In an ever-changing market where buyers know what they want and what they ‘deserve’, new construction homes offer a vast area of opportunity for Realtors. While fundamental Realtor training focuses on MLS as the primary source of inventory, many are choosing to diversify their industry knowledge, client base and source of revenue, by selling new construction in addition to traditional resale.
To transition into new construction, Realtors must first understand the unique processes and benefits of working directly with a homebuilder. Demystify the new construction process so that you can set yourself apart from the competition with these selling tips from Beazer Homes Houston’s President Bruce Craig.
Get the best deal
With all new homes, there is a negotiation period that occurs between the buyer and the homebuilder. While incentives will vary by builder and community, it’s safe to say that a Realtor can leverage their negotiating skills to help their buyer “get the best deal.” Once an offer has been approved, homebuilders require buyers to attain a loan pre-approval letter from a qualified mortgage lender with every purchase agreement. The purchase agreement, addenda, and various documents constitute the legal understanding regarding the purchase of a new home. The builder will then ratify the document to make it official, typically within five days.
Stay involved, or don’t
Establishing relationships with a builder’s on-site agents is a great way to split the workload. We believe Realtors should have the flexibility to be as hands-on or hands-off throughout the homebuilding process as they desire. Through our New Home Counselors (NHCs) send weekly updates to the buyer and/or Realtor to maintain open communication throughout the construction process. If a Realtor needs specific information on an area or particular community, many new home builders have internet consultants to do the digging for you.
Boast the benefits
New construction offers a ton of benefits and options for buyers that resale simply cannot. Clients who choose to build new are able to truly personalize their spaces. New construction offers a variety of floorplan and elevation designs that resonate with a broad range of buyers, encompassing the latest designs and styles with optimized functionality. Most new home builders have a Design Studio, where consultants work with buyers to guide them through their design selections in an individual consultation. Realtors are invited to attend these appointments to be a part of one of the more exciting parts of the new home building process.
New home buyers also enjoy the benefit of energy efficiency, which has become more of an expectation than a desire. Many new home builders build energy-efficient homes, lowering monthly utility costs and lessening harmful environmental effects.
Collect your check
In Beazer’s Houston division, a standard 3 percent commission is paid to the Realtor after the home closes. Commission is also paid based on the final home price, meaning the grand total including options and design selections. Realtor incentives vary per builder, so it’s important to communicate up front so you know what your final payout will be. It is key to note that the agent must be present to be included on the contract. To protect our agents and maintain strong relationships, once a contract is ratified, no changes may be made to the Realtor listed.
Invest in inventory
While the tips above focus on to-be-built homes on empty lots, it’s important to remember most new communities also offer inventory or quick move-in homes. Inventory homes appear on MLS and across builder websites, providing yet another source of revenue within the new construction category. These homes are perfect for clients with an expedited timeline who don’t mind pre-selected finishes, as long as they are high-quality and high-style. There are number of high-quality new home builders throughout the Houston area that would love to earn your business. As your partners in the industry, we all have the best interest of your clients at hand and will work hard to build them their new dream home.