As a Texas Realtor, and especially as a North Texas Region Realtor, I am constantly working to sell both resale homes, builder spec homes, and new construction build jobs in our community. New and resale have co-existed in our area since around the 1870's. And, our suburban sprawl continues.
A big mistake that people make is differentiating between new and resale. It isn't just the buying public that does this. Realtors do it. Homeowners do it. And, local builder representatives do it. Some of the people with the most opportunity to sell more homes are those local builder reps. They sit in a model home all day, and they take down information on prospective buyers. Then, they file it away. Maybe, they call on those folks from time to time to see where they stand with their possible move to our community. And, then they file them way again for another 2-4 weeks until another update is due.
Just yesterday, I spoke to two builder representatives. I'm not going to name them, because their critical error is one that I see reps make over and over again, until they leave the industry frustrated that they could not sell more homes. They both made the same error: The representatives mentioned that they keep a file of people who want to come out and build a home with them, but that they have a home to sell first. They make a file folder with their name on it and puts it in the desk for future follow-up. When I asked who they share that information with, the responses were also the same - nobody but the sales manager. No real estate agents? No. Why do that? Here's why:
1. The real estate agent has a network of other agents. Even if the prospective buyers don't currently live in the local community, the agent can refer someone to help them sell their home. The Realtor can find just the right agent to list the house. Timing the transactions saves money. If the prospective buyers DO live in the local community, partnering with a local Realtor to coordinate a home sale with a home purchase can be of critical concern to the client. A coordinated home sale/home purchase saves the client the inconvenience and expense of multiple moves.
2. The client may want to build a home, but fear of the unknown can keep them from buying new or building a home, so they revert back to another resale home that is 'close enough' to what they want. The client may need to sell their current home, then go into a residential lease for 6-12 months in order to build the home of their dreams. A local Realtor can make that happen. Just this week, I put a residential lease together that is a 12-month lease, but it's an 8-month term followed by 4 months at month-to-month. The client now has the flexibility to search for the land, purchase the land, start the build job, and get through the completion without going into an apartment or putting their possessions in storage. Some other agent actually sold their house in Frisco, but that agent didn't do rentals or new construction, so they filed away this client as soon as they took a contract on their house and wished them luck. Wow! How short-sighted. I picked them up, found the rental, negotiated that deal, and am now helping them locate the land on which they'll build a home. I'll stay with them through the construction process - attending their framing/electrical walk-through, suggesting amenities that hold strong resale value, and supervising the loan processing and title work to make sure the purchase goes as smooth as silk. And, I've done this over and over again when people desire the time and flexibility to build. A Realtor removes the fear of a build job. We know the red flags, trouble signs, and obstacles that can come up, and we can overcome them.
3. The builder may need someone to tour the client around to other available homes, and educate them on the real value of their spec home or build job. People are visual. But, when you take them out to an empty lot and describe the home, many of them just cannot see the picture clearly. Touring resale, finished spec homes, and home sites in various stages of construction can build the image for the client, and make them more comfortable with the idea of building a home. Sometimes, the builder will lose the client to a resale home or a finished spec. Not everybody can warm up to the idea of waiting 5-8 months for a home to be completed. But, many of those buyers will absorb that education and determine that they do have the fortitude and desire to build a home from the ground up.
When Prosper Realtors and Prosper new home reps work together, the present and future residents of Prosper all benefit. Don't just file away that folder. Talk about them. Blog about them. Tweet about them. Call each other and talk about who you have coming up in the next 3-6 months. Each of you has a stream of business, and the more you share, the more likely that you will both meet your goals this year.
Have a blessed day!
Ronda
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