Selling new construction: what Buyers agents need to know
Selling new construction homes is a great way to expand your real estate business. But buying from a builder is quite different than helping clients buy a resale home. What should Buyers agents look for when helping prospects purchase a new construction home? Today, we’ll show you the key differences in selling new construction, how Buyers agents can partner with builders, how to help Buyers find their perfect property, and more.
Buyers agents should spend time learning about the new construction market
Real estate agents who want to help Buyers purchase new construction homes should make sure they understand the uniqueness of new construction homes. Here are a few things to know before you help your clients purchase a new construction home.
- Residential construction methods
- Exterior and interior construction materials, such as siding types and flooring types
- Architectural design elements
- How to read blueprints
- Builder contracts, especially as they pertain to your Buyer’s rights
If possible, find an experienced Buyers agent representing clients like yours whom you can shadow. Getting this type of first-hand experience will fast-track your knowledge and expertise in the new construction niche. It will also help you network with other experts.
Consider partnering with a builder to help them sell new homes
Many of the most effective new construction agents build mutually beneficial partnerships with builders. Some agents have even built their entire career working for builders. But note that certain construction companies may ask you to put your real estate license in inactive status to avoid potential conflicts of interest if you choose to work for them.
In cases like these, you’ll have to weigh the pros and cons. In short, are you an agent representing homeowners or an agent representing home builders?
Expect to help your Buyer negotiate
One of the biggest reasons Buyers look for agent representation is negotiation. Purchasing new construction is a big ask, and Buyers will want to make sure they’re getting the best deal. But builder’s sales team might imply that the final price of the home isn’t up for negotiation. That can make getting the best deal challenging for Buyers. Fortunately, negotiation isn’t always off the table.
Even if the builder refuses to budge on the price, you can still negotiate throughout the process of home buying. It’s not uncommon for the builder to agree to upgrades in materials or landscaping, or to pay the Buyer’s closing costs. The best deal is in the eye of your Buyer, so take extra steps to coordinate their interests when helping them buy new construction.
Remember why new home Buyers need a buyers agent’s expertise
Some Buyers think that purchasing a new construction home is as simple as walking into the sales office, choosing a lot and floor plan, and signing the necessary paperwork. However, new construction transactions are more complicated than that, especially for Buyers looking for the best deal.
Additionally, no one on the builder’s team is specifically tasked with representing the Buyer and their needs. From sales representatives to employees of the construction company, these people have a responsibility to represent the builder and get the best deal for the builder. That’s why it’s so important for you to communicate the importance of agent representation.
It’s your job to educate buyers on the benefits of working with an expert whose primary objective is to protect their best interests. Point out the perks of partnering with a real estate agent who does the following:
- Makes sure the builder contract outlines the Buyer’s rights, including the deadline for termination of the contract without losing deposit monies.
- Knows how to get the best deal by securing more inclusions and other incentives from the builder.
- Is skilled at analyzing floor plans, blueprints, soil surveys, and other important information, which makes home buying much simpler.
It’s easy for Buyers to feel overwhelmed when buying a new construction home. Home buying is always a challenge, but as a Buyers agent, you can make buying new construction much easier for your clients. By understanding the nuances of purchasing new construction, you can help your Buyers get the best deal on a new construction home of their dreams.
But purchasing a new construction home can bring a false sense of security for homeowners, especially for homes with brand-new systems and appliances. Unfortunately, they aren’t immune to breakdowns, which can turn a dream home into a nightmare.
In addition to providing quality agent representation, you can go the extra mile. Showcase your value by ensuring your Buyers are protected with a systems and appliances home warranty from 2-10 Home Buyers Warranty (2-10 HBW). A home warranty can reduce the time and cost to address unexpected breakdowns in their new construction home. When you have solutions to unexpected problems, your clients will be more likely to recommend you to others.
2-10 HBW offers comprehensive Systems and Appliances Home Warranties to help protect your clients from unexpected repair and replacement costs. Contact us to learn more.