New Construction As A Listing Tool For Resale Listings

Builders in my area usually follow the "agent must accompany buyer on first visit" practice.  Even if the buyer inquires by e-mail over the Internet, unless the first contact comes with the agent, many builders will not pay an agent, not matter how long the agent and buyer have been working together. 

Which is why, in my area, I make sure that the builders know me and know that XXXX is working with me as their agent.  It permits me to register a buyer before I can get the buyer out on a tour or risk the buyer going in without me on the spur of the moment. 

Barbara:

A thorough knowledge in new construction sales is great background to have. And, often buyers who were considering a brand new home will switch to a resale if they find the right property. Some people are too intimidated with the process of new construction and will be more than happy if the right resale comes along to fill the need.

You make a great point here! Further, an agent who simply turns over a client to the on site agent in a new home community is losing a very valuable opportunity to educate themselves about new construction and homes in general. In my 30 years of practice I have taken evey opportunity afforded me to enhance my knowledge about home construction and it serves me (and of course my clients) well! I find the builders in my community always willing to teach and share their knowledge. The rare builder who treats an agent as an interloper when they wish to fully participate in a transaction rarely succeeds in the long term!

New construction also can help set pricing on existing homes. When a spec home is selling at $93SF, anbd someone wants their 15 year old home to sell at $115 and it is nearby, it can also help you set a reasonable price. 

Had a 737 pilot that we sold a lake lot to who wanted our help to "assemble" the team to build from statch. He loved the process, said he made good friends and learned a lot.  Many times cheaper to build something in the long run because you don't under do, re do, make do with anything. Get what you want and all energy efficient, But unlike the old Victorians, the original charm can be missing no matter how nice. Depends what look you are after.

I feel sorry for the buyers who decide to go it alone - buying a new home without an agent.  An agent can offer perspective on all phases of the market.  Buyers might have the illusion that they are saving some money because they think the builder will make them a better deal if they are not using an agent.  (Usually not true.)

But they are losing the perspective on the product offerings of other builders.  They lose the perspective on historical data about prices in the area.  They lose the ability to make a good comparison with re-sale market alternatives.

There are many agents who work new contruction or re-sale but not both.  If a buyer uses an agent who is familiar with both markets, they have a better opportunity to get the best match.

Barbara, great post. We deal in both but I have seen agents that tend to only push one or the other.

Totally crazy.

Around here it can get sticky.  But as a general rule, builders will honor a buyer's brokerage agreement.  There are exceptions though....

Barbara, great post.  I sell both real estate (land and resale) plus new home construction.   I find I have a great edge with the construction background when assisting people with land purchases, as well as with resale.  Customers like working with me because it helps them evaluate throughout the process which is their best option - resale or new home construction.  In this manner, once they have made a decision, they can feel confidant it is the right decision for their needs because they have explored all the options.  I don't see that one conflicts with the other and, in fact, for me knowledge of both enhances the buying experience.

But I have to work very hard to keep up with the knowledge - it is challenging, and I love every minute of it.