Busting the Myths: Five Misconceptions About New Homes
New construction homes are becoming more popular again. But there are some misconceptions about new homes that prevent many buyers from taking the plunge.
Here are five common myths and truths behind new construction:
1. Financing new homes is hard.
New construction homes can actually be easier to finance than an existing property. And while builders may offer incentives to your clients to use a recommended lender, referring them to me enables them to compare their offers.
2. There's no way to inspect a new home.
Most homebuyers are invited to inspect a home while it's being built after the initial framing and walls are complete. Local government will also inspect a property before occupancy is approved.
3. New homes all look the same.
There are usually plenty of opportunities for homebuyers to customize their new construction home. Existing homes are the ones sold "as is."
4. Pre-owned homes are better.
Tougher building standards, improved codes, and more energy-efficient features mean that new homes keep getting better.
5. New homes don't need an agent.
Wrong again. This may be true for experienced investors. But new homebuyers can benefit from having a real estate agent help negotiate the deal.1
Three Ways to Go Viral in Digital Marketing
It's no secret that inflation and rising interest rates have resulted in a major slowdown in the current housing market. In fact, 92% of millennials say inflation has influenced their homebuying decisions. But many have decided to move ahead anyway this year. Here are ways for you to help make their homeownership dreams come true.
For starters, millennials should consider buying a fixer-upper (ask me about rehab loans for these properties) or smaller "starter" home. They could also expand their search beyond the city limits to find more affordable options. In addition, an adjustable-rate mortgage (ARM) may be a smart option if your millennial clients are trying to keep costs down. That's because an ARM's initial interest rate is lower than a traditional, fixed-rate mortgage, and will not adjust for 3 to 10 years.2
Will Open House Visitors Smell a Deal?
Potential buyers' sense of smell can be a powerful tool in real estate. You can use scent to your advantage by choosing the right ones...those that create a pleasant and calming atmosphere for potential homebuyers.
The right smells can evoke feelings of comfort and cleanliness. The wrong smells, like cigarette smoke and pet odors, can be an unpleasant distraction and even result in a home lingering on the market.
Top scents include citrus, vanilla, pine, cedar, jasmine, and cinnamon. But remember, subtlety is key. Buyers should be focused on the house and not distracted by its smell. Ultimately, smell can be used to subconsciously and positively affect a prospective buyer's viewing experience. That means a specific scent could potentially have them gravitating to your clients' homes.3
Four Prospecting Tips to Maximize Commissions
Understanding how to protect yourself from potential legal claims is critical, especially as a cooling real estate market has led to an increase in lawsuits against agents.
Real estate prospecting requires dedication and effort, as you'll spend hours actively reaching out to clients and prospects to generate business. Successful agents don't sit around waiting for the phone to ring.
Here are four prospecting tips that will help you get results and maximize your commissions:
1. Collect and follow the data.
Real estate agents who do their homework are at a distinct advantage in real estate prospecting. Track your response rates, what's working, and everything you're doing to move the dial.
2. Master circle prospecting.
Circle prospecting involves reaching out to about 30 homeowners who live near your last listing or sale. Share real estate activity in their area with them, together with how you can help them reach their goals.
3. Reach out to expired listings daily.
These can be a prime opportunity for agents because they've already tried to sell their home, and may have put their plans on temporary hold. There's a good chance that they still want to find a homebuyer and you could become their new agent.
4. Contact FSBO sellers daily.
FSBO homeowners have made it clear that they're ready to sell their home. But they don't think they need a real estate agent. Provide proof that homes sold by agents typically sell for 32% more than FSBO homes. This will help make up for any concerns about paying your commission.4
How to Help Sellers Declutter Their Homes and Lives
Decluttering a home is an important first step for would-be sellers prior to putting their property up for sale. There are several methods for helping home sellers declutter before any photographs are taken.
Experts recommend they start by grouping items into five categories: keep, sell, donate, toss, and store categories. Selling items can be done through estate sales specialists, consignment shops, or online through eBay, OfferUp, and Facebook Marketplace. In addition, Goodwill, The Salvation Army, and Habitat for Humanity welcome clothing, furniture, and other donations. Unwanted items can be tossed through a trash hauling company or set out for your city's scheduled bulky trash pickup. And finally, storing items sellers want to keep is an option. Recommend that they find a storage unit that's secure, insured, climate-controlled, and offers regular access.5
Sources: 1reiwealthmag.com;, 2cnbc.com, 3realestate.usnews.com, 4theclose.com, 5nar.realtor + rismedia.com
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