2022 Is The Year Realtors Become Professionals In New Home Construction

Written by Posted On Friday, 07 January 2022 20:00

I've been asked to share some thoughts about what the new home construction industry looks like in 2022. It seems like the year Realtors have an incredible opportunity to become professionals in both resale and new home real estate.  

If interest rates increase as projected this year, competition among home builders for financially qualified home shoppers will increase. Plan on it. Homebuilders will continue to reach out to real estate agents and renew their incentive offers.

Onsite agents will continue to build relationships with general real estate agents. 

Homebuilders know that Realtors control motivated, financially qualified home shoppers. Aggressive and resale-inventory starved resale agents will pressure broker/principals to help them learn how to better serve resale shoppers looking in new home price ranges.


Studies show that about 65% of all new homes sold in 2020 were sold to broker clients. Of these new home shoppers, close to 40% of those considered resales. Those who wonder why builders need brokers in such a good market need to understand that about 60% of those standing in line to bid on homesites are there because their Realtor financially qualified them, and their Realtor negotiated the appointment.  

Principals should recommend three objectives to their agents to build a new homes niche:

  1. 1. Help new home shoppers find you. Let them know that you show new homes.

2. Learn how to find the RIGHT  new homes inventory fast. 

3. Connect with onsite agents. Build preferred builder networks.

General agents do not need to learn construction. Learning construction is about as far from the money as they can get. Agents better serve their home shoppers when they insist that the builders or the builder's representative answer all construction-related questions. 

Understand that the out-of-date but ever so present builder policy requiring first-time registration is a myth. Internet shopping became this policy's disruptor years ago. 

There are strong exceptions to this policy, as there should be. But the fear and misunderstanding of this policy confuses agents and creates a resistance to show new homes when agents need saleable inventory and builders need qualified buyers. Builders should announce the policy then openly share that they will make exceptions on a case-by-case basis, if true.

Take advantage of the homebuilder's fixed price to sell more resales and new homes. If your resale shopper is looking for a $500,000 resale, help them see, touch, and feel what they can get for their money – show them a new home that has a base price of $500,000. 

Once they see the new home, it will help them make a better and, at times, a faster and more confident offer on the resale. Worst case: They decide to buy the new home instead of waiting to buy a resale. Why? One little-discussed reason:  They are too confused about the actual cost, given the bids, deferred maintenance, and renovation costs. They don't understand the resale money.

How do you connect with onsite agents? Simple. Talk to them in terms of their needs, not yours. Discuss the following five issues onsite agents have with general agents: 

  1. 1. You race through models. You do not give the builder's agent the time to make their presentation. Promise to provide them with the time they need.

                                          1. 2. Be supportive. Do not be rude. You interrupt with critical comments to make you look good to your prospects.

                                          2. 3. You cut presentations short because you have resale appointments and tell them so. They need to know that this is how you work. But be sensitive. Talk about it. 

                                          3. 4. You force them to discuss incentives upfront. Why? Because you are not conscious that incentives are closing tools, not topics to make you look good by asking about them during the introduction. Share qualifying information with the onsite agent. This information will give the onsite agent a track to run on and clue them in that you know what you are doing.

                                          4. 5. Once you introduce your prospects, do not say another word on the tour unless responding. Your prospects will appreciate that you are putting them on the front row of the presentation.

How do you do this? 

Tell your prospects before arriving at the sales office that you are not going to interrupt the presentation, and you will tell the onsite agent that you have recommended that your prospects ask any questions and that you are going to not say a word. 

 What you have just done has taken all the pressure off you to be an expert. 

Suggested action plan: 

  1. 1. Please send a link to onsite agents you know and ask them what they think. Listen to what they tell you. Take them up on the invitation to visit their sales office or attend their builder presentation. You will get one.

  2. 2. Form a new homes group in your office and kick ideas around. Ask for feedback from those who applied one or all the above. 

  3. 3. Remember: to know and not to do, is not to know! 

I wish you a great new year and that you become one who serves new home shoppers at the same level you serve your resale buyers. Then you will become a true professional in both and resales – and earn commissions you never knew existed. 


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David Fletcher, NHCB

New Home Co-Broker Academy LLC offers affordable online new homes sales training and strategies based on the 20 year experience of its founder and CEO, David Fletcher. More than 5,000 Realtors earned their New Home Co-Broker (NHCB) certification over the past six years by successfully completing the 3-hour online course and passing an exam. 

Fletcher spend his 30-year career representing condominium builders/developers/ developers/single family builders and lenders He recruited, trained, and supervised an onsite sales team that sold more than $3 billion in more than 70 communities. 

His experience in working with both onsite agents and Realtors is unmatched in the industry.

To learn more about the course

 Broker/Owners - Due to the dynamics of the market, many of you will be approached with a request for new homes training beyond what you now offer. Some of you will be approached by agents who want to form new home teams, or you may rethinking about establishing a new home division. If so, as a professional courtesy, David, invites you to contact him for  a free consultation at davidf@newhomcobroker.com. No obligation. This offer may be withdrawn without notice.


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