The following is Part 2 of a four-part series. Part 1: Builder/Realtor Relationships Poised for Long-Term Win-Win
Today we are going to reveal what experienced Realtors like about selling new homes.
About a year ago New Home Co-Broker Academy fielded an unscientific survey to see what could be learned from Realtors already showing new homes.
We omitted one important reason as a survey choice because it may skew the results, and it is this:
Realtors like selling new homes because onsite consultants do all the work.
Kathy agrees.
Kathy sold resales for 16 years, then sold her first new home to a resale prospect she was about to lose. Renovation bids kept coming in too high.
Finally, she remembered to show them a new home in the price range of the resale and renovation budget.
“They needed to see, touch and feel what they could get for their money. The prospects liked the fact that the home was new. They purchased a new home and could not quit raving about me at the closing.” Kathy said.
Today she sells only new homes. Why?
“Because I like to travel, and the builder does all the work.”
Some experienced Realtors are learning there are other not-about- the house reasons to show new homes.
Troy said he had been showing resales for six weeks and running out of ideas. He remembered to suggest that they look at new homes in their resale price range. He said he advised his clients to ask questions and that he was not going to say a word.
“The onsite agent was amazing. As their coach, I was under no pressure to talk. My people bought that day. I have been doing it wrong for 20 years,” Troy said.
What follows is a summary of the survey’s methodology and findings, with our comments. Your comments are invited.
Methodology
In the last 27 months, 1562 Realtors completed a three-hour course called How To Build A New Homes Niche. Offered by ABD Developers on behalf of its six builders.
Realtors were asked to complete a survey to share their attitudes about working with builders.
The Academy wanted to find out how those were successfully selling new homes felt about working within a new construction environment with home shoppers.
Two hundred and seventy-seven Realtors completed the survey. The experience of those taking the survey was as follows:
| Licensed less than a year | 55 | 20% |
| Licensed 1-3 years | 52 | 19% |
| Licensed 3-5 years | 24 | 9% |
| Licensed five years or more | 145 | 52% |
| Total completions | 277 |
Comment: We have constantly been surprised at the high percentage of experienced Realtors that take this course.
| Never shown a new home | 213 | 17% |
| Had shown a new home | 44 | 83% |
| Total completions | 257 |
Comment: No surprise here. Those completing the survey are about to take a new home seminar. Most have been selling new homes for at least three years.
| Never been trained to show a new home | 43 | 17% |
| Have not been trained to show new homes | 207 | 83% |
| Total completed | 250 |
Comment: Our guess, former onsite agents, are part of the “trained” group.
| Always qualifies for new home prospects | 194 | 79% |
| Has never qualified for new home prospects | 52 | 21% |
| Total completed | 246 |
Comment: This is a strong case for agents to qualify their resale prospects for new homes. The problem is that most would not know what to do if the home shopper showed an interest in seeing a new Home.
| Has worked with builders' internet advisor | 56 | 27% |
| Has never worked with builders' internet advisors | 149 | 73% |
Comment: This incredible inventory-finding, prospect- registering, appointment- setting service is about 15 years old. Only a small percentage of Realtors have ever heard of this service.
Mary said she likes working with internet advisors because they help her find the right new homes inventory.and, in most cases, set the appointment with the new homes consultant. “They also protect my commission at times when I am too busy to bring the agents out to the property,” Mary said.
Take a moment to see if you see anything that surprises you in the chart below. We have a suggestion for home builders and some help, we hope, for Realtors. Participants were asked to check all that apply and to skip this question if they had not sold a new home.
Remember, these are Realtors who are proactively selling new homes.
We have some good news for builders. For years you have touted the fact that you provide all transaction management. According to this chart, you might want to sell the fact that you also write the contract, because it scored higher than transaction management as a ‘like.’
For Realtors, we have some good news. We are not surprised that the fixed price comes in as the least favorable of the choices
.The fact is, however, the builder’s fixed base price is your best way to establish a price baseline from which home shoppers can compare new Home and resale values.
If experienced new home agents find ‘fixed price’ the least favorable of these five, it is reasonable to assume that newly trained agents who have no new homes training would be even more resistant.
Showing a new home first on your showing schedule is a powerful trust-building strategy that helps home shoppers ‘understand the money - something they have a hard time doing with resales.
Again, before you read our comments, what is your reaction to the chart below? Any surprises here?
Only five percent had a problem with a builder. It is obvious that builder issues are not a reason to avoid selling new homes.
Experienced Realtors like a lot of things about selling new homes beyond the features of the new home itself.
Mainly, experienced agents like showing new homes and trust the builders to pay them. They don’t have problems with builders. They work within the system and do the simple things like letting onsite agents do their job, ask internet advisors for help, and understand how to use ‘fixed price’ to help their prospects understand the money.
Next: Part 3. What Builders Need To Do To Make More Co-Broker Sales
