Bob's Broker Buzz: shady trails

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 ...

Agent Builder Palooza

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Join us for Agent / Builder Palooza 2013, Thursday, May 2nd. No registration needed, just show up.  But get here early because it’s crowded!</div>
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Seven years ago at the height of the real estate
market,  broker participation averaged
40-50%  at new home communities.  Today, broker participation  is between 80-90% due to lack of resale
inventory.  Seven years ago most new home
builders made buyers sign an “Occupancy Addendum”,  stating that they would live in the home for
at least one year.  Today there is no
such addendum,  Investors are welcome.</div>
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Wouldn’t it be helpful to know where new homes are being
built, what the floor plans look like, if they offer single stories, what the
commissions are,  how to register a
client and so much more?</div>
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<li>Meet top Southern California home builders</li>
<li>Learn about higher commissions and builder / broker programs</li>
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The Agent / Builder Palooza 2013 is an event that gives agents and new home
builders an opportunity to network
together and help each other grow their businesses.</div>
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If you’re working with investors, many agents forget that
new homes offer tremendous opportunities for their clients.  Price increases with each new phase release are similar to the price increases we saw seven years ago.  If you’re working with first time or move up
buyers, wouldn’t it be helpful to know where a builder has communities or is
planning on opening a new community? The new home builders will be bringing their standing inventory list
with them. How important is that to know?</div>
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Join us for Agent / Builder Palooza 2013, Thursday, May 2nd. No registration needed, just show up. But get here early because it’s crow...

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>
<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><br />
<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>