New Construction Transactions From Heaven Or From Hell???

By
Managing Real Estate Broker with RE/MAX Executive Realty

When showing new construction to interested buyers, the first step of the purchasing process is very important.  The easiest way to encourage nervous buyers to pull that trigger is to not require a deposit with the reservation.  Our reservations are good for 30 days with no funds paid up front, and during that period, the buyers will have the opportunity to meet with the builder, have their questions answered, walk through the model home (if there is one) with the builder and meet with all of the suppliers.  This reservation will take a property off the market for that period of time.  This gives the buyers time to firmly decide if they want to go forth and sign a purchase and sales agreement and pay a 10% deposit, at that time. 

My team members have a very good track record for converting reservations into a signed purchase and sales agreement.  That initial reservation without a deposit allows both the buyer and the builder the ability to either cancel or firm up a potential sale.  Buyers like this method because there is no pressure to buy because there are no funds paid.  Remember, the builder can walk from the deal also, if he feels their personalities do not mesh.  If the builder and the buyer are not compatible, it makes sense that the transaction not happen. 

Signing that initial reservation form is a very important part of the potential transaction.  New construction is a complex entity to sell, especially when the dwelling is not constructed and all you are showing is dirt and a set of plans.  It's one step at a time and all parties need to be very comfortable working with each other.  The first meeting is a critical one and provides a good indication of the potential for a successful transaction.

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Topic:
Home Buying
Location:
Massachusetts Norfolk County Franklin
Groups:
Active Rain Newbies
MA REALTORS
New Home Sales
RE/MAX Active Rain Bloggers
Women And Their Business Hear The Roar
Tags:
selling new construction in franklin ma02038
new homes sales franklin ma02038
homes for sale franklin ma02038

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Rainmaker
1,824,192
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Dennis....the key to that is there is a clause that says EITHER party can back out with no recourse....works the same as ours but we don't go through the steps of collecting money....why bother??

April 08, 2010 08:29 AM
Rainmaker
770,483
Paula McDonald
RE/MAX The Woodlands, TX 936-203-0279
Chevaux Group, PLLC

As always Barbara, great information in your post.  Our builders down here require a hold deposit which does make buyers very nervous.  In light of the recent market however, I believe this policy might change.

April 08, 2010 10:22 AM
Rainmaker
1,824,192
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Paula....my builders have always worked this way on my recommendation....their legal counsel like this method also....no money is exchanged until the p&s is signed.....when buyers have their selection of homes narrowed down to ours and another, we will win 99% of the time because of the "no pressure" method of doing business....it really is a novelty to most buyers and they appreciate it.

April 08, 2010 11:01 AM
Ambassador
555,286
Julie Chapman
New Homes Sales

featured post new homes sale group - homes brunswick gaFeatured Post in New Homes Sales Group

Congratulations on this featured post in the New Home Sales Group.  Thanks for your contributions. 

 

April 09, 2010 06:51 AM
Rainmaker
1,824,192
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Thank you, Julie....

April 10, 2010 01:57 AM
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Rainmaker
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Barbara Todaro

"New Franklin MA Homes"
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Additional Information

The Kuney-Todaro Team is the "#1 team in Franklin's #1 office." Our expertise is in marketing new construction and resale properties. New construction is our niche and we have sold 40 subdivisions in the area of Franklin MA.