Bob's Broker Buzz: Rancho Cucamonga

Holy Grail Pricing On New Homes

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<br />Early New Home Phases Are The Holy Grail</h3>
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<tr><td style="text-align: center;"><span style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><a href="http://bit.ly/12dO6jI" target="_blank"><img alt="Holy Grail Pricing on New Homes" border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqGTqmbvkTZ9rZ96-1SymdWFo0vaM16IfyXD7xpnZoPS1vKBBHRH4FN3radTqsSpDiVPAcznOylW573_hrG2WppJpNzLxG6Qh0iGHr1Snvg5wZED91kLwkbVq2AJP7jzXeiOMNIhCNeTg/s200/Holy-grail.jpg" title="Holy Grail Pricing on New Homes" width="108" /></a></span></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="http://bit.ly/12dO6jI" target="_blank">Phase One Pricing</a></td></tr>
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Many Realtors know that when it comes to new home purchases, the early phases seem to be the Holy Grail. <a href="http://bit.ly/12dO6jI" target="_blank">First phase homes</a> will have the lowest prices in the neighborhood. That's where pricing starts, and it always goes up from there.<br />
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In a Bad Market...</h3>
Even in a bad market the price goes up, though not very much. Phase one pricing and the final phase pricing may not be that far apart. Here's what happens: the prices may go up just a little bit, but the incentives may increase significantly. How do home builders sell new homes for more when the market is moving down? They keep piling on incentives. So a home in phase one may sell for $300,000 and the same home in the final phase may sell for $350,000. That process may have taken a year. The house in phase 1 may have come with a washer and dryer, while the house in phase 20 may have come with a washer, dryer and refrigerator along with backyard landscaping and possible window treatment. Home builders need to keep raising prices or buyers would just drop out all the way. Why would anybody stay in escrow if the person after them paid less than they paid for a similar home.<br />
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In a Good Market...</h3>
In a rising market, the first phase is still going to offer the lowest priced new homes. What usually happens is that fewer incentives will be offered with each phase. In today's market you no incentives. However, we are not in a typical market. In a typical market, you might get a washer / dryer and refrigerator or closing costs as an incentive, but in today's market prices keep going up and there are no incentives. In today's market, between the time you place a down payment and the time your home is built and escrow closes, you may have a significant amount of equity in your home due to rising prices.<br />
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So what should a Realtor do? </h3>
Every new home buyer wants to buy in the first phase. Realtors need to drive their clients to new home communities and register them on the buyer's first visit. New home builders often do not advertise new communities when they are building the models. When they start a new community they drop a sign that says "New Community Coming Soon." They often have a temporary trailer act as an on-site sales office to add prospects to an interest list, and they provide general information about the project. This is the opportune time for you to get your clients on the interest list. To get on the interest list clients need to provide proof of funds, or get pre-qualified  by the builders lender. There is typically a period of three or four months during which a builder creates this interest list. During that time they don't do much promoting or advertising.<br />
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When the builder decides to go to sale, they host a grand opening. The builder will call everybody on the interest list that has been pre-qualified, invite them to the grand opening, announce pricing, and write contracts on new homes based on the names that are first on the list and qualified to purchase a home.<br />
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In Summary...</h3>
Stay on the lookout for new home communities, register your clients early, and both you and your client will be pleased with the outcome!<br />
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Early New Home Phases Are The Holy Grail Phase One Pricing Many Realtors know that when it comes to new home purchases, the early ...

New Homes Offer Big Opportunities for Realtors

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<tr><td class="tr-caption" style="text-align: center;"><i><span style="font-size: x-small;">Renaissance at Avellino, Plan 1, Elevation C</span></i></td></tr>
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<b style="font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; line-height: 17.99715805053711px;"><a href="http://www.lewisbroker.com/" target="_blank"><span style="color: #0b5394;">Big Opportunities for Realtors!</span></a></b><br />
<span style="font-size: 12.727272033691406px;"><span style="font-family: Arial, Helvetica, sans-serif;">New home sales are a wonderful opportunity for realtors to earn a huge payday without a whole lot of work, at least no contract writing. In a typical market realtor sales at new home tracts average between 40-50%. I like keeping you infor</span></span><span class="text_exposed_show" style="background-color: white; display: inline; font-size: 12.727272033691406px; line-height: 17.99715805053711px;"><span style="font-family: Arial, Helvetica, sans-serif;">med as to percentages of broker deals at new home communities the Lewis Company is involved with. The builders have a very clear understanding of the importance of realtors.<span style="color: #333333;"> </span></span></span><span class="text_exposed_show" style="background-color: white; display: inline; font-size: 12.727272033691406px; line-height: 17.99715805053711px;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
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<span class="text_exposed_show" style="background-color: white; display: inline; font-size: 12.727272033691406px; line-height: 17.99715805053711px;"><span style="font-family: Arial, Helvetica, sans-serif;">Classics at Avellino by Van Daele 45 sold, 23 with realtors <b>(51%)</b><br /><br />Renaissance at Avellino by Van Daele 34 sales, 28 with realtors <b>(82%)</b><br /><br />Harvest by Beazer 30 sold, 24 with realtors <b>(80%)</b><br /><br />Van Daele Estates at Etiwanda by Van Daele 42 sold, 26 with realtors <b>(61%)</b></span></span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 17.984375px;">Cheers, Bob Karatz</span></span></div>

Renaissance at Avellino, Plan 1, Elevation C Big Opportunities for Realtors! New home sales are a wonderful opportunity for realtors...

Welcome to my blog

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<span style="font-family: Calibri;">This is my first official blog, although I’ve been voicing my opinion on the subject of real estate longer than most readers have been able to read.<span style="mso-spacerun: yes;">  </span>I work for The Lewis Group of Companies as Director of Broker Relations.<span style="mso-spacerun: yes;">  </span><span style="mso-spacerun: yes;"> </span>I’m the liaison between the Lewis Company and the real estate community.<span style="mso-spacerun: yes;">  </span>I pass on important information regarding our new home developments and our apartment communities.<span style="mso-spacerun: yes;">  </span>Both sides work closely with realtors and both sides pay referrals and commissions.<span style="mso-spacerun: yes;">  </span>One of the favorite parts about my job is to visit real estate offices and share information with agents regarding the Lewis Company along with the housing and rental markets. <span style="mso-spacerun: yes;"> </span>I hope that some of the material is original and fresh, but I’m sure that most of it will be useful and worthwhile if you’re involved in the buying, selling or leasing of real estate in the Inland Empire. <span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">I look forward to my future of blogging with you.</span></div>
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This is my first official blog, although I’ve been voicing my opinion on the subject of real estate longer than most readers have been ab...