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Why Real Estate Agents Should Consider The New Home Market

Written by Posted On Thursday, 15 July 2021 00:00

Last year, about 5.6 million homes were sold in the resale market and close to a million were newly constructed homes. While there is no doubt that the used market has a higher volume, the competition among real estate agents to find resale buyers is unspeakable.

 New agents coming into real estate have no idea how difficult listing and selling used homes will be or how easy new homes sales are to make and close.

 Ask around your office. How many of you are actively seeking new home prospects and are trained to know what to do when you get one?  

This, plus the following benefits below, are among the many reasons why you should consider the new home market if you are a real estate agent.

Make More Sales Per Home Shopper 

By getting into the new real estate game, REALTORS® can increase their saleable inventory, increase their visibility and ultimately make more money by making more sales to fewer prospects. On average, when real estate agencies join the new homes market and incorporate it into their listings, they sell about 20% to 25% more. 

Realtor Mary Carposis, GRI and NHCB with Bershire Hathaway homes  had this experience.

“For eight years I sold resales only. After learning how to find new home shoppers and find the right new homes inventory, I sold seven new homes within 10 months.  Two of them were prebuilds, plus I got two listings from my home buyers,” . 

Easier Than Selling Old Homes

Selling new homes is a lot easier than selling resales. 

It’s not only the competition among their peers, but the competition to find ‘saleable’ used home inventory is even worse. Too many used home showings leave shoppers confused not just about the price but the actual cost of owning older homes with a probability of deferred maintenance and renovation probability issues.  

Realtor Kelly Oxford, NHCB with Conway Real Estate said this;

“After learning how to work with onsite agents, I sold two pre-construction homes. I had no idea how much easier it is. They even wrote the contract and managed the transaction. I am no longer intimidated by onsite sales consultants.”

You Don’t Need To Know Construction 

There is no proof that one needs to know construction to sell it. It may have been true 30 years ago, but today builders who want to work with REALTORS®, and many do, train their teams how to work with real estate agents. Onsite agents will sometimes make the statement ‘Just introduce your prospects to me, and I will do the rest.” And they mean it.  

Not only that, but when you sell a resale your work has just begun with managing the transaction. When you sell a new home, the builder manages all the details through move in. Where does leave you? It leaves you able to focus on your next prospect, instead of being interrupted at home with closing issues.  

Qualify Your Resale Shoppers For New Homes  

According to Home Shopper Insights & Builder Brand Study – Wave 5, by Builder Digital Experience (BDX) 38 percent of all shoppers are ‘undecided’ meaning they will consider both resale and new homes.  

 Are you qualifying your resale shoppers for new homes? Ask your broker what percentage of the broker’s agents are qualifying resale shoppers for new construction. 

Here is the qualifying question:  

“During your online shopping did you consider new construction? The reason this question is so hard to ask is that agents are afraid the shopper will say “yes” and the agent does not have a clue what to do next. So many commissions are lost because resale agents do not show new homes.  

Many people love the idea of moving to a new place, a home that has never been lived in and is waiting to be enjoyed. The fact that new homes are incorporating new technologies, greener materials to cut down on power consumption, and more robust constructing methods is also enticing to many buyers. 

New homes  offer the qualified shopper the possibility of personalizing the home by choosing finishing touches, appliances of their choice, and even the type of wiring to ensure high-speed connectivity. New homes offer many reasons for potential buyers to forget about the resale market.

Why then should general agents be encouraged to add new homes inventory to their residential sales credentials? Because if your mission is retention. Your goal must be commission, which means expanding your identity as a professional in residential real estate to include the easiest ‘sell’ in real estate – new homes.

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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

 

newhomecobroker.com

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