4. Price
The price of a new home can be a touchy subject between builders and buyer’s agents, who work to get the best deal for their clients. Realtors say they realize that builders need to make a profit, but “we do expect them to price their homes fairly. If you are always getting low ball offers, check where you stand price per foot with your competitors and other homes,” says Oklahoma agent Fields.
The biggest mistake builders make is that they price their homes based on their costs rather than on market conditions, says Garry Benson, managing broker at GPB Marketing Solutions in Chicago. “The market doesn’t care how much the builder had to spend to buy the land or build the home. They only care about the market value.”
Melissa Hailey
Realtors don’t understand why the price of houses in new communities increases so quickly. “I feel as though every house that is built gets bigger, better, and more expensive,” says David. This is offputting to many of her clients who are young buyers or empty nesters on a budget. “It would be amazing if there was a builder that could supply us with reasonable, not overly upgraded homes that could appeal to not only first time homebuyers but also downsizers at an affordable price point,” she says.
When prices do rise, it’s important that builders honor quotes, says Plano, Texas, broker Melissa Hailey, who was shocked when a builder gave her clients a price and then wanted a $3,000 increase four days later when they sat down to sign the paperwork. Her buyers, who couldn’t afford the increase, were heartbroken.
5. Multiple Listing Service
The multiple listing service (MLS) is one of a Realtor’s most powerful tools, letting them know when new houses come on the market and allowing them to see recent sales. But many builders don’t provide enough information in their listings about variations and options, according to Albany, N.Y., broker Wayne Richard.
“If you consistently list on the MLS your to-be-built four-bedroom, 2.5-bath colonial you’ll get filtered out of the buyer (and Realtor) searching for a five bedroom, or a third garage, or an in-law suite,” he says. “You have to tell both buyers and Realtors that you can build those variations.”
