Realty Times February 2, 2000

Selling New Homes a Piece of Cake? Think Again.
by Dena Kouremetis

What image do most of us conjure up about the salespeople that greet us at a model home sales office? Are they licensed agents? Will they be honest about the builder's houses and home sites, or will they just try to stack the cards in their favor when asked halfway intelligent questions? How much should they know about the neighborhood, the town itself, the schools and local issues that may affect potential residents?

Many visitors in the market for a newly built home don't really know what role this smiling sales type in a business suit should play after being handed the builder's brochure. To begin with, we know they've got to be able to do more than pleasantly ask those age-old sales queries, "And how did you find us today?"; "Have you been shopping for a home for awhile?" ; "Where else have you looked?", and "Do you have a house to sell first?"

These "qualifying" questions are textbook, designed to gather quick information and weed you out from the "looky-loos" as potentially serious buyers. Builder sales organizations spend millions of dollars each year training their sales people to "qualify" the traffic that comes through the door. This is to minimize the time they may spend on someone who is just there to see model home decorating, may be in the "dream stage" (several years off from buying), or has already bought a new home and now wants to look at what else they may have passed up.

Although the criteria for new home sales personnel may vary from state to state, the same general "profile" exists throughout the country. As in any industry, finding the really "good ones" is not the easiest task. Sometimes the person a builder puts on its front lines can make or break a subdivision, and builders know only too well (when they have ruled out all the other reasons for slow sales) what may be missing from the equation. We can examine a few of the traits that make up a "good" sales consultant, but not forget what constitutes "great" one, making them stand out from the pack and somehow set the stage for a return visit. They should:

  • Employ Intelligent Enthusiasm: I use these words together because, no matter what motivational gurus say about enthusiasm as the most important element in sales, unbridled enthusiasm without substantiated facts as its basis can be just plain ditzy in this writer's opinion. Genuine enthusiasm has a reason behind it; the salesperson has done his homework; he has walked his competition, surveyed the area, armed himself with impressive facts about his builder and is brimming over to explain it all to you when you walk in. He'll wisely dole out the reasons behind his perennial bursts of positive energy in small doses, however; a bit when you walk in; a bit when you have finished touring the models, and save a little more for when he sends out his follow-up thank you note or phone call. While expanding on all this information, he will need to find out just what parts of it may be important to you in the long run. After all, what good does it do for him to talk up a house that can be ready for you in two weeks if you haven't even put your current home on the market yet?

  • Be dedicated to selling the homes: Good new home sales people develop a "love affair" with the homes they sell, the area they sell in, and will eagerly explain why they would buy there if they were in your shoes. Don't think this insincere on their part; it's a type of effective "self-talk" they must do to make their new home community their own. Many of the new home sales personnel I know consider their sales offices their "second homes", unlike the corporate cubicle many others in the work force may occupy. It's a home, not just a "house"; it's a home site, not just a "lot", and it's a neighborhood or a community, not just a "subdivision" to them.

    Think about it for a minute. New home sales consultants are almost always there on weekends and even some of the holidays you and I take for granted. They may miss out on their kids' soccer games, sneak a peek at a Sunday football game on a model home big screen, or be forced to decline a family gathering, unlike the flexibility their re-sale brethren may have. The truth is, we don't even think about what dedication they must possess to maintain the enthusiasm I mentioned earlier. True, the trade-off may be fiscally worth it to them, but many of us can pick out which ones truly have that inexplicable "passion" for the industry, and which ones are there for other reasons.

  • Possess the ability to be an "old shoe". How comfortable should you feel with this person who may be guiding you through one of the biggest financial (and emotional) investments you may make? As comfortable as the day is long. There should be no question too stupid to ask, no limit to the number of times you can return for another "look" and no bit of information that the new home salesperson can't pledge to obtain for you if you deem it important during your decision to buy there. Most new home sales personnel are licensed agents, taking the rules of their "agency" extremely seriously. Although by law they can never divulge neighborhood demographics, they should be able to give you a wealth of vital information. Tidbits such as where the schools are located and how to get important information about them, where the nearest market is, how far it is to the freeway, what the meaning of the abandoned railroad tracks are in the distance, and which neighborhood streets have the potential of becoming much busier for families with small children. Many sales consultants become household words in a certain area, almost like a neighbor themselves while the community is being built, because of the constant interaction they have with their buyers and their residents. Some even arrange "get acquainted" coffees for new neighbors as well as those who are waiting for their homes to be completed, perhaps even inviting a few prospects who are in the last throes of decision-making.

  • Know their product and builder like the back of their hand. Why should you buy there, as opposed to the subdivision just 5 minutes from there with similarly priced homes? How are their homes built better? How reliable is the builder after the sale, when walk-through and warranty items need to be dealt with? What other established neighborhoods can you drive through that the builder has created (although this may be impossible if a builder is new to the area)? What is their company's philosophy and how do they demonstrate it? You should have nothing to fear when walking up to a resident of the community asking for real-life testimonials; in fact, a confident salesperson may even offer to introduce you to someone who recently bought the floor plan you are considering.

  • Be a veritable encyclopedia on the area. As I mentioned, new home sales people need to know basically everything there is to know about the neighborhood and the area in general. They should make it their business to have collected Chamber of Commerce information, know where the city planner's office is in case you want to do some research on your own, perhaps even have a collection of newspaper articles dealing with local issues to share with you. They should be able to fully explain any disclosures about the area in which you may purchase. For example, here in the Gold Country of Northern California, builders require their salespeople to explain soils conditions resulting from the gold mining days; little tunnels, called "adits" that were dug by fortune hunters long ago and how they were compacted by the land developer.

    Sound like a tall order? These are just some of the traits builders look for in new home sales consultants. Oftentimes dismissed as "ticket-takers" in a good market by their re-sale relatives, these professionals don't have it as easy as it may seem when they hand you a glossy brochure on a sunny Saturday afternoon. And, although the elegant model home atmosphere is designed to show potential home buyers all the "what ifs" of buying a new home at a builder's neighborhood, the new home sales person is there to tell them why it may be a prudent decision, providing them with all of the information they need to place the little "sold" button on the home site of their choice.

    Also See:

  • The Difference Between New Home Agents and Re-Sale Agents
  • Builder Espionage: How Sales Associates Keep On Their Toes
  • How Can I Best Use a Builder's Incentive Money?


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