To Show Or Not To Show.....That Is The Question!!

By
Managing Real Estate Broker with RE/MAX Executive Realty

Do you avoid showing new construction because you are intimidated by this product?  Some agents have had no exposure to new construction, and I consider this to be a large gap in ones income.  New construction is probably one of the easiest sales in which a buyers' agent can participate.

The product has a warranty written into the agreement.  There is usually flexibility in the design and decor, and that easily satisfies most buyers.  There is usually no amenity that can't be added to the new construction equation.  If the product is pre-construction, there is usually flexibility in all phases of construction with the exception of placement, if there is no public sewer.  The placement is dictated by the placement of the septic system.  The only fixed factor is the location

New agents should familiarize themselves with the location of the various subdivisions in their area.  Whenever that agent has an opportunity to show new construction, the buyers' agent should call the listing agent just to confirm that the listing agent would be available in the future to accompany and meet, if there is interest by the buyer.  That confirmatory phone call to an agent who is a novice with new construction will be a relief and make the showing more manageable.  It is intimidating to an agent who does not have experience with this entity, and not all listing agents will agree to accompany or meet prior to a reservation.  The elimination of that one step can make or break a deal for a new agent or one with no experience with this product.

It's the listing agent's job to promote the product for the builder and to encourage other agents to show the product.  Listing new construction is very time consuming and sometimes intense, if done properly.  The goal of the listing agent of new construction is not to sell the product herself, it's to sell the product, period.  Selling new construction is a form of teaching. It involves sharing information and more often than not, leading the way for agents who are in their infancy stage with this product. 

Once an agent has experienced a properly orchestrated new construction transaction, it will become very desirable.  New construction will then constitute a large portion of your annual income.  You may actually graduate to the next level and find some land and your own builder.  It's well worth the effort, and the butterflies will disappear!!!

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Duane Murphy 04/27/2010 10:40 AM
  2. Susan Morrison 04/27/2010 01:13 PM
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Topic:
Real Estate General Information
Location:
Massachusetts Norfolk County Franklin
Groups:
Active Rain Newbies
New Home Sales
Posts to Localism
RE/MAX Active Rain Bloggers
Women And Their Business Hear The Roar
Tags:
new construction sales
listing agents and new construction

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Ambassador
1,803,154
Jeff Dowler CRS
Carlsbad CA Homes for Sale (760) 840-1360
Solutions Real Estate

Most of the new construction in my area tends to be the big home builders who have agents on their staff to handle the listing side. With one exception in teh 5 years I have been here, they all cooperate with buyer agents. One new development right now is not - very surprising, but perhaps with the tax credit adn improved sales they don;t feel they need to.

Jeff

April 27, 2010 10:24 AM
Rainmaker
1,930,968
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Jeff....that's a big mistake on their part....I've seen many subdivisions that are handled by agents and their focus is to sell the listings themselves.....they are missing showings from new agents, in my opinion.

April 27, 2010 10:28 AM
Rainmaker
839,534
Joshua Zargari
MJ Decorators Workshop
MJ Decorators Workshop LI staging and home decorating

Barbara! I think it is easier to show new homes that are empty than none...

April 27, 2010 10:35 AM
Ambassador
1,440,039
Karen Kruschka
- "My Experience Isn't Expensive - It's PRICELESS"
RE/MAX Real Estate Connections

Barbara  I have no problem showiing neew homes, but I do counsel my buyers on any I believe to be of low quality

April 27, 2010 10:47 AM
Rainmaker
1,930,968
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Joshua....new construction is an easy product to sell.....

April 27, 2010 10:52 AM
Rainmaker
1,930,968
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Karen.....and you should do that as a buyers agent.....as a listing agent, I don't take listings that are low quality.....there are too many good products out there to settle for an inferior product to market.

April 27, 2010 10:54 AM
Ambassador
1,139,676
Paul Henderson
I always put my clients first in any transaction!
RE/MAX Professionals.

