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Anna Horton

Baby Clients: New build vs. Established

By: Anna Horton
Sunday, September 23, 2007 5:18 PM

What to do? What to do? Snagged an adorable young couple, first time homebuyers, they called concerning a listing of mine that may (or may not) be closing next week. Good conversation ensued, sent them info, they called back. A relationship was established. Signed them to a Buyer's Rep this AM.

Problem? Now I'm trying to decide whether to help them buy a pre-owned home, we have plenty of excess inventory. Or.... buy a new build home. We all know that the builders play with funny money but jeeze, there are some astronomical numbers out there. $80 K off list price plus 15 K worth of upgrades and a bonus to boot. These builder offers are coming in by e-mail, dropped off with lunch for the office, by phone, personal visits, they are hungry out there.

What are you doing in this last breath of summer construction?

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Comments

Mipeco Realty, Inc -  Michaela Krestenic, Broker-Owner
Member Since '03

Mipeco Realty, Inc - Michaela Krestenic, Broker-Owner said:

While there's still a lot of new construction in Northern Illinois, where we are, I don't see builders being that "giving". I don't think I've gotten any mail or e-mail from the builders in quite awhile. That said, I've also never sold any new construction ... always pre-owned homes, so I may not be their primary target. The buyers I work with are mainly young rehabers who don't like cookie cutter style subdivisions and the "artificial" look of new developments.

I'd just go with what you know about your clients ... are they handy at all? Do they like newer construction? Or would they prefer an older established community? Plus, what if they need to sell in the near future ... how realistic will be their resale chances in a new subdivision with the builder still there?

September 23, 2007 7:24 PM
Gary Morris
Member Since '07

Gary Morris said:

Michaela hit the nail on the head..."Plus, what if they need to sell in the near future ... how realistic will be their resale chances in a new subdivision with the builder still there?

Most first time buyers and many experienced buyers don't realize that in a typical tract community, the homes value is stagnant or declines for several years until well after the community is finished. I always advise a buyer that if it is new they want, be prepared to stay in the home for quite a while.

I am not seeing the huge discounts here in Indianapolis like you are, but they are advertising some reasonable deals, ie 4.875% fixed 30 year financing.

September 23, 2007 8:45 PM
Michael Klijanowicz
Member Since '07

Michael Klijanowicz said:

Take em to the builder!  It is an easy deal and an easy sale for you!

September 24, 2007 5:48 PM
Shelly  Constantz
Member Since '07

Shelly Constantz said:

Michael, sometimes easy isn't what you want for your buyer.  You have a duty to help give them the information they need to make an informed decision.  When you are growing your practice, you want those folks to come back to you with a saleable property when they are ready to move up or move down or move out...  

Slow down and take the time to inform your clients of the pro's and con's of all the choices, then follow their lead.  That is a smart sale.  Takes a little longer, but well worth it in a the long run.

shelly

September 24, 2007 6:39 PM
Mipeco Realty, Inc -  Michaela Krestenic, Broker-Owner
Member Since '03

Mipeco Realty, Inc - Michaela Krestenic, Broker-Owner said:

Shelly, well said! It's not about that one paycheck ... it's about building future business and sources of referrals.

September 24, 2007 6:44 PM
Cathy  Clark
Member Since '06

Cathy Clark said:

Anna, something else.  Buying a home for the first time is stressful enough.  Building a home is usually a nightmare.  Combining the two?  I'd try to steer them to an existing home that has a good inspection and home warranty.

September 25, 2007 9:04 AM

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Anna Horton
RE/MAX North San Antonio II

Anna Horton
Member Since '07

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