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October 31, 2014

Use New Homes to Help Clients Set Price Benchmarks

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Use New Homes to Help Clients Set Price Benchmarks

By showing your buyers new houses, you may help them get a better understanding of the price of homes, writes Florida real estate broker David Fletcher for Realty Times.

Fifty four percent of the buying market will look at new houses, according to a study from Builders Homesite Inc., a consortium of the largest home builders in the U.S. 

Even if your buyers aren’t interested in purchasing a new home, showing them one on their househunt could be a way to help them better evaluate prices, says Fletcher, author of “Condomium Sales and Listings.”

He recommends taking buyers to new-home business centers to see what they can get at a fixed price in their range, then comparing that knowledge to the resale homes they see. “The fixed price becomes a benchmark to help determine your resale offer,” he notes. 

“The overwhelming reason home shoppers should visit a new-homes center is not because they might buy one, although they might,” Fletcher writes. “The real reason to visit the sales center and tour a model is to establish a price benchmark by which to better evaluate the price and value of the resales prospects will see.” 

Source: “Leverage New Homes Showings to Sell More Resales - And New Homes,” Realty Times (April 19, 2013)

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