Advice from Certified CRS Instructor Mike Selvaggio, CRS
By Mike Selvaggio, CRS
Mike Selvaggio
After thousands of new home sales and managing many new-home accounts in Delaware, Pennsylvania and Maryland, I understand the personalities, needs and opportunities associated with new construction sales. And I can sincerely say it is a tremendous way to generate income. Here are five reasons you should consider turning your attention toward the new-home builders and developers in your area.
1. An influx of buyers (you don’t need to prospect)
The good news is there may be a stream of buyers who arrive at your model home. The bad news is there may be a stream of buyers who arrive at your model home—at the same time.
You may not have the luxury of spending all the time you need with every buyer, so it is important to learn “knock out” questions to identify the tire kickers. One great script for this is to say, “Folks, as you can see, we are very busy today and I want to make sure I meet everyone’s needs. So, who is here to buy a house today?”
As the salesperson, you do not need to generate the leads, since that is generally the builder’s responsibility. Your real job is to get the deposit, and that is where you earn the big bucks.
2. Easy seller leads
Sure, you get paid for selling the houses on a new-home site, but that is only the beginning. Sooner than you might think, these buyers may be moving again, so stay in touch with these contacts.
Additionally, a large percentage of new-home buyers, especially in a move-up community, need to sell their existing house. The nice thing is that they are usually motivated to sell and will most likely price their current house that way.
3. Posted hours
When is your quitting time? Bet you don’t know. Well, a new home site has hours, so sometimes you are open and sometimes you are closed. It’s a nice change of pace from the all-day hours of most residential real estate.
4. One seller, many listings
Usually, if you have 10 listings, you interact with 10 sellers; not in new construction. Although the builder may be demanding at times, remember he or she is the only seller you have to deal with. That person can represent hundreds of current and potential sales. Exceeding expectations is the rule: Over-serve your client.
5. Own properties yourself
Think about the benefits of owning one or more properties and the security it can bring. As a builder representative, you might even experience the opportunity to buy one of the builder’s products, and possibly at a preferred price. No matter what the price, you know where the market is heading.
For a deeper dive on new construction, including how to collaborate with builders and developers, find land and broker the deal, research and plan the product, market and show the homes at varying stages of completion, and farm the community to capture resale opportunities, check out the new CRS course, Turning New Homes Into Ongoing Revenue.
