Helping Buyers Navigate New Construction

 With Monica Neubauer 

Monica Neubauer addresses camera directly: With new development booming, your buyers are bound to want to view new construction. But it’s up to you to let them know just how much you can help them through the process.

I’m Monica Neubauer, a real estate speaker and Realtor with Benchmark Realty LLC in Franklin, Tennessee. Let’s take five minutes to talk about what you can do to provide more value to your buyers who are looking at new construction homes.

You know that it happens. You work with a buyer as a buyer’s agent, show them existing homes and next thing you know they’ve signed a contract for a new construction home—one you never showed them. Then, you’re scrambling to work with the builder to get your commission. Which may or may not happen. That’s why it’s so important to discuss the process of model home showings when you discuss showing resale homes. Then, if the buyer is interested at all, include a few in your initial showings.

When showing new homes, be sure to register the buyer with the builder’s agent at the model home. That’s your best way to get paid. And when agents don’t participate in the process, they don’t get paid. Plus, consider it a team effort between you, the onsite agent, the contractor and the buyer. You’re all in this together for a great experience for the buyer. It works best this way.

You should also understand the process. How long does it take to build? At what point will the opportunity for changes be over? Your knowledge of the process is value you can offer the buyer. As a real estate professional, you can help them avoid mistakes on lot location and floor plans. Ask good questions about the lot and what will be built around it and how the water going to be draining on that lot? Look at the plat for the neighborhood. The buyer’s agent can and should look ahead to see what’s going to be there; not just what’s there now. 

The floor plan also matters. Based on current market data and your experiences with buyers, what are the popular floor plans in resale homes? And How does that apply to a new home? Does this house have what your buyers need?  It can be easy to want a new house when seeing the model, but is it really what they need?  It can be easy to want a new house when seeing a shiny model.  But is it really what they need? Offering advice on these items can set the buyer up for success later down the road and that leads to referral business for you.

When I’m helping a buyer with a new home, I explain that, while I’m not a design specialist, I can provide input on upgrades that will help resale value. It’s the onsite agent’s job to up sell the buyers on fancy upgrades—and some of them are worth it. You can be, as the agent, the balancing perspective and use your skills to help them choose wise upgrades such as marble countertops vs. granite, or how important it is to pick the upgraded kitchen cabinets and skip the crown molding if budget is a concern. 

You should also be visiting the property regularly to avoid potential issues. For example, as the build progresses, checking the electrical prior to the drywall install is vital. You can help the buyer be aware of potential issues like lights in the wrong places or places where an outlet would be useful.  And agents and buyers should do a pre-drywall inspection. They can hire an inspector for that if they desire. 

Before doing a final walkthrough, it is helpful to send the buyer a proactive email explaining all that will happen in the next two weeks concerning inspections and walk throughs. Give them a list of items to check as they go through the home. I encourage them to consider having an inspector come before the first walkthrough. It is good to have another set of eyes look at the details. And then, at the final walkthrough, the buyer will bring the report with them and go over it with the builder’s representative to ensure every item is completed. Agents should always attend walkthroughs to be another person viewing the house and to be the buyer’s advocate should there be something wrong or something confusing. Sometimes the agents have to step in to do the hard stuff, that’s what we do.

As a general education plan, I would encourage you agents to go visit model homes and get to know the communities in your area. Meet the onsite agents, get to know them, and always be learning and listening. Onsite agents can teach you a lot about the community and the building process.

As a real estate professional, you can offer value to buyers looking at new construction far beyond the initial lot selection. And doing so is your first step toward adding that community to your farm once the homes are ready for resale.  Think now and future business.