Do you THINK in the present or in the future? That’s a simple enough question. When you think about it, the answer could be terrifying for a real estate agent who is self-supporting or whose family is relying on that income to complement another.
We work in a people business, and it’s always a pleasant thought to help others. However, let’s be totally frank. We’re in this for the money not for the warm and fuzzy feeling when we see a client smile. Unless we think about the future at all times, we may have many months with income voids.
Marketing is what makes the phone ring. Marketing our inventory; marketing us; marketing the real estate office where our license hangs; and marketing our marketplace. Some topics work better than others depending on where you live.
When I was actively working, I was always thankful to have new construction as my niche. It worked well for me, and it’s now working well for the team and individual agent for whom I market. They are well versed in closing builder/developers, and that was greatly do to my mentoring. They fly on their own now!!
My job is to market for land for their future business of new home communities. They keep their builder/developers fed. One subdivision will result in a consistent flow of income. The statement that usually responds to any question asked about listing new homes is the “lack of land.” There IS land somewhere within your area. It may not be the town you live in, but it could be a surrounding town. That’s why we have vehicles.
When our instincts relay a future change in the market, the thought of having new home inventory is a relief. Builders MUST move the product. Banks DO NOT want to fill their asset management department with more inventory. The prices adjust with new homes to reflect the current market. Builders purchase with a built in factor that provides a buffer when, and if, the market adjusts.
New builders who do not buy land properly will learn quickly, and the big builders will take over those communities. Most banks will negotiate deals and finance the project to keep it off their failed list of properties. New construction makes life in the real estate business more stable for listing agents.
When an agent has listings, the phone will always ring, with the proper marketing. When an agent has a new community, business appears in many forms including a variety of buyers, resale listings and other builders who have stagnant new communities.
The agents who have new home communities for a niche are too focused on business to realize the negatives of the current market. All thoughts are for the future and what the next game plan will be to create more business. Everyone loves a new home, and it is well worth the effort to become more educated on the new home phase of the business.
Just another thought for the moment….
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