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This Old House - Do-it-Yourself

New Homes Sales Training for REALTORS by REALTORS Is a Win For Everyone

Written by Posted On Wednesday, 18 July 2018 09:24

In my last column, we learned that two out of three real estate agents do not find the training received by homebuilders useful, and we agreed with a study's recommendation on how to fix it -- engage the agents in the builder's sales process.We recommend, and in fact share how to do so, in our online course, How To Build A New Homes Niche.

In our opinion, homebuilder's need to rethink the process.

The process should begin by stocking the pond where Realtors fish: place a home or floorplan in the multiple listing system (MLS).

Then it is up to real estate trainers to teach their agent's how to find new homes inventory and leverage new home showings to sell and list more resales and close a few new home escrows along the way. Why?

The market calls for it. "New homes' may become the ‘short sale' of the future, by default. Saleable inventory is in-and is predicted to stay in-short supply for the foreseeable future.

We learned that forty percent of all new homes buyers, according to the National Association of Realtors, decided to purchase ‘new' rather than renovate a resale or ‘wait' and that this market is projected to grow.

Today's column recommends to Realtors how to offer new homes sales training that helps agents build their resale listing and sales business, instead of destroying the agent's career. This must be done in the face of strong headwinds from home builders who are insisting that agents learn construction, which from a Realtor's standpoint is way too far from the money.

This is not just an opinion. Case studies and demographics follow, to support the position that it is time for the Realtor community to offer its agents Realtor-driven, not builder-driven, new homes sales training.

What I share here I learned in the field or from successful agents, many of whom I have featured in Realty Times columns over the past 10 years. Three examples follow. None had any construction experience.

You are encouraged to read the stories behind the links.

Internet Advisor Co-Cobroker Services Help End Homebuilder/Realtor Issues -- Why Realtors never have to fear requests to see new homes ever again. This column has attracted over 72,000 visitors to date.

Rising "Used-Home' Obsolescence Drives New Home Sales For Alert Realtors -- about a couple who spent two months getting renovation bids for resales and found them all unsatisfactory. At the agent's suggestion the prospects finally visited a new home sales office. The Realtor reported that the couple purchased a new home in a week. This Realtor had eleven years experience and had never sold a new home. Commission $9500.

Leverage New Homes Showings To Sell More Resales AND New Homes -- about a new agent working with her first buyer who wanted to ‘steal' something and was losing bid after bid trying to purchase a bank-owned home. She took some advice and showed them a new home. They bought in two days, closed in thirty. The agent said she ‘would have never thought to show them a new home and was out of ideas." Her commission; $6,000.

I'll give Realtors this: Before the internet and technology and before production builders stabilized their commissions and commission policies, in favor of the Realtor, the real estate profession did not have the solid foundation or sense of trust that agents have a right to expect now.

Some projections say new home construction is going to exceed 1 million units in the next 12 months. According to the National Association of Realtors, Realtors sold 67 percent of all new homes sold in 2014. If that number stays the same, Realtors will sell 670,000 new homes. If the commission averages $10,000 a home, that will be $6,700,000,000 in sales commissions paid to real estate agents. SIX BILLION, SEVEN HUNDRED MILLION.

So, it is hard to make a case that showing new homes and working with new home buyers is a waste of time. There is no way to know how many resale listings came from these buyers or how many new home prospects decided to purchase a resale.

It is safe to assume that most of these Realtors had no construction experience, did not do the actual selling or manage the transaction. What they brought to the builder and what they got paid to do, was bring a ready, and a financially qualified prospect to their sales office and let the onsite sales consultant take it from there.

To Realtor leadership: As you know, new homes construction is ramping up, and so is unsaleable inventory. 

Homebuilders came with one foot kicking and one foot dragging the ground to MLS, In return, they become a trusted seller. It is not only maximum exposure to local Realtors, it assures that all of the data needed and used by Realtors is included in the listing.

Homebuilders need Realtors and know it. Your agents need more saleable inventory and know it.

It is time for Realtors to look beyond the problems to a solution that will better serve their agents, because many agents are losing sales for one reason: a lack of saleable inventory.

In my next column, we will look at what this training should include and how to build a new homes niche. Most agents think it starts with learning new homes inventory, which was the case pre-internet, but can be a frustrating time wasting exercise.

The right training and education will go a long way to help agents grow their business by selling and listing more resales and selling their share of new homes along the way.

New homes sales training for Realtors by Realtors is a win for the builder, the broker, and the agent.

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David Fletcher, NHCB

Lifetime Achiever David Fletcher spent an entire 30-year career working with homebuilders, builder developers, and real estate agents. Teams he recruited, trained and supervised for more than 70 communities, sold more than $3 billion.

He is the founder of New Home Co-Broker Academy, LLC, where more than 2500 Realtors have earned their New Home Co-Broker designation. Those earning the NHCB designation must complete the online course, How To Build A New Homes Niche and pass a 20-question multiple choice exam.

newhomecobroker.com

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