If you have buyers who want new construction, heed Barbara Todaro's advice.
First, educate yourself about the extras contractors are apt to offer. Learn which are smart and which are not. Learn what are reasonable prices for those extras.
Then educate your buyers.
If you're a buyer's agent, it IS your duty to protect them and be sure they have the facts, just as it's the builder's agent's duty to try to sell the extras.
The listing agent of new homes in subdivisions have many hats to wear, when representing a builder. The focus must always be directed in favor of the builder.
One of the main tasks is to sell extras. There must be a list of “Frequently Requested Extras” with their respective prices for the listing agent to present and promote at the right time. The emphasis is “at the right time.”
The right time is “after the purchase and sales has been fully executed.” Get those spending juices flowing, and remember, “the eye buys.” Be prepared “to show” the finished extra projects and/or items.
This task cannot always be a successful one, and that’s dependent on the sophistication of the buyer. If the buyer has the common sense and is educated enough to secure the guidance of a well-versed buyer’s agent, the extras will be slim to none! Emphasis here is on “well-versed.”
Fortunately for the builder, most buyers searching for a new home do not hire a buyer’s agent. One of the positive results for the builder is the profit margin on those homes compared to those where a buyer’s agent was on the scene and accompanied the buyer through the entire journey!!
The listing agent’s job, regardless of the presence of a buyer’s agent, is to sell extras. There is a great profit to be made by many of the popular items and/or amenities to be added. The prices are usually based on what the market will bear. Those numbers may come from an agent who has experience with other builders and their success with selling the extra.
Beware, buyer agents!! Not all extras will hold that value in the future. There may be a total loss of value with the addition of particular extras. Those are the money makers for each builder. I’ve seen 150% or more profit margin on many items.
Just another thought for the moment……
Barbara Todaro, sales manager of RE/MAX Executive Realty
Marketing Agent for The Todaro Team
308 W. Central St...suite E
Franklin, MA 02038
Exclusive Marketing Agent for The Todaro Team
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