New Home

New Home Inventory Is A Bid-Free Sales Solution

Renovation bids are too high. Multiple bids for resales are too low. Deal killers, morale busters both. Could this be why bid-free, ‘no renovation’ bids are driving resale buyers to ‘new homes?”

All the standard reasons to buy new homes still apply, but, according the National Association of REALTORS®, forty percent of all new homes bought by Realtor-generated buyers in 2014, were purchased mostly as an option to renovating a resale.

General agents do not ‘sell’ new homes. They introduce their prospects to onsite agents who do the showing and the selling. Therefore, there is no need for an agent to learn construction. What general agents need to learn is how to qualify resale prospects for new homes and how to find new homes fast, beyond MLS searches.

According to a study by Builder Homesite Inc., a builder consortium formed in 2000 by thirty two of the largest homebuilders in the United States, thirty-five percent of the home shopping market will look at both new homes and resales. This has changed the way builders look at Real Estate Professionals and themselves.

New homes consultants are in an awkward place because they see the numbers. They know that according to the National Association of Realtors sixty seven percent of all new homes sold are through their co-broker networks.

Yet, you rarely see a Real Estate Professional marketing program included in a builder or national convention program or discussed in new-year marketing strategies.

Why?

Because everybody knows that if homebuilders could cut out the cobroker commission, they could make more money on the house. In the past, when markets become as strong as the one we are now experiencing, homebuilders would cut broker commissions, creating more confusion within the Real Estate Professional community, resulting in Realtors staying away from ‘new home’ training.

Not so today. Production homebuilders are competing for co-broker business like never before and are providing all transaction services plus presale services via their internet advisors.

The above is addressed to help Real Estate Professionals understand that the builder/Realtor commission issues arepractically non existent.

Just look around in your market. We are in a seller’s market in most markets yet homebuilder marketing programs are as aggressive as ever.

They need Real Estate Professionals and Real Estate Professionals need their inventory.

Homebuilders reach out to Real Estate Professionals because Real Estate Professionals have the qualified buyers in their car, and the homebuilders via their own studies know that thirty-five percent of them will consider a new home. they also know that the vast percentage of walk in traffic is either not qualified, motivated or both.

By the way, according to the BHI study, nineteen percent will purchase ‘new’ and not consider resales. If your agents are not marketing to new homes buyers, they are in effect ignoring one out of five home buyer prospects, some of whom will purchase a resale, of course, and will have homes to list.

So, in reality, agents don’t need a ‘How To Sell New Homes’ course. They need to learn to show salable inventory to qualified buyers who can afford what they cannot only see, but purchase without bidding and move in without renovating, be it resale or new a new home.

Northern Colorado is a great place to live! For more information, please give me a ring or email me today. I would love the opportunity to earn your business and partner with you in regards to your Real Estate needs.

If you are looking to purchase, I can show you how to save a lot of money, as much as 10% on the purchase and finance of your next home.

Contact me today to learn about ALL of my strategies to get you the BEST price for your home in the SHORTEST possible time, with the least amount of Brain Damage!

Paul Ross  970-217-3245

RESIDENT REALTY

 

SOURCE: REALTY TIMES