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My first listing contract
after I got my real estate license was for 72
building sites in a large housing development. I was lucky enough to expand
the listing contract 4 months later to include the entire development. My
business was going along okay, but not really up to my expectations. When a
client would come into the office and mention they wanted to build a new
home, I would give them a list of builders I copied from the phone book,
and tell them to come back when they were ready to buy. |
Vegas Wasn't a Bust for the International Builders’ Show 2004 Despite Cold December Weather, New Home Sales Hot Yesterday’s New Homes Are Today’s Resale Homes Material World – Insulating Concrete Forms Agent of My Success – Tony Greer
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We asked Tony to share some additional thoughts and advice based on his experience and success in new home sales. What are some of the differences real estate professionals face between selling resale homes and new homes?
New homes are harder for some buyers to visualize in the
early stages. I use virtual tours to help my buyers visualize the individual
styles of the builders I work with, highlighting the special features each
builder adds to the home. I can put these virtual tours online and send them
to out of town clients before they visit, and I run the tours in a
continuous loop on my laptop at open houses. Existing homes, of course, are
easier for buyers to visualize because buyers can actually walk through them.
I consider myself a representative of the transaction. I market the builders to the public, which is a service they want and need, and I provide as much information as I can possibly gather to the buyers, which is a service the buyers really appreciate. I do not favor one builder over another, and I stress to the buyers that all other things being equal, they should pick the builder that they establish the best rapport with. I tell them "We're going to be married to this builder for 6 months or so, so we should pick the one we're most compatible with." I stress the "WE" part, because many buyers are intimidated by the entire process, and it helps them to know they have experience in their corner. Each builder I work with builds in a different price range and style, so they rarely compete with each other directly. I encourage the buyers to work as closely with the builder as possible, but I assure them that I am always available to mediate if there is ever a breakdown in communication. Surprisingly, when I'm asked to mediate, it's usually a communication problem between spouses, rather than between buyers and builder. The Certified New Home SpecialistTM Training Program is right on target when it stresses communication. We generally get through this by sitting down and writing a list of the things they're happy with and the things they'd like to change. Frequently, the positive list is much longer than the negative. Any trends in new homes? Features or amenities that buyers are looking for? My community attracts a lot of baby boomers, and I've noticed a trend toward more open floor plans, and comfort features like raised bathroom vanities and walk-in showers. Sprawling ranchers are popular in this area, but we can’t give away multi-level homes. How did you find your builders and convince them that they need your services? It was slow at first. A lot of builders think they can sell their own houses, and they do a fairly decent job, but they don't do a great job, and there's no shame in that. They're builders, not marketers, and they can be okay at both sides of the business, or they can be great at one side of the business. When I started, I bought a couple of undesirable (read: cheap) vacant lots and offered to sell them on terms to a couple of fairly new builders who were not working with an agent yet. In effect, I was investing in their companies, and not only would I not earn a commission if I didn't perform, but my personal investment in the land was at risk. Those homes were sold before they were finished. I had proven my abilities to the builders, and earned their loyalty. In another case, I compared my fee for selling a new home with the cost of construction financing on a home that sat on the market too long. Everybody understands the benefit of a bigger bottom line. In your email you wrote, “I've received referrals from past clients who rave about how easy it was to build their dream home with my help!” What specific things do you do to make it easy for your clients throughout the new home buying process? As I mentioned earlier, I provide as much information up front as possible. I provide virtual tours of completed homes in the event a model is not available to walk through. I read construction trade magazines like the "Journal of Light Construction” to keep abreast of new products and methods being used in other areas. Most importantly, from Day One I manage the buyers' expectations. I help them choose a builder and a home that fits their budget, and I point out the hidden extras that really add up. There are models advertised by other companies at a low teaser price, but the buyers find out after construction begins that the allowances for cabinets, countertops, appliances, etc. are unrealistically low and they have to compromise quality to stay within their budget. By managing those expectations in the beginning, I'm able to focus their attention on the items most important to them in the beginning so there are no surprises down the road. In your email you wrote, “I've implemented Dennis' suggestions on three occasions in the past month, and in two of those cases, the buyers were so impressed by our worksheets and schedules they signed on the spot!” Can you briefly elaborate on some of the suggestions that you have implemented? I was writing about the scheduling worksheets that were provided in the CNHS Toolbox™. When I first read about them, I knew I could make good use of them. There are so many things to worry about when building a home, like "when should be pick our cabinets," "when will the walls be framed," "how much time do we have to pick out the color of roofing materials." The worksheets simplified the process tremendously and reduced everyone's stress levels. There are so many systems involved in building a new home, it's easy to overlook something until the last minute, then the buyer has to rush out and pick out a color or style on the spur of the moment. With the checklist and timing charts, we were able to tell the buyers, "take your time, you have three weeks to pick out...we don't need your flooring choices until...." Sounds like you knew a lot about new home sales before you took the CNHS training course. What made you take the training? I did know a little about the construction process, but I didn't feel that I was reaching my full potential. I think the certification adds credibility to what I'm doing, and sets me apart from the other agents. If you were building a new house in a new town, would you pick the "Certified New Home Specialist™" or one of the other 130 agents in town? Any final advice for those looking to get into new home sales? The payoff is far from immediate. Sell a house today, and you can expect to get paid in 4 to 6 months. Building a home can be the best or worst experience in the buyer's lifetime. If you can make it an enjoyable and relatively stress-free experience, eventually, the pipeline will fill and you'll have more business than you know what to do with. |
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Dennis
Walsh & Associates, Inc. Website
Design, Graphics, Product Logos and Product Interfaces |
