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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

David Fletcher is a co-founder and CEO of New Home Co-broker Academy LLC., an online e-commerce business. Visit David's website to take his famous 3-hour online course, How To Build  A New Homes Niche, to become a certified New Home Co-broker (NHCB). More than 5,000 graduates. Content is based on his long career and onsite sales success working with both builders and Realtors to list and sell more than $3 billion in new construction. If you are a broker who wants to offer your agents a way to add new homes to their resale inventory and home shoppers, this is your solution. 

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