Generally I list my builders new construction before the footing is poured.  I keep a house plan in my office and several times homes have been sold before construction.  The problem is when a new construction is listed, takes six months or longer to build, and the days on the market are misleading.  The home is not finished so the days on the market would be longer! 

 I'm talking about a stable market here, not one where the builder is trying to unload 75 homes and is on the edge of bankruptcy!  Don't think the builder in a stable market  is going to take a 25% reduction, just because you think it has been on the market a long time!  Educate your buyers that the days are not accurate because the builder did not have the home finished. 

Selling new construction is not the same as selling residential homes.  Builders get upset when they are presented an offer that is $40,000 off the listed price!  What agent would list a home and price it $40,000 higher?  Give me a break!  Builders generally have an appraisal on the home they are building, they know what it is worth. 

Please, the next time your buyers ask, "How long has it been on the market?" educate them that the days are not accurate.

 

I am a Realtor with RE/MAX Advantage Realtors in Searcy, Arkansas.  I love working with builders!

                                                   http://maryjpaul.com

 

 

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12 Comments on REALTORS, DAYS ON THE MARKET ARE NOT ACCURATE ON NEW CONSTRUCTION!

Good point, Mary.  Some buyers also need to be educated that although the market may be slow, there is still not blood in the streets (thank goodness).

04/04/2008 01:03 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)


Brian,

I totally agree!  Thanks for the response.  Have a great week end! 

04/04/2008 01:10 PM by Mary PAUL, ABR, CRS, e-PRO, SEARCY, AR RE/MAX (RE/MAX Advantage Realtors)


I usually tell buyers that a builder does not negotiate very much if at all.  We have one builder who prices his houses the same whether he sells it or an agent sells it.  I love his doing that.  But he does not negotiate;  the price is firm.  I wish all of them were that way.

04/04/2008 01:19 PM by Barbara S. Duncan ABR, CRS, GRI, e-PRO Searcy AR (RE/MAX Advantage)


I do agree with you Mary. I hope you might have had some bad experience because of this.

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04/04/2008 02:20 PM by Sasha Miletic - Windsor Real Estate (RE/MAX Preferred Realty Ltd.)


Mary, I always think about days on the market when I list new construction. I try to wait untill I can get a decent picture of the exterior and then I list. I worry that listing to early may make the listing get cold as the realtors show it at first then by the time it's done it's not new anymore and kind of forgotten.

Maybe I should be listing earlier??

04/04/2008 02:24 PM by Jennifer Davis (RE/MAX Advantage)


Jennifer,

The last builder home I sold was barely framed.  I have sold them with just the footings poured.  I think we need to list early, and educate the Realtors!

04/04/2008 02:31 PM by Mary PAUL, ABR, CRS, e-PRO, SEARCY, AR RE/MAX (RE/MAX Advantage Realtors)


Well in that case I better get out there and list Diamond Key!!!

04/04/2008 02:36 PM by Jennifer Davis (RE/MAX Advantage)


So are you coming?

I am happy to annouce CARMLS in Little Rock has scheduled me for 2 full days of training April 14th and 15th at their building on Natural Resources Drive.  If you own a Smartphone or thinking about buying a Smartphone then you want to be there!  We are having 13 hours of training with 9 hours of hands on training, so bring your chargers.  If you have any questions on what will be covered I have a link below on the class schedule.

Smartphone users, feel like your Smartphone is smarter then you?  Do you want to work Smarter not Harder?

If you don't currently own a Smartphone but know you need one, then ATTEND!  Normally 25% of my classes are agents thinking about buying a phone and I am there to help you decide what is best for you and where the best deals are.

Here's a link for more info;

http://www.dickbetts.com/carmls.html

04/06/2008 01:33 PM by Dick Betts (Dick Betts National Speaker)


This is a very valid point. My husband is also a builder and it drives him crazy when people look at the days on market thinking they can make a lower offer. I may just do an informational on this very subject.

04/14/2008 02:47 PM by Katharine Carey, Agent Carey- RealtorĀ® (Sun-Mark Properties)


Katharine,

Thanks for the response.  Your husband is like mine, low offers he does not like. 

04/14/2008 03:29 PM by Mary PAUL, ABR, CRS, e-PRO, SEARCY, AR RE/MAX (RE/MAX Advantage Realtors)


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