7 Reasons New Homes are Right for Realtors

Couple with a Realtor walking in front of model home.
Looking for a good reason you should focus on selling new homes? We have seven.

Somehow you wound up reading this article, so that means you’re at least a little bit interested in new homes. And for that, we commend you.

Here at New Home Source Professional, we believe new homes offer unbeatable benefits to not just the home shoppers, but to our tried and trusted real estate agents and Realtors as well.

So whether you’re a diehard supporter of used or a veteran spokesman for new, take a moment to skim over our top seven reasons why an agent should focus on new home sales. They might actually make you think twice the next time a client asks you to find them the “perfect” fixer upper.

1. Home shoppers love new homes.

They might not know it yet, but just about every home shopper loves a new home. From that crisp and clean feeling to all the energy-efficiency benefits they provide, there’s a lot to love about new homes.

Sarah Renwick, a Realtor with CityLife Realty Group in the Dallas area, is proud to show new homes for the following reasons:

  • Everything is new and they don’t require renovations or immediate maintenance. Homeowners can move into a new home without worrying about fixing anything or making repairs shortly down the line. 
  • New homes come with extensive warranties. So in the rare occasion that something does require fixing shortly down the line, those repairs are usually fully covered.
  • New homes incorporate the latest home design trends. Builders are listening to home shoppers and including popular trends in new builds like outdoor living and kitchen areas, a laundry room attached to the master closet or mudrooms in colder climates.
  • New homes use the latest energy-efficiency standards. Many builders strive to build homes that yield high ratings in energy efficiency and eco-friendliness. This is where things like the HERS score or Energy Star ratings come into play. In addition, some builders may even use smart technology to help monitor energy usage — or just to make home automation easy and fun.
  • New-home communities offer great amenities. Many master-planned communities feature amenities like club houses, pool areas, sports courts, parks, walking trails, neighborhood events, schools, shopping centers and more. 

So what does this mean for you? When a homebuyer falls in love with a new home and community they found through their agent, they tell their friends. A happy client, a happy agent.

2. Builder sales professionals make it easy.

With used homes, you generally have to explain everything about the property to the client yourself. New home builders usually have a handful of sales professionals on site to do that job for you.

“Our new-home consultants accompany the buyer-agent and the client at each showing,” says Ron Austin, a marketing manager with Michigan-based Sable Homes. “It’s like buying a new car: If there wasn’t a salesperson, you couldn’t take a test drive or know what options were available.”

The stress of remembering every feature of every home in your inventory falls off your shoulders.

3. New-home communities save you time running around town.

In any given market, there will be used homes for sale far and wide. That means you’ll have to travel far and wide to show them to your clients.

With new homes, most builders stick to specific and centralized communities, or even master-planned communities. This means you’ll only have to travel to a few neighborhoods to find all the new homes in your inventory.

“We can narrow the search down quickly by learning why the buyer is moving and what they are moving away from,” says Austin. “We try to find out their pain from the previous home or situation — it doesn’t make sense to anyone to move them into another painful situation.”

4. Chances are slim that a deal could fall apart.

Showing homes is a lot like dating. You’re the matchmaker setting up your client — who is very picky — on a date. Which home is your client likely to call back for that second date?

A used home might sound great on paper, but there’s always the chance that something could go wrong after an inspection, causing your client to give up on the deal — much like they would give up on a date when they find out they still live in their mother’s basement. New homes are less likely to have things that need to be repaired — and if there is something that needs fixing, the builder or a warranty should take care of it pre-move-in.

In the game of buying homes — or love — we all know how frustrating it can be to feel like you’re closing in on the deal only to have them run away from the contract — or altar — at the last minute.

5. There is less competition in new-home sales.

“As an agent, it’s nice to work with the builder’s team and not have to worry about competing agents’ offers,” says Renwick.

This can be especially tough in a seller’s market like Dallas, where bidding wars have become the norm.

“I have had clients that specifically decided to buy a new build and rent for six months for its completion because they couldn’t compete,” she says. “This option is great for agents and their clients as it prevents undue stress that comes with bidding wars. The builder simply accepts the offer, the details are negotiated and the sale moves forward.”

6. Builders may offer cash bonuses.

While a 3-percent commission for agents may be common across the nation, there are many builders who offer bonuses for great Realtors.

“Sometimes they will offer a cash bonus for the full 6 percent,” notes Renwick.

For more information on commissions when selling new homes, check out our article, New Homes Create Four Commission Opportunities.

7. The builder handles the contract.

When it comes down to the closing steps, the builder generally has this covered. They will have their own contract and sales agreement written out for the home shopper to sign on their own.

“I have never come across a builder that used the standard Texas Real Estate Commission forms,” adds Renwick. “They have their own. This saves me, as the buyer’s agent, a lot of time.”

Though, she says the shopper should never sign on their own and advises agents to review the agreement and negotiate with the builder when applicable.

In addition, many builders will have move-in ready homes that allow for quick closing like that of a pre-owned home. Yet unlike a pre-owned home, the price of the home isn’t as negotiable, so as long as all plans are made upfront, there are typically no cost surprises.

To close, Jason Mitchell, a top agent in the Scottsdale, Ariz.-market and president and founder of The Jason Mitchell Group, offers this parting tip: “Shop your competition and know what (distinguishes) your builders.”

About the author 

Drew Knight

Drew Knight is a freelance writer for Builders Digital Experience (BDX). He graduated from Texas A&M University in December 2014 with a degree in agricultural communications and journalism.

He previously edited and designed pages for the Bryan-College Station (Texas) city paper The Eagle, wrote for the Brazos Valley’s premier arts and entertainment publication Maroon Weekly and worked in publicity at Warner Bros. Records in New York City.

Related Articles