Written by Dennis Walsh of Dennis Walsh and Associates

Now and then I remember back to the days when I was a young boy enjoying sunny days at my grandfather's lake. I can also remember standing by his side one day as he worked to get my fishing pole set for me to take a stab at reeling in the biggest fish in the lake. Just before we climbed into the boat together, he paused to share with me one of the greatest secrets of success -- the "Golden Rule of Fishing".

"It's as simple as this ..." my grandfather explained, "if you want to catch fish, you have to fish where the fish are."

He was right - that is simple, but it's also powerful advice. It's important to have all the right gear and all the skills to catch a fish, but if you don't fish where the fish are, you're wasting your time and effort.

The same holds true in the business of real estate. We're fishing all the time.

One type of fish we're after are real buyers - ready, willing and able to actually buy a home. In some markets, these fish are first-time buyers, typically renters, who are not faced with concerns about the selling an existing home. Another possibility is identifying move-up buyers who are willing and able to price their existing home for a quick sale - allowing them to take advantage of a tremendous deal on another home that better suits their tastes and needs.

Another type of fish we're looking for are those sellers who are seriously motivated - ready, willing and able to price it right and get it sold. Although there's an abundance of "sellers" out there, finding those who will to come to market at a truly competitive price is still a challenge.

So where else to fish? The great news for many of us that we have some well-stocked ponds right around the corner - new home communities! In many markets from coast-to-coast there's an inventory of brand new homes available from extremely motivated sellers. Whether large builders with hundreds of homes on the books, or small builders with only a few ... these homes have to be moved. Even one unsold home on the books is too many for a small builder.  Not only are these new homes priced to sell, they typically offer excellent designs, great locations, the latest features, materials, and equipment along with brand new product warranties. For most of those buyers seriously in the market, these brand new homes are the homes they want to buy.

What's important to recognize is that developing your expertise in new home sales offers not only short term business, but long-term opportunities as well.

Ken Culbertson, CNHS, RCC of Coldwell Banker Elite in Mount Laurel, NJ agrees:

"I began working as a new home buyer specialist," Ken explains, "and soon had builders asking me to take over their sales and marketing. We're successfully growing our new home division as we continue to take advantage of these opportunities."

Keep in mind that as new home inventories continue to level off, builders are eager to get back to the business of building. This has already begun in many markets. Falling land prices and construction costs will allow them to come to market with brand new homes at extremely competitive price points. Will you be positioned to help them market and sell these homes?

While some stand on the shore waiting for fish to swim to them, you can get out on the water and make sure you're fishing where the fish are. Armed with the right tools, skills and knowledge, you can join those who are well-positioned to enjoy these opportunities for sales success both today and tomorrow.

Based in Newport Beach, CA, Dennis Walsh & Associates, Inc. is recognized as a leading source for training and sales tools for success in both new home sales and resale real estate business. More than 70,000 real estate professionals have enjoyed Dennis' presentations including his Certified New Home Specialist^TM and Residential Construction Certified^TM designation courses. For more information, visit www.sellnewhomes.com or call 800.428.122.

Listing another large Subdivision is always a goal - however I truly enjoy working with buyers when it comes to finding their new construction home.

Whether a buyer is looking to custom build, buy a "spec"  home, or work with a builders plans, it is extremely valuable to work with an agent who has experience with selling such properties. Experience is when that agent has worked with a variety of builders, house styles, and financing terms. Furthermore, that agent should understand the build process, construction terminology, which deadlines need to be met, and blueprints, before considering themself a new construction specialist. 

Buying a new home can be an overwhelming task when you do not have proper representation. Builders' Representatives are there to negotiate for and support the builders best interests. While most builders' reps are helpful to buyers, I have found that oftentimes, unless asked specific questions, many questions can be left unanswered. 

Working with a qualified new home specialist can save a lot of aggrevation and money. Communication is key when building a house, and having a professional monitor the process and make certain all parts to the contract are being upheld is very important for managing a smooth tranaction. Also, having a buyer agent properly negotiate the terms, upgrades and specs can save you lots of money. 

 If you would like to learn more about the benefits a new construction buyer represnative can give you, please feel free to contact me at 856-430-8250. Thank You!

 Ken Culbertson - Certified New Home Specialist

A typical homeowner who is looking to move up in the real estate world will typically spend about 25% more on the home they are purchasing. For example, a home owner who is selling a $285,000 will then be looking to buy a home worth approximately $355,000. 

Now think about this - if you are in a down market and the property values have come down about 10%, that would mean your home once vauled at $316,600 (which is now $285,000) has lost about $31,000 in value. However, the home you are planning to purchase for about $355,000 was once worth about $394,500, and has experienced a loss of about $44,500.

Furthermore, if you choose to wait until the market begins rising, then the more expensive home will rise by more dollars than your existing home - therefore you will not experience as much of an equity gain if you stay put until the upswing has already begun.

Consider This! This is a great time to buy new construction. Buyers are realizing even more benefits when purchasing new construction because many builders have not only cut prices by the areas market price declines, but they are also willing to include more options as incentives because they can do so at a reduced cost to themself - delivering a greater benfit to the buyer - for instance, a typical $3500 fireplace upgrade may actually only cost the builder $2,500 - thus the builder is giving up less than the buyer is actually gaining. This becomes a win-win incentive program.

If you have any comments on this Blog, please present your comments. If you are interested in long-term equity growth, don't hesitate to call me at the office which is 856-222-9030.