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ShareThe majority of real estate agents start out facilitating sales of existing homes, and stick to doing just that throughout out the entirety of their careers. Yes, there aren’t many real estate agents who dip their toes in the new home construction market.
However, did you know that more than 701,000 new homes were sold in the United States in September, 2019? So, if you’re a real estate agent who’s been skeptical about delving into the new homes market, think again.
Dealing in new construction homes not only provides you with an additional, potentially-lucrative income stream, but also provides you the opportunity to gain knowledge in a specialized area of the real estate market. So, why not you?
However, before a real estate agent starts working with new construction homes, here are a couple of things they should know.
New Home Buyers Need Real Estate Agents
Purchasing a new construction or to-be-built home isn’t as trouble-free and straightforward as most buyers imagine. With any real estate purchase, there are hidden risks and pitfalls, and new construction homes come with their own unique set of potential complications.
Buyers need a professional who’s well-verse with these potential complications to look out for their interests. Now, many new home buyers think that the builder’s agent is doing this job. However, the builder’s agent is looking out for the builder’s interests, and not the buyer’s.
Prequalification Is Vital
Real estate agents who deal in existing homes know about the importance of prequalifying buyers before showing them homes. Well, prequalification is just as critical when dealing with new constructions homes.
Typically, buyers can’t inspect an existing home without an agent unless it’s an open house. However, new construction, on the other hand, is like one big open house. Remember, you serve as your client’s filter. If they’ve already seen a model home and spoken to the builder’s sales rep, it’s likely they’ve fallen for a home.
So, before you and your client get in too deep, make sure they’re prequalified with a lender. This will provide you with an accurate idea of their price range, and will prevent you from wasting time on unaffordable homes.
An extremely useful new homes search tool, Builders Update helps agents connect with home builders and form mutually-beneficial business partnerships. Sign up with them today and increase your bottom line.
