Advertisement
Wednesday, 29 January 2020
Agent Resource Center
Agent Resource Center

Ten Reasons To Sell New Homes

Written by Posted On Sunday, 27 February 2005 16:00

Have you ever had a prospect call you to announce that they bought a new home over the weekend, and will not be buying the existing home you thought they would? If so, learn from it, and do not shy away from selling new homes.

If you are a new agent, I want to encourage you to become involved with the new homes sales process in your area. If you check with the top producers in your market, you will probably discover that a large percentage of their total sales are from "new" homes.

The problem for you, if you don't know the new homes market, is that you will tend not to qualify your prospects for new homes. You'll tend to believe that they want an existing home, because that is what they may have called you about.

You may not feel comfortable showing new homes because you don't understand or haven't learned, new home sales, office, and touring protocol.

As a general agent, your training focuses on MLS as your inventory source, yet there are more new homes sold in many markets than existing homes. While markets vary, as many as 30 to 40 percent of the new homes sold in many markets are 'co-brokered', meaning the builder pays a commission to a general broker for the sale.

The year 2005 is projected to be a good year if not a record breaking year for new homes sales in many markets.

Here are ten reasons you should move into the new homes arena:

  1. Selling new homes opens up another source of revenue that you do not presently have. As you learn how to position yourself as a new homes specialist in general real estate, your confidence will grow and so will your sales.

  2. You will learn more about the market faster. On-site agents specialize in knowing how to sell their location. If you are new in the business, or not familiar with the market in a certain part of your area, a new homes presentation by the on-site agent is a great way to learn.

    When you visit the sales center you will hear all that is going on in the area. You will learn about the schools, taxes, shopping, and job opportunities. This is what on-site agents are trained to sell. I know of no better way to learn about what is going on in that side of town, than to listen to a on-site agent doing their job.

  3. You will always have something to sell. Thanks to homebuilders, there is always something new being built somewhere. You'll never run out of inventory.

  4. You can develop your future resale business by taking care of new homes business in the community. As you sell that community, you are building a nice farm area for yourself. Soon, some of the homes in this new community will be up for resale, who better to list with than a general agent who has sold homes in the community?

  5. The on-site agent could be a listing source. This may be a better source of business than you might realize, but it takes a relationship with the on-site agent to make it happen.

    Many new home buyers have a house to sell before they can purchase the new home. Do you think the on-site agent would have more or less control if they knew the prospect was listing their home with a local Realtor they trusted?

  6. Becoming a new homes specialist will set you apart from most Realtors. Most Realtors do not focus on new homes because they are not in MLS, and it takes work to keep up with new homes construction.

    With the internet it's easy, today you can find out anything you want to about any builder or developer, and see photographs of their homes and floor plans. So can your prospects!

    This means in many cases you are working with a much more informed new homes buyer. But just as important, the buyer is working with a much more informed real estate agent!

  7. You have an oasis, a place where you can share the burden of selling by letting the on-site agent take over for you.

  8. You can develop a strong referral base. New home buyers can be a huge referral resource, especially if they are relocating or retiring.

  9. By staying in touch and truly building a relationship with your new homes buyers, you will get referrals you would not have gotten if they purchased a resale in an older neighborhood.

    You will make more sales two ways:

    • You will not lose sales to new homes. There is really no excuse for this one. Many times it is not that "buyers are liars." It is more of "agents are not qualifiers."

    • You will generate more new homes prospects because, you will be conversant with the market and therefore earn more referrals.

  10. You will always have credible resources (on-site agents) to help you stay abreast of the market, to give you good data regarding buyer demographics, and to help you become a better general agent.

Here's a suggested plan of action:

Visit the sales office, or information center of two communities in your area. Ask the on-site agent to give you a presentation. If they pay co-broker commissions, the on-site agent will welcome the opportunity. They are trained to make a professional presentation about the location, the builders, and the homes. Watch where they stand in the model.

Ask questions. At the end of the day, you will have greater knowledge of your market and much more confidence about showing new homes.

Then, take your prospects to new home communities for a sales presentation.

When you take them into the information center or sales center, you will no doubt be offered something to drink and a place to sit down for a moment and rest. Within a few minutes you are refreshed and ready to hear about homes.

Let the on-site agent take over the presentation of the property, giving you a much needed break. But more importantly the on-site agent, not you, will be selling the location and the builders who build in the subdivision or community.

Here's a real bonus.

You will hear your prospects answer the on-site agent's questions, some, perhaps that you forgot to ask. In many cases, once the prospects see the beautiful models, the newer floor plans and the amenity package, they may decide they want to quit looking and buy a home!

Once you get a feel for selling new homes and the new homes process, you will be glad you made the effort.

Rate this item
(1 Vote)
David Fletcher, NHCB

Lifetime Achiever David Fletcher spent an entire 30-year career working with homebuilders, builder/ developers and real estate agents.Onsite sales teams he recruited, trained and supervised sold more than $3 billion in new construction for more than 50 communities.

He is the founder and CEO of New Home Co-Broker Academy, LLC, where more than 4000 Realtors have earned their New Home Co-Broker designation as of January 1, 2020.

newhomecobroker.com
DocuSign 30 day free trial

Agent Resource

How to capture your next prospect - click here

Realty Times TV

1/8

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.