REALTORS Sell New Construction Properties Too
Buyer representation should not be overlooked for resale and new construction
Image courtesy of Bill Longshaw at FreeDigitalPhotos.net
Often I will work with customers for a short or long time period primarily on resale listings. Then I'm told that they have turned their attention to new construction and for some reason that equates to I don't need a REALTOR.
This certainly has happened in the past, but lately with more frequency. I firmly believe that the lack of inventory, good inventory, is pushing buyers in that direction. This is understandable. Often, based on requirements, I start by showing new construction property first so the buyer will have that to compare to while shopping resale. I would say that one out of four or five times new construction becomes the choice that the buyer never even considered.
I believe the buyer turning directly to the developer happens because they don't think that a REALTOR can help in the transaction. Nothing can be further from the truth and there are several reasons to engage a REALTOR for buyer representation. When your REALTOR puts in so much time dedicated to you, the buyer, regarding resale (and even new) why would you go it alone when you sign that contract?
- The sales associate in a new construction development represents the seller, the developer, not you the buyer
- The REALTOR represents you
- New construction sales associates recognize that when a buyer is working with a REALTOR, the REALTOR will show the buyer all the competitive new and resale properties for an informed decision. The new construction sales associate will not do that. The new construction sales associate becomes aware that the buyer will be well informed and that there is competition for the buyer's business.
- Buyers often feel uncomfortable negotiating. That's what REALTORS do. We push hard for you, the buyer, for incentives and extras.
- REALTORS are aware of the usual and customary closing cost items and what they should typically cost. WIth new construction the rules often change by the terms of the developer's contract.
- REALTORS are well informed regarding all new construction communities. We are provided information about all new communities well in advance of the initial offering.
- REALTORS are routinely invited to developer REALTOR only marketing events touting their community and product. Why? New development developers rely on REALTORS to bring to them a large percentage of buyers. Often REALTORS are the first contact in the area.
Myth: A better deal without a REALTOR. Refer to number seven above. Developers will not risk one deal with the prospect of losing the respect and support of all REALTORS in the area. There is just too much business to lose.
There are now and soon to be nearly fifty developments where new construction product may be purchased just in the southwest Florida geographic area where I work. Call me.