor plans, amenities and pricing in the early planning stages of our developments.”

Chris Naatz, vice president of sales and marketing at D.R. Horton, says that about half of the company’s Chicago closings use a broker. He expects that number to grow as more agents and clients have a positive experience with the firm’s locations, homes and communities. Part of that is offering a smooth and efficient homeselling process, as about 80 percent of D.R. Horton’s homes are move-in ready at closing.

“We understand that some agents may not be familiar with new construction so we work diligently to communicate what they can expect and how they can assist their clients in the process,” Naatz says. “Our goal is to create a mutually beneficial relationship, and with our inventory of quick move-in homes, agents have the opportunity to sell homes that can close within as little as 30 days.”

Since entering the Chicagoland market in July 2015, development company Taylor Morrison has seen agent involvement in 45 to 50 percent of the company’s homes, according to marketing manager Michelle Holm. Taylor Morrison strives to work closely with agents on an individual basis to make certain that the client’s needs are being met.
“We know there are homebuyers who either have an existing relationship with an agent or who simply prefer to be represented by an agent,” Holm says. “We respect that and work hard to earn their trust.”

Related Midwest is currently marketing its boutique new construction condominium project One Bennett Park in Streeterville. Vice president of marketing Tricia Van Horn says that even though Related has its own brokerage arm in the form of Related Realty, the company also coordinates with outside agents to bring in prospective buyers.

“Many of our purchasers are represented by an agent,” Van Horn says. “They’re bringing us a client, and the best kind of relationship we can have is one where we have a great back-and-forth with that agent. The purchaser wins in that scenario and gets the best of both worlds.”