New construction and teardowns...the most profitable and easiest sales in the business...right?

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Let's be honest, marketing and selling homes in the middle of the market is tough business*. 

Buyers always have a "push-back"; too small, too big, too much work etc. know, it's always something.  Then comes the inspection and now it's time to renegotiate the whole deal all over, fun, fun...

So, IMO, with out a doubt the easiest and most profitable sales are teardowns and the resulting new construction.  Why?  Well, new construction is new.  It is what it is, comes with warranty's, the buyer either likes it or they don't (assuming a "spec")..and the push-back is much more limited than selling a home in need of repairs or renovation...and they all need something.

The other easy and profitable sale...the teardown.  The buyer is buying a survey and the potential for the property, so what's inside doesn't matter.  No open house, no marketing expense...just a survey and a price.

God bless all the brokers and agents that tackle the tough job of selling those homes in the middle...not that there is any wrong with's just harder than selling teardowns and the resulting new construction...but someone has to do it, or do they?

Sound about right?

* This discussion is targeted to those that participate in markets where there is on going redevelopment of older and obsolete housing stock..

Posted by

Brian Hickey, founder, broker,

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