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? 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:
- 65 percent of current home shoppers will consider a new home.
- 53 percent preferred a new home.
What does “consider” mean? To me, it means they may prefer a presale buy that will be new construction. What does this say to you? 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 qualifying home shoppers for new homes? My guess: because they don’t know what to do if the resale shopper wants to see new construction.
Of the 53 percent, 44 percent purchase a “prebuild’, 33 percent would buy a completed inventory home, and 23 percent would buy partially complete. What does it say to you? To me, it says 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.’.
What makes this worth remembering is that Builder Digital Experience (BDX) published in May 2019 the study results, 2018 Home Shopper Insights and Builder Brand Study – Wave 5. BDX provides digital marketing and technology solutions for home builders and has been helping companies in the homebuilding industry connect for over 20 years.
How To Determine If Your Resale Shopper Will Consider a New Home?
As a realtor, it is essential to get a feel for your client; it may be that they are asking for one thing but what they want is another. I will give you two ways, one you can speak. The other you will have to do something.
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 they are nervous about you showing them new construction. That’s a costly reason to lose thousands of commission dollars.
How To Help Resale Clients Make A Confident Decision?
Here is the second way, which we teach in our three-hour online course. Show new homes 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 unsellable homes you are forced to show at times because resale inventory is so tight.
Let’s put it this way:
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. MLS is good. 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 home with a $500,000 base price. The only way I know to do this is to show you a new home. 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 understand the market?”
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 to learn more about us and how we can help you, visit our website HERE.