If you are working with a resale shopper, you must know that more than 50 percent of them will consider new construction, so say the experts.

Resale homes are those that have been previously owned and lived in by someone else, while new homes are those that are newly built, partially built, or can be customized. Both options have pros and cons, but in this piece, we will focus on why some resale shoppers are choosing to buy new homes instead.

1. They cannot find a resale they like enough to buy

2. They make lowball offers for resales that get rejected

3. They find homebuilders in many markets are offering incentives and mortgage rates that can't be beat.

Let's look at each of these reasons in more detail.

1. They cannot find a resale they like enough to buy

Recommendation by New Home Co-Broker Academy: Show them a new home model at the top of your resale showing schedule at the base price they want to spend for a resale. This gives them a way to see for a fixed price how they can live for the money they want to spend, which helps them make more comfortable offers for the resale.

Some resale shoppers have a specific vision of what they want their home to look like, but they cannot find a resale that matches their criteria or budget. For example, they might want to buy a resale to renovate, but the renovation costs exceed their expectations. Or they might have specific preferences for their home's layout, design, or features, but the resales they see are outdated, poorly maintained, or lack customization.

Buying a new home can offer more flexibility and satisfaction in these cases. New home buyers can often participate in the design process and choose their floor plans, finishes, colors, appliances, and other details. They can also benefit from the latest trends and technologies in home building, such as energy efficiency, smart home features, and open-concept living spaces. Plus, they can avoid the hassle and expense of repairing or replacing old systems or structures that might be faulty or unsafe for resale.

• 2. They make lowball offers for resales that get rejected.

Recommendation by New Home Co-Broker Academy: Show them a new home in the price range of their bid plus their projected spend for renovations, so they can see, touch and feel what they can get for their money.

Some resale shoppers seek bargains in the distressed property market, such as foreclosures or short sales. However, these properties are often in high demand and low supply to attract multiple offers and bidding wars. Resale shoppers who make unrealistic or lowball offers might lose out on these deals or waste time and money on inspections and appraisals that do not result in a successful purchase.

Buying a new home can help avoid these frustrations and uncertainties. Based on the builder's costs and market conditions, new home prices are usually more transparent and predictable than resales. New home shoppers can also negotiate with the builder directly and take advantage of incentives or discounts that might be available. Moreover, new home buyers do not have to compete with other buyers or deal with third parties such as banks or courts that might delay or complicate the transaction.

• 3. They shop for new homes without their agent's knowledge or guidance

New Home Co-Broker Academy's recommendation:  if your resale shopper is buying in the new home price points of new homes in your market, qualify them for new homes, then show them a new home first. Not that you are trying to sell one, but you want them to see how they could live for the money they want to spend. They will thank you.

 Home shoppers who visit homebuilders without their Realtor might think they can negotiate a better deal, but that seldom happens. It's not that the agent does not know construction or how to close a sale. It happens when trust is breached for whatever reason, such as poor communications, mismatched expectations, or insufficient market knowledge.

"Going sans their Realtor often happens when the client has no intention of buying a new home. They were shopping to get comparisons. But they ran into a professional onsite agent trained to convert this shopper into a new home buyer. For example, the resale shopper insists on a pool but will not let the Realtor show a new home with a pool because they can't afford one. The shoppers visit a new home on the weekend for ideas and tell the onsite agent they are buying resales with a pool. Does anybody reading this believe this is the first time the onsite agent has heard this?

True story: The onsite agent showed them a new home almost finished. They fell in love with but could not afford a pool. Did the agent thank them for coming in and wish them well?

No.

She suggested: Why don't you buy this home without a pool, live in it for a while, then when you know exactly what you want for a pool and can afford one, add the pool? Do you think this onsite agent might have some training in this area? Exactly. If the agent had shown a new home first in the resale shopper's price range,  the agent might have saved a sale. 

However, buying a new home without an agent's assistance can be risky and costly. That is why about 65% of all new homes sold are sold to home shoppers represented by a Realtor, according to the National Association of Home Builders.

New home buyers might not be aware of all the factors involved in buying a new home, such as financing options, contract terms, warranties, inspections, closing costs, and builder reputation. They might also miss out on valuable information or advice that an agent can provide, such as comparable sales data, negotiation strategies, referrals to other professionals, or legal representation.

The bottom line is that buying a new home can be a great option for resale shoppers looking for more choice, quality, and convenience in their home-buying process.

These are times when knowing how best to serve both the resale and new home shopper will best serve the Realtor. To know and not to do, is not to know.

But choose not to know in the first place can cost thousands of dollars in commissions.