In today’s Q & A section of ActiveRain, there was a question by Spencer Coleman that asked “What is your favorite type of real estate? Why?” The answers varied, but there were a few agents who have the same mindset as I. My favorite niche is new construction.
There were many reasons for my selecting that niche, and they all result in multiple avenues that lead to multiple commissions. Open house events being offered every weekend provides “the rotary in the road” that will branch off in many different directions. New construction demands open house events to occur every weekend, and that equates to another piece of business every weekend.
The traffic that flows through every open house event is diverse. It ranges from first time home buyers who do not qualify, but they want to satisfy their curiosity. They want to set the bar for distant future, but they know it will not be their first home. The person who hosts the open house has the first exposure to that first time home buyer. It’s another piece of business.
Another type of buyer may be a very well qualified buyer, and they reserve a lot. That buyer always has an existing home to sell before closing on their next one, and the hosting agent would offer a market analysis. That’s a resale listing, and it’s another piece of business.
Another visitor to new construction sites are other builders. They are always up to date with what the competition might be building, and what other builders are offering for amenities in their new homes. A well-versed new construction listing agent is the ideal agent to give guidance to another builder and, in turn, offer to give a marketing presentation. Who would be better to market another subdivision than an agent who is presently marketing one!! People buy on comparison, and the best way to create activity at your listings is to have all of the listings in the marketplace. I can attest to this from experience!!! That’s another subdivision, and it’s another piece of business.
There is residual business to close when new construction is the nucleus of your business. New construction is the perfect environment for training newly licensed agents. New construction sets the bar in the marketplace. No one pays more for a resale home than they do for the same home newly built. Everyone loves to secure, design, decorate and live in a new home, and my team members are always hungry for another subdivision with all of the business that will follow.
New construction has always been “the path of least resistance” for me. It’s a niche that results in commissions that come from many different avenues, and the road never ends, until the subdivision is sold out. The game plan is to have new communities timed properly so there are always subdivisions to market.
Yes, my favorite type of real estate is New Construction. There’s always another piece of business.
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