Browsing articles in "David’s Blog"

NAHB: Don’t Let The Numbers Cloud Your Vision

by David Fletcher   //   For Agents & Brokers, For Builders & Developers  //  No Comments

Could it be that the National Association of Home Builders is so busy putting out the spec in the governments eyes that they lost their vision because they have a log in their own?

Every single day they are lobbying at local, state, and the national level on behalf of potential homeowners.

They are totally focused on working to keep mortgage rates down, reducing the amount of down payments required, offsetting new laws that will add expense to implement, and convincing those in power to revise appraisal guidelines to some thing that makes sense. It is an incredible organization with invaluable work to do.

But one has to wonder if during what has to be the most difficult time in years, the NAHB hasn’t lost its vision among the charts, studies, and proposals.

Our country needs to see homes under construction and hear hammers driving nails into rooftops to start to believe that a recovery is underway.  Speeches, talking heads, and even what we read, will not do it.

The NAHB needs a vision, a goal in terms of housing starts.  Regardless of the market, housing needs to be proactively marketed.

How many home starts have they targeted for the next 12 months? Not projected. Targeted.

Lets say, for example, that a state association targets the selling of  20,000 new homes in the next 12 months.

Can this be done? Without a marketing strategy and tactics, the answer would be ‘no’.

But a strategy and production goal would create focus and urgency and help home builders and others think creatively.

Here’s a thought. According to the National Association of Home Builders about 50 percent of those who are buying new homes are first time home buyers (unencumbered renters).

Let’s assume that 500,000 new  homes will be sold in 2011.  According to the National Association of Home Builders about 50% (250,000) homes are purchased by first time home buyers. They also tell us that about 50% of all homes are sold by cobrokers.

Now, lets say that in 2112 the NAHB sets a goal to increase sales to first time home buyers 20% (50,000) and set another goal to increase cobroker sales by 50% (50,000).

Now they have a vision they can share with Washington that makes this understandable and maybe a little emotional, especially when they tie the fact that more than 100 familes get pay checks every time a new home is constructed.

To make this work, it would take a smart marketing campaign and ‘all in’ support from the National Association of Realtors.  Buyers fear what they don’t understand and today they do not know if they can or should buy a new home or a resale for that matter.

Give the country a vision, because it will take a vision as well as hope and knowledge to get the undecides to move from renting to ownership and real estate agents to bring their ready, willing and able prospects to new homes centers.

 

The Most Saleable FSBO In Town Is A New Home

by David Fletcher   //   For Agents & Brokers, For Builders & Developers, Uncategorized  //  No Comments
A new home  is not only the easiest sale, it comes complete with a team of highly trained professionals to help agents close the sale. No contract to write, no appraiser or home inspector to meet, no walk through to coordinate.
This doesn’t mean the real estate agent drops out of sight. Far from it. But it does mean that the agent’s productivity should greatly increase, because the agent has other people performing the administrative tasks that must be completed after the contract becomes effective.
And in today’s market, builders can construct, close, a new home in the same or less time it takes to negotiate and close a short sale.

Needed: New Homes Sales “Best Practice” Guidelines

by David Fletcher   //   For Agents & Brokers, For Builders & Developers, Uncategorized  //  No Comments
There has never been a time in the last 40 years when Realtors and home builders needed each other more than they do today. Realtors need inventory they can sell and close. Home builders need ready, willing, and able buyers.
Home builders are offering higher commissions, special incentives, competitive pricing, yet real estate agents shy away from new construction sales. Why is this?
We can speculate all day and come up with a long list of reasons, and still miss the reason if we don’t admit a couple of things:
1 Builders would rather not pay the sales commission.
2. Real estate agents would rather sell their own listing.
Both positions make economic sense. But this does not change the fact that the buyers are few, the listings can be complicated and we all have reason to believe that we will be here for a while.
The real problem is that if the home is not listed in the MLS system, it does not exist to to the general agent. The other problem is that general agents receive little to no training how to find and qualify new homes buyers.
It seems to me that the communications directors for both the NAR and NAHB could develop a ‘best practices’ guideline within a few hours.
 Would this not be a strong hook to develop a marketing campaign, bringing Realtors and home builders together around a much needed marketing campaign? It would help focus on new homes sales and bring more buyers to real estate agents.
The benefit to both could be huge, because home builders would sell more homes, and real estate agents would sell more new homes and resales, because a signicant percentage of new homes prospects will end up purchasing resales.
It is a farm that has never been plowed by NAR and a team of sales professionals (over 1 million Realtors) who with the proper encouragement and training , would respond.
Your thoughts?

Should Builders Pay More Than Market Rate Commission?

by David Fletcher   //   David's Blog, For Agents & Brokers, For Builders & Developers, For Investors  //  No Comments
Some may disagree, but as new homes broker of record, having represented more than 70 communities, working with Realtors from a variety of offices, I would say “No”. Not at all.
The key is to not pay less than market rate, to be competitive. For example, if the standard fee for selling a resale in your market is x percent, it would not be prudent to offer less than that amount.
But there is no reason to offer more.
Professional agents are looking for long term relationships with their buyers, not a way to use them to make the most money for themselves.
Besides, if your program is too over market, they may think something is wrong, and many times they are right.

Don’t Assume Short Sales Prospects Will Not Purchase A New Home

by David Fletcher   //   David's Blog, For Agents & Brokers, For Builders & Developers  //  No Comments
Our blog is constantly encouraging general agents to add “new construction” to their inventory offerings, even though the new home may be a for sale by owner. The reason we do this is because there is a huge opportunity for general agents to add to their revenue stream if they do.
All short sale buyers are not buying short sales. There is a significant number of short sales prospects that are turning to new homes due to the frustration and stress embedded in the short sale purchase process. Many of you reading this know what I mean.
To prove my point,  read this column, about a short sale buyer who shopped with a Realtor for almost six months, purchased a short sale that cancelled without notice. The buyer purchased a new homes for $2 a square foot less than the sale would have cost her.
She purchased a Centex home near Tampa, Fl from a for cash and closed in seven days. I had the priviledge to interview her and her Century 21 Realtor.

About David’s Blog

by David Fletcher   //   David's Blog, For Agents & Brokers, For Builders & Developers, For Investors  //  No Comments

We base it on our more than 30 years as a new homes broker of record for more than 70 communities and $3 billion in sales. Before this year is out, we will be announcing a blockbuster program for home builders and real estate agents that will solve sales problems for both.

Production builder cobroker sales are sixty percent or higher, much higher. This tells us one thing: Cobroker sales are the dominant resource of new homes sales today. We know from being one, however, that the real estate industry has a long way to go to really understand how to train general agents to sell new homes.

That’s the need we fill. 

Now, what about the blog?

We write about new homes sales tips, issues, opportunities, reminders, etc. You will see guest blogs at times. We will mention names when we blog about something innovative. without charging or asking the vendor or builder to pay us. We want to help as many as we can as often as we can for as little expense as we can.

From time to time you will find one of 50 mp3′s files on our blog, and announcements about out webinars geared to general agents and onsite agents. Or you may see an old idea that worked ‘back then’ and will work today that you overlooked.  You will also read about new ways of doing things, some proven, some being tested, but always out there for ‘somebody.’

Thank you for your time and interest.

 

David

 

 

 

 

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