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Monday, 17 February 2020
Agent Resource Center
Agent Resource Center

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 threee-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. 

His marketin gcompany was representing a company building Bay Island, one of the largest waterfront communities in Florida at the time. The company bought his firm, and named him project manager. He eventually become excutive vice president earning his Florida real estate broker's license along the way. 

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

He writes his courses for the agent, not the builder, because "agens are faced with the greatest shortage of saleable inventory in memboer and are not being encouraged are trained as Realtors to farm new home shoppers, team up with onsite sales consutlatns, or undestand new homes showing protocal that builders need and expect. 

 

 

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