TOURING NEW HOMES HAS BECOME FUN AGAIN.
The years 2001 through 2005 were tough on agents who like selling new homes.
We have been snubbed by new home builders.
We have been ignored by new home builders.
We have been starved by new home builders.
We have been forced to sell resale homes by new home builders.
In short, those years of uncontrolled price escalation and low interest rates for real estate resulted in new home builders
deciding that:
They didn't need us any more.
They wouldn't pay us for introducing buyers to their home sites.
They would pay us up to 1/3 or 1/6th of the fee that they had paid in past years.
Builders didn't consider that we often research for buyers, contact buyers for months, drive buyers
around for days or weeks looking at new and resale before the buyer decides what to buy, IF they
buy at all. Of course, if they don't buy, our time has earned us little more than some experience
and knowledge of inventory, which is easy enough to do in times when we don't have buyers in tow.
But, when working on contingency, we accept that risk. What we don't accept is being treated like
an ugly duckling when times are very, very good for new home builders.
Resale owners weren't much better. Remember the days of "Contracts presented a week from
Wednesday at 8:00 p.m." "Fax your best offer." "Pre-approved buyers only." Buyers agents fees
about 2/3 what they have been for the past 35 years. No showings until after the listing agents does
an Open House next Sunday. Yes, we buyers agents suffered insult on top of injury, to our schedules,
our pocketbook, and often our pride. Yes, we were treated like the ugly ducklings by home owners
and a few listing agents, too.
"IT'S JUST BUSINESS", they all said.
WELL, THE UGLY DUCKING TURNED INTO A BEAUTIFUL SWAN. 
Buyers have now put their foot down and said "Give us a good deal or we will wait."
Are home owners giving buyers a good deal? NO!
Are listing agents giving buyers any help with realistic pricing recommendation? NO!
NEW HOME BUILDERS have seen the red ink and decided to do what they have to do to sell homes. Square foot comparisons are about equal for price, lot, etc. The big difference is age of the home and INCENTIVES.
Are new home builders giving us anything? YES, INDEED! ! ! New home builders have seen the light, or seen the red ink and have decided to bring those buyers back out and if they have an agent in tow, the agent is treated with a smile. Yes, a smile. No more being ignored when you go in for information. No more being told that they only have brochures for agents who have buyers with them.
Previewing for my buyer last week in Western Loudoun County was a forgotten experience. The builder's rep smiles when I come in to preview. They take my card and smile again. They offer me a brochure - with a smile. They offer to tour the home with me so I know what the upgrades in the model are with a smile. They register my buyer for me without the buyer present. Not a problem they say with a smile.
Touring with a new home buyers yesterday was FUN. We're looking at homes priced from $550,000
to $700,000.
"What's the cost of the fireplace in the Family Room?" "STANDARD"
"How much would that Sun Room cost?" "STANDARD"
"What would it cost to finish the basement?" "1,500 square feet STANDARD"
"Can I get a brick front like this house?" "STANDARD"
On and on and on, STANDARD, STANDARD, STANDARD.
Oh, and $40,000 towards structural upgrades and designer option.
Oh, and $20,000 towards closing.
It's like coming home.
What will my buyer get for $700,000 in a new home?- The buyers will get a new home.
- The builder will pay about 9% in incentives
- The buyers will get a new home.
- The buyers will get 9% in structural upgrades.
- The buyers will get a new home.
- The buyers will get a 10 year structural warranty.
- The buyers will get a new home.
- The buyers will get all new appliances.
THE BUYERS WILL GET A NEW HOME
Courtesy: Homefinders.com
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