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 it will be. 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 listings, increase their visibility and ultimately make more money from selling more inventory. On average, when real estate agencies join the new homes market and incorporate it into their listings, they sell about 20% to 25% more.
“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,” Mary Carpousis, GRI, NHCB Berkshire Hathaway Homes Services Realty.
Easier Than Selling Old Homes
Selling new homes is a lot easier than doing so in the resale market. 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 buying older homes with a probability of deferred maintenance and renovation probability issues.
“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,” Kelly Oxford, NHCB Conway Real Estate.
You Don’t Need To Know Construction
There is no proof that one needs to know construction to sell it. It may have 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 leave 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 Exerience (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’s the 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 the resale agents don’t 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 very enticing to many buyers.
New homes also 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.
Become A Certified New Home Co-Broker At New Home Co-Broker Academy.
Caution: Our online 3-hour course is not about construction. It is not about the builder. It is about the real estate agent.
The course, How To Build A New Home Niche is pushing 6,000 graduates and is written and presented by a REALTOR® who spent his entire career recruiting, training and supervising onsite sales agents. His team earns more than $3 billion in new homes construction.
If you’re curious to learn more about us and how we can help you learn about the new home market, visit our website HERE.