The Importance of Creating Balanced Inventory

By
Managing Real Estate Broker with RE/MAX Executive Realty

In evaluating production for agents in my area, the agents who have new construction in their inventory are the agents whose production sets the pace in our marketplace.  Just as a density concept is the most financially beneficial for a builder to utilize when developing a tract of land, it is also beneficial for real estate agents to work in that same manner.  The more listings an agent has in his or her inventory, the better the chance of producing income in direct proportion.  I have always been a proponent of maintaining multiple subdivisions and filling in the gaps with resale listings. 

The resale listings will carry you through the construction period of the new home sale.  It generally takes between 120 days to as many as 240 days depending on the magnitude of the home, to finalize construction.  That's a long time to be void in income.  Resale properties provide nice fillers for that period of time.  The 30 to 60 day resale closings will carry an agent through construction.  However, to rely solely on resale properties is no more advantageous than relying solely on new construction.  There are not enough resale listings to maintain an acceptable standard of income, and the construction period of new homes takes too long to just rely on those sales. 

A proper mix with the right variety of property is the solution to this potential income problem.  Get involved with new construction and bring balance to your real estate career. 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
Massachusetts Norfolk County Franklin
Groups:
Active Rain Newbies
MA REALTORS
Posts to Localism
RE/MAX Active Rain Bloggers
Women And Their Business Hear The Roar
Tags:
balanced real estate inventory
new construction and resale properties

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the key to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Ambassador
1,664,077
Richard Weisser
Better Homes and Gardens Real Estate Metro Brokers - Newnan, GA
Richard Weisser Coweta Newnan Homes for Sale

Barbara...

Right now, my mix seems to be selling. But we don't do many new homes around here anymore.

Mar 15, 2010 04:09 PM #1
Rainmaker
2,016,511
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"New Franklin MA Homes"

What's the reason for that, Richard?? we don't have many large parcels so we do density concepts....we can fit 40 to 50 homes on 10 acres with a density concept.

Mar 15, 2010 04:15 PM #2
Rainmaker
895,090
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Like Richard, unfortunately the new home market is limited and pretty much tied up.  But then we have a lot more resales than you do.

Mar 15, 2010 10:17 PM #3
Rainer
120,167
Brenda Carus
Century 21 Zwygart Real Estate - Monroe, WI

I think this is one of those things that emphasizes how local the real estate market actually is.  Around here, there is very little in the way of new construction sales.  We sell lots on which a buyer will build a home with a builder of their choice and we sell existing homes, but actual new construction sales are rare.  We are a rural area, and that likely makes all the difference in the world.

Mar 15, 2010 10:21 PM #4
Rainmaker
2,016,511
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"New Franklin MA Homes"

Jane....I'm sure you have many more resales, homes and condos.....

Brenda....we don't have many large parcels left.....they've been developed....

Mar 16, 2010 04:56 AM #5
Rainmaker
1,657,190
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Good morning Barbara,

A balance is always best. In marketing my goal has always been to be more heavy on listings~good quality resale listings~they are my backbone of my business in my community..I always have buyers that come from my listings or past clients, personal referral or relocation clients. My business plan serves me well and keeps me on track. Our community is built out now and has been for 3 years..no more land..our resale prices are good because no longer competing with the builder.

Mar 16, 2010 07:11 AM #6
Rainmaker
2,016,511
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"New Franklin MA Homes"

Dorie.....we're approaching that "no more land" situation here.....but I won't see it in my lifetime.....we still have parcels for density concepts....

Mar 16, 2010 07:18 AM #7
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
2,016,511

Barbara Todaro

"New Franklin MA Homes"
Ask Barbara Todaro a question...
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pants to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information