Buying a new home is a complex process. It takes a lot of people to make it happen! Real estate brokers who specialize in new construction home sales have an opportunity to grow their business. However, this field differs from resale real estate and has unique challenges.
Negotiate on Your Client’s Behalf
In new construction sales, real estate agents can negotiate upgrades that wouldn’t be possible in the resale market. They can also help their clients with paperwork and interpret blueprints, soil surveys, and engineering reports. Builder sales brokerage often has relationships with preferred lenders and can pass on perks like credit towards closing costs. They also understand how commissions are structured in the new construction world and can ensure they get their fair share.
As with resale homes, new construction buyers can be swayed by incentives from builders, like free appliances or extended warranties. An excellent real estate agent can weigh these offers against the builder’s contract and negotiate for their client’s best interests. They can also help their clients set realistic expectations regarding delivery times and negotiate exit options should timeframes be exceeded.
Educate Your Clients
Broker agents should know various topics to serve clients well in new construction sales. It includes supply and demand, new construction neighborhoods, and builders in their area. They should also understand construction timelines, contract terms, inspections, insurance needs, and the difference between a new construction home and an existing property regarding real estate contracts, contingencies, and warranties.
It is also essential for brokers to know if a builder offers buyer incentives, as these can significantly impact a sale. Additionally, they should be familiar with local lenders who can best service a new construction loan. Create a plan to visit five new construction neighborhoods per day for at least five business days to familiarize yourself with the product.
Market Your Client’s Property
New construction is a unique market that requires specialized marketing. Real estate brokers can leverage their knowledge of the community and local market to develop targeted marketing campaigns to generate interest in newly constructed homes. Brokers can also help their clients understand and negotiate builder contracts that may contain language that might be misleading to buyers. Understanding how these contracts impact earnest money, deadlines, and post-inspection repairs is essential for a successful transaction. A buyer’s agent will stay invested in the process until their client is handed the keys to their dream home. They can provide valuable insights into the building process and ensure their client’s best interests are met throughout the home-buying journey.
Keep Your Clients Updated
As a new construction broker, keeping in touch with clients is essential. It may include scheduling walkthroughs or sending a weekly information email about the progress of their neighborhood. It also involves managing client expectations about timelines and budgets. Closing on a new construction home can take several months, so brokers must ensure their clients stay informed and on track. Some buyers think working directly with the builder’s sales agent is cheaper, but that can be a huge mistake. Accompanying their client in negotiating a better price on one of their most significant investments is a buyer’s agent, who has a fiduciary duty to represent their client’s interests.
Real estate agents are uniquely positioned to approach builders to ask for their business. They can earn a reputation as trusted professionals by offering representation and guidance through the building process.
Stay in Touch
A builder sales broker works to protect their client’s interests and provide a thorough understanding of the new construction process. They also manage their client’s expectations and mediate inevitable misunderstandings. They communicate with their clients during construction to ensure everything is going according to plan. In addition, they are familiar with the local builders’ preferred lenders and can recommend a lender that best fits their clients’ financial goals. New construction real estate agents work in a unique niche that requires a different skill set than traditional real estate. For individuals interested in this emerging and fascinating industry, a rewarding career path can be found as a builder sales broker.
