RISMedia's Real Estate Magazine

MAR 2018

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/944619

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Page 22 of 118

18 March 2018 RISMedia's REAL ESTATE {REBAC Report} Residential agents, largely preoccu- pied with helping buyers and sellers of existing homes, often overlook new construction. But it doesn't have to be that way. In fact, as a bro- ker interested in helping your agents find every potential angle for gaining more business, new homes belong on your radar. Intentionally Ignored? Before encouraging your agents to get involved, it's helpful to acknowl- edge what might be holding them back. New homes are avoided for a variety of reasons, one being lack of information. Often, these properties don't appear in the MLS, so finding them requires additional research such as driving around, monitoring local ads, and searching builders' websites or property portals. Your agents may also feel like they don't know enough about new- home transactions, and that getting involved requires a steep learning curve. On top of that, it's difficult to feel confident and persuasive in tell- ing buyers they will add value to a new-home purchase if this is an area where agents are lacking knowledge or experience. Maybe your agents' biggest con- cern is that they will be cut out of the transaction. As a rule, reputable builders don't try to trick agents out of earned commissions; however, your agents should always take steps to prevent such disagreements. This includes learning how to effectively use a buyer representation agree- ment (a core topic that's central to the ABR® designation coursework) and officially registering buyers with the builder's representative. On the Flip Side New homes also offer several advan- tages. Since builders typically pro- vide warranties on the structure and appliances, agents are less exposed to liabilities from undisclosed condi- tions. Additionally, a builder's errors and omissions insurance will cover major structural and site defects, further minimizing an agent's liability exposure. It's also fun. After all, it's prob- ably safe to assume that most agents would rather help buyers make smart decisions on appliance upgrades and new flooring finishes than to negotiate over roof repairs or septic system upgrades. Steps to Take When consulting with buyers, encour- age your agents to be proactive and ask about new homes. By initiating the discussion, they will accomplish two important goals: 1) demonstrate their interest in considering all op- tions that might satisfy their clients' needs; and 2) introduce their role in a new-home purchase (and help ensure they remain included in any transaction). Regularly checking out new-home construction in your market, meeting with sales representatives and un- derstanding builders' preferences in working with real estate agents are additional helpful steps. Gaining Confidence If your agents want to expand their skillset—and their income poten- tial—to include new-home sales, the easiest way to gain this knowledge is via REBAC's New-Home Construction and Buyer Representation course. This recently updated one-day course counts toward earning the ABR® designation and is an excel- lent complement to the ABR® desig- nation coursework. Visit REBAC.net for additional details. RE Marc D. Gould is senior vice president, Member Development, for NAR and executive director of the Real Estate Buyer's Agent Council (REBAC). A wholly-owned subsidiary of NAR, REBAC is the world's largest association of real estate profession- als focusing specifically on representing the real es- tate buyer. With more than 30,000 active members, REBAC awards the Accredited Buyer's Representative (ABR®) designation to REALTORS® who have completed the designation requirements. To learn more, visit REBAC.net. Are New Homes Included in Your Spring Growth Forecast? by Marc D. Gould T he busy spring selling season is right around the corner. It's a time when business picks up for residential real estate, including new-home builders. New-home sales hit their fastest pace in 25 years late in 2017, and builder sentiment reached an 18-year high. This year, new-home sales are expected to increase by 7 percent, while existing-home sales are projected to grow 2.5 percent.

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