Sunday, 24 May 2020

Prospects Prefer New Home Vs Existing Homes by 53% to 47% Margin Says Major Study.

Written by Posted On Monday, 10 February 2020 12:44

The simplicity of this chart is clear in both its message and what can be seen between the lines.  New homes shoppers now outnumber resale shoppers and the popularity of renovation shows on television are helping resale shoppers understand that while the price per square foot of a resale might be less than a new home, it could cost much more when unexpected and costly repairs surface. 

Source: NewHomeSource Home Shopper Insights Survey – Wave 5 published by Builders Digital Experience (BDX) in May 2019. Surveys in 2018 were completed by 4,427 prospects who were asked “What type of home do you prefer most?”

I don’t know the source, but I read somewhere once that “To know and not to do, is not to know.”  Now that you have seen this chart, what deliverables can you take away? 

Here are three suggestion: 

1. When watching a renovation show, wait for the part where the unexpected repairs show up. Suggest that your home shoppers do the same. It will create important dialog about the real price per square foot of some resales on the market. (Otherwise those homes might have been sold by now.)
2. When showing new homes, privately ask the onsite consultant what the average spending is for upgrades above incentive credit and add that number to the square foot price. By doing so, you are adding a level of trust in your services as a trusted new home advisor when you do.
3. Visit new home communities and ask the onsite agent how the two of you can work together. Don’t ask for listings or referrals. That takes relationships beyond your reach. But you will be more than welcome, if the builders are actively reaching out for co-broker sales. More to come.

      Through the years, I have leaned to always be teachable and that are many times there is your way, my way and a better way. 

What deliverables would you suggest?  

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David Fletcher, NHCB

Lifetime Achiever David Fletcher is Founder and CEO of New Home Co-Broker Academy LLC, home of the New Home Co-Broker (NHCB) designation. More than 4,000 real estate agents have completed the  Academy's course, How To Build A New Homes Niche, a three-hour online course based on research, case studies and David's  long career recruiting, training and supervising onsite teams, who sold more than $3 billion new homes and condominiums.

Along the way, he wrote Condominium Sales and Listings and has been the featured speaker for the National Association of Realtors and a present at the International Builders Show. He served as chair of the Sales and Marketing Council for the Florida Home Builders Association. 

He started in real estate as the project manager for Bay Island, of the first major condominium communities in Florida. During this time, he obtained his Florida real estate broker's license, served as chair of the Sales and Marketing Council for the Florida Homebuilders Association, earned his MIRM designation, and served as president of the Florida Condominium Developers Association. It was here that he leaned to work with local Realtors, 

After a successful three-year run, he brokered 27 lender workouts, 11 rental conversions, a TPC golf course, and more than 1000 condominium units in six different communities. 

He recruited, trained and supervised onsite sales teams for more than 70 communities, always insisting on co-broker cooperation in his listing agreements. 

He has been a contributor to Realty Times for 16 years and contributed to Inman News for 3 years. 

His education philosophy is based on these simple assumptions:

  • Builders need qualified buyers. Realtors need saleable inventory. 
    Today's home shoppers expect their Realtor to help them navigate the buying process whether it be for a resale or new construction. 

To lean how you or your office can benefit with our popular online new homes course, visit our website.

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