No I am never intimidated by the product, just some of the small print irritates me. Our state approved real estate forms are for the consumer's protection. Builders forms, I have found, limit the liability of the builder in some cases. What is good for an out of state corporation is not always good for my client.
Have you noticed any difference from those new servers yet?
Paul

April 27, 2010 11:18 AM
Rainmaker
1,930,968
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Paul....I think there are many NEW agents who are very intimidated by the product....and as far as the server, you will never hear a complaint from me....just as one of your posts stated, when you are without, it makes you thankful for having a site even with proxy errors....I love proxy errors....it's better than no site at all!!!

April 27, 2010 11:51 AM
Rainmaker
776,333
Richard Weeks
Realtor, Associate Broker - Manager Business Development
Waller Group
Barbara, Would this not be a form of reverse steering. To me it is the buyers choice which homes we will view.
April 27, 2010 12:46 PM
Rainmaker
1,930,968
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

If a buyer wants to see new construction, wouldn't you show everything that's available within that buyers price range in the marketplace?? if the buyer does not specify new or resale, wouldn't you show them a sample of both?? some agents have never shown new construction....that's the point I'm trying to make....if the agent does not feel comfortable showing that entity, call the listing agent and ask to be accompanied....reverse steering???????

April 27, 2010 01:44 PM
Rainmaker
1,387,672
Roger D. Mucci
Lets shake things up at your home today!
Shaken...with a Twist 216.633.2092

Great advice to new agents Barbara, you're the bomb!

April 27, 2010 05:38 PM
Rainmaker
1,930,968
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

thanks, Roger....not sure about the bomb!!!!

April 27, 2010 07:06 PM
Anonymous #13
Anonymous
Anonymous

Why do you want the butterflies to disappear? They are so beautiful! LOL

Butterflies are beautiful!

April 27, 2010 07:22 PM
Rainmaker
882,016
Jane Peters
Connecting you to the L.A. real estate scene
Power Brokers Int'l

The only thing that is intimidating to me about new construction is the seller using their contract.  I saw one once and it was full of red flags.  My buyer flaked out but it would have required an attorney going over the contract.  California has a tax credit starting up May 1.  $10,000 for the purchaser of a previously unoccupied home.  There is only $100M allocated and it should be used up in 3 weeks.  Good way to get help the builders reduce their inventory.

April 27, 2010 10:19 PM
Rainmaker
1,930,968
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Russel....that butterfly is beautiful.....

April 28, 2010 05:27 AM
Rainmaker
1,930,968
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Jane.....sounds like you'll be very busy for the month of May....we all need Arnold.

April 28, 2010 05:29 AM
Rainmaker
780,343
Paula McDonald
CHEVAUX Group ~ The Woodlands, TX 936-203-0279
Chevaux Group, PLLC

I love selling new construction any chance I get.  I have had good experiences with most of the new home salespeople and find they are anxious to work with REALTORS.  Just make sure you have your client registered with them!

April 28, 2010 08:13 AM
Rainmaker
1,930,968
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Paula.....glad to hear you that....we do not require registration.....we just want the buyer to buy....it doesn't matter to us who the buyer uses for an agent.....if the buyer likes the property we suggest that they call their agent and have another showing with their agent present....sometimes WE call their agent so the agent will follow up with the buyer!!!

April 28, 2010 08:45 AM
Rainmaker
85,701
Margo Otey
REMAX EXECUTIVE REALTY

I think some agents DO avoid new construction, but the reason may have more to do with the long wait for a paycheck vs. feeling uneasy about the product! Oops, my cynicism is showing...have to tuck that in...

April 28, 2010 02:22 PM
Rainmaker
1,930,968
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Margo....I'm sure some do avoid it to get the quick paycheck....however, some buyers want new not resale and then they have to step up to the plate and sell something they may not be comfortable with....forget the nip and tuck....sever it.

April 28, 2010 04:30 PM
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Rainmaker
1,930,968

Barbara Todaro

"New Franklin MA Homes"
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