Tips for Selling New Construction

We spend a lot of time helping potential home buyers understand the advantages of buying a newly constructed home versus an existing home — the energy efficiencies, opportunities for customization, smart home construction and features, and highly amenitized neighborhoods — to name a few.

Understanding those advantages is important for Realtors, as well. Another essential lesson? Knowing how to sell a newly constructed home versus an existing home. Here are a few pointers:

Get to Know Builders

This first tip will benefit you whether you’re selling a new-build or existing home. Learn as much as you can about popular builders in your area, what they are known for, how much architectural customization they allow to standard floor plans, if they have a design center, the variety of options and upgrades they offer, etc. Make sure to stay up-to-date on incentives that many builders offer throughout the year, particularly if you know your client might appreciate help with closing costs or will want to make several upgrades. Builders often are a resource for financing, with many having preferred lenders.

Understand Construction Timing

Unless they are nearing close-out in a community, most builders will have a variety of homesites from which to choose when building from the ground up. They might also have homes already underway and in various stages of construction. Finally, they might have homes that are fully completed and ready for immediate move-in. Knowing what’s available — and understanding how long construction takes — are very important to meeting your client’s needs. Building from the ground up can take three to six months — possibly longer if the home is custom or some of the finishes need to be specially ordered. An inventory home that has already started construction will take less time depending on how far along construction is. If your clients have all of their financing in order, they could close on a completed home in less than a month.

Learn What Happens After Closing

When you sell a pre-owned home, that’s it. Your client likely never again hears from the seller. Not so on a new-build home. Not only do some builders follow up with buyers after closing, all offer warranties. Typically, a structural warranty (think foundation, load-bearing walls and roof) will be good for six to 10 years. A mechanical warranty that covers plumbing, electrical, etc., will be valid for two years. And most builders also offer a one-year warranty for workmanship. This is in addition to the warranties manufacturers offer on new appliances.

Know the Community

This is another tip that could be good for both resale and new homes, but it’s really essential for new construction that is within a planned community. These neighborhoods are often governed by a Homeowners Association (HOA) and have a specific set of do’s and don’t’s for residents. These can include how many cars could be parked outside, how many dogs are allowed, what type — if any — accessory buildings can be constructed, etc. Pools, fences, exterior paint colors and other features will often need to be approved by the association. While this may sound a little restrictive, these rules safeguard the value of your home by preserving the quality of the neighborhood. In fact, according to the National Association of Realtors, homes in HOA communities are worth about 5 percent more than those in neighborhoods without an HOA.

Another benefit to an HOA community is lifestyle, as many HOAs have dedicated staff members who host a variety of resident events. Residents of Johnson Development communities enjoy numerous events each month. It’s a great way for neighbors to meet each other and form friendships! Communities with an HOA typically have a higher level of amenities than ones without, and the pools, parks, sports courts and other amenities are maintained by the HOA.

Find out from your client if access to amenities such as pools, fitness centers, clubhouses and more is important — and knowing which amenities are most important can help you determine which community they might like best. But if your client really wants to park an RV in his driveway full time, you might want to steer them away from an HOA-managed community.

We hope this provides some insight into selling a newly built home. Watch our events page for news of classes we occasionally hold that dive deeper into this topic.