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When to Show New Homes to Resale Buyers

Written by Posted On Thursday, 23 September 2021 10:23

More home shoppers today will consider a new home. Is that a surprise? Is it true? Does this mean that more home shoppers are going to buy new construction than resales?  Perhaps. But it does prompt one to realize how important it is to understand the market and know what to do about it. Does it not? 

Here are some results from a study conducted by arguably the most credible new home marketing company in the United States. 

According to their study:

1. 65 percent of current home shoppers will consider a new home.
2. 53 percent preferred a new home. 

What does “consider” mean? To me, it means they may prefer a resale but purchase new construction. What does this say to you?  If true these numbers say that if agents don’t learn to qualify for new homes in this internet-driven world, they will lose thousands of dollars in commissions.

Why are more agents not qualifying home shoppers for new homes? Because they would not know what to do with a new home prospect if they had one.. 

Of the 53 percent, 44 percent would purchase a “prebuild’, 33 percent would buy a completed inventory home, and 23 percent would buy partially complete. What do these numbers tell you? 

It tells me that by adding new home inventory to your business, you would be adding three different types of homes to your resale inventory offering, not just ‘new homes.' Or as some would say "saleable' inventory.  These results were published in May 2019 by Builder Digital Experience (BDX). The company has provided digital marketing and technology solutions for homes for over 20 years.

How To Determine If Your Resale Shopper Will Consider a New Home?

The first and best way to find out if your resale shopper is interested in a new home is to ask this question: Are you considering a new home during your resale search?  How does asking that question make you feel? If you got a touch of angst, you need to address the reason why. It could be as simple as you don't know how. 

How To Help Resale Clients Make A Confident Decision.

Here is the second way, which we teach in our three-hour online course. Help them understand the money. Show them a new home at the top of your showing schedule.

“But they said they did not want a new home.” I know. But on the other hand, you don’t want to spend weeks with them as they shop bids for renovation prices if they purchase homes you are forced to show due to tight inventory.

Your home shopper says they want to spend $500,000 on a resale. 

Here’s your script: 

“My most important concern, Mr. Prospect, is in this crazy market you clearly understand what you can get for $500,000. I can show you comps and we can look at homes on the internet. The best and frankly the only way I know how you can absolutely for sure know how you can live for $500,000 is to visit a $500,000 new home so you can see, touch, and feel how you can live for the money you budgeted. It makes no difference to me whether you purchase a resale or a new home. What makes a difference is that you understand what you can get for the money you want to spend, Do you see any disadvantage to you in taking this approach to understanding the market?”

Most have never heard such an offer and will appreciate your showing a new home. Yes, they might buy the new home. And Yes, they will be in a better position with more confidence to make an offer on a resale because they have something by which to compare prices.

Think about it. Once they see the home, no matter where it is located, they will compare what they saw to the asking price of the resales. They are in a perfect position to make offers with confidence and you have reduced the odds of them shopping new home without you. Try it. Many will return and purchase the new home. Others will purchase a resale. Either way, you could be picking up a commission check you might have lost. 

Become A Certified New Home Co-Broker, With Credentials

The real secret is not a secret. It’s a little-known truth. There are only three things you need to learn to do to become a huge success working with new home shoppers. 1. Learn how to find the right new homes inventory fast. 2. Learn how to help new homes find you on social media 3 Learn how to build a preferred builder network and work with onsite agents that want to work with you.

If you’re curious about why more than 5,000 Realtors have taken our course, and become certified new home co-brokers, visit our website now.

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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. 

Learn more and enroll.com

 

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