Most real estate agents start to sell existing properties. In September 2019, 701,000 new homes sold in the U.S. If not, consider adding a new skill set to your portfolio. Selling new construction projects for construction companies or any businessman isn’t always about money. But gaining new knowledge in a specialized area of the real estate market. 

In this article, we’ll discuss “Things Real Estate Agents Should Know About New Construction Projects” 

Buyer Need’s You


Buying a new construction home isn’t a straightforward thing as you would think. There are a lot of hidden risks involved. New construction or homes comes with a unique set of potential pitfalls. 


Your buyer needs an agent who can look out for his/her intertwined interests. They would think that the builder’s agent as their agent. The builder’s agent is only the agent of the building and his main goal is to make sure that the builder makes a profit from the sale. 


It’s nothing against the buyer its just business 


You step in as your buyer’s agent so they can take a step back the filter to all that noise associated with buying a new home. All that marketing, paperwork, and those potential delays. Your buyer needs you so that they can make the best decision with a clear head. 

 

Pre-Selection Is Important


You just don’t go showing off homes before pre-selecting them. Pre-selecting a home is very important to show a potential buyer. You’ll see that most buyers won’t walk through an existing home without an agent unless they dropped by for an open house. You’re the filter for your buyer and if they talked with the sales representative chances are they are gonna buy it.


Before you and your buyer go rushing into the market for new construction. Get all the construction pre-selected with a lender. Gather all the necessary details so you won’t have to waste time on a home that you can’t afford or don’t want. 


Pre-selecting does include the buyer’s needs and his/her interest, what they are looking for in a house or a building. Pre-selecting makes a lot of things easy and helps you target certain buildings and homes that the buyer wants. 

Get To Know The Neighborhood


Not all communities were built equal, and don’t fit all the buyer’s needs. Most buyers tend to make their own neighborhood plan together. A buyer can’t simply know by viewing a marketing plan. You on the other hand have the knowledge and ask to see the planned site. 


Site Planes provides information about the place’s topography. Things like a drainage ditch nearby, or a utility box for the neighborhood in your buyer’s front yard, or something else. New buyers who never bought newly build homes don’t think about these things. They pick a lot, sign the contract, and later realize they’ve bought a lot with a steep slope or a pond near the backyard or something else. 


With a real estate agent who has knowledge of newly build houses or building your buyer can choose the best lots according to their needs. 

 

Bricks and Stones

Build Up Your Negotiation Skills


Most buyers and real estate agents will come to the home buying process to get a better price. Buyers think by getting you out of the way they will get a better deal on a new construction home. 


But builders rarely negotiate with the price unless they have a high inventory of unsold houses and buildings.


This is where your negotiation skills will work. You already have the knowledge about negotiating offers on existing homes. Negotiating a newly build house or building takes a different approach 


The reason builders aren’t worried to drop prices is because they’re about maintaining the value of the neighborhood. If they reduce the sale price for your buyer, it means future buyers will expect the same. 


Rather than negotiating price negotiate upgrades. 

Know About The Latest Upgrade 

Since you’ll spend more of your energy negotiating upgrades rather than price. You have to know how to guide your buyer towards better upgrades. 

Make a list of what draws a buyer to a new construction project in the first place. That said not every upgrades are fulfilling to the buyers needs. Sometime the buyer will spend money on those upgrades that wont make a difference when they go to re-sell the house. 

You can impress and save the day by telling what upgrades are perferable and profitable in the future. Your advice may help the buyer in the future. 

Become An Expert In Paper Work 

Real estate transactions include a lot of paperwork but if you're selling a newly constructed home or building it requires a lot of documents. You're a link between your buyer, the builder, and a huge stack of confusing documents. 

A part of your job is that your buyer understands everything about the contract he/she is going to sign. You’ll have an eye for any issues found in contracts so that you can discuss them with the builder. 

Most contracts are written in a way to favor the builder. Understanding contracts means you'll know if your buyer need’s a real estate attorney who can add addenda to a contract. An addendum protects a buyer if something goes wrong during the transaction.

For agents who want to manage new construction projects you can visit Bricks and Stones