The residential real estate industry has seen exponential growth in the past few years as more people are investing in buying their own homes instead of renting. According to the latest statistics, over 1.4 million residential building permits have been issued this year as of August 2020. This means there are plenty of opportunities for builders to develop new projects and for real estate agents to offer better options to home buyers.

 

However, selling a new construction home is quite different from selling an existing property, as any experienced real estate agent will confirm. While selling a new home can be exciting for both real estate agents and homebuyers, it also requires patience and persistence from the agent.

Here are some key aspects of selling new construction projects that real estate agents should know:

The Sale Process Requires Unique Steps

The main difference between selling an existing property and new construction home is the sales process. The transaction requires some additional steps that are exclusive to the sale of a new construction home.

An essential step is for the real estate agents to take note of the conditions stipulated in the buyer’s contract, such as deadlines for payment and return of the deposit money. Real estate agents are also required to inquire about any incentives, inclusions, and financing options that the builder is willing to offer the buyers.

A Bigger Role to Play

A real estate agent has a bigger role to play when selling a new construction home instead of just facilitating the deal between the buyer and seller. Agents must analyze the information offered in various blueprints, soil surveys, and floor plans to help the buyers make an informed decision regarding their investment.

Buying a new construction home can be an intimidating process for the buyer to deal directly with the builder. The agent can help them secure the deal and look out for their best interest by providing them vital details that are often overlooked by home buyers.

The real estate agent is also responsible for ensuring all the custom upgrades and features are installed in the property as agreed upon in the contract.

 

builder's contract

A Closer Analysis of Builder’s Contract

Builder’s contracts are usually created with conditions and verbiage that favor the builder rather than the buyer. It’s the agent’s responsibility to analyze the builder’s contract closely and inform the buyers.

Buying a new construction home does not involve a lot of negotiating over deadlines, money, and possible repairs, which makes the process simpler, easier, and quicker.

However, it’s important for the agent to help the buyer to understand the terms of the contract and agree to them to avoid any issues in the future.

 

As the nation’s leading new home inventory listings platform with unique real estate tools, Builders Update provides valuable construction data solutions to local builders and help them connect with local agents for mutually beneficial business partnerships.