When showing new construction to interested buyers, the first step of the purchasing process is very important. The easiest way to encourage nervous buyers to pull that trigger is to not require a deposit with the reservation. Our reservations are good for 30 days with no funds paid up front, and during that period, the buyers will have the opportunity to meet with the builder, have their questions answered, walk through the model home (if there is one) with the builder and meet with all of the suppliers. This reservation will take a property off the market for that period of time. This gives the buyers time to firmly decide if they want to go forth and sign a purchase and sales agreement and pay a 10% deposit, at that time.
My team members have a very good track record for converting reservations into a signed purchase and sales agreement. That initial reservation without a deposit allows both the buyer and the builder the ability to either cancel or firm up a potential sale. Buyers like this method because there is no pressure to buy because there are no funds paid. Remember, the builder can walk from the deal also, if he feels their personalities do not mesh. If the builder and the buyer are not compatible, it makes sense that the transaction not happen.
Signing that initial reservation form is a very important part of the potential transaction. New construction is a complex entity to sell, especially when the dwelling is not constructed and all you are showing is dirt and a set of plans. It's one step at a time and all parties need to be very comfortable working with each other. The first meeting is a critical one and provides a good indication of the potential for a successful transaction.