If you’re like every other Realtor I’ve spoken to in 2024, you have so many clients that are ready to buy if you could just find them a house!

How would you like to grow your sellable inventory (and ultimately your sales!) by 25% in 2025? Well the news is that the inventory you’re missing is hiding in plain sight: new construction!

The Untapped Potential of New Construction

In many markets, such as Cincinnati, new construction properties account for about 25% of MLS listings. However, the actual number might be even higher, as many builders don’t list all their inventory on the MLS. This inventory presents a golden opportunity for Realtors that are comfortable selling new construction to make more sales.

Overcoming Misconceptions

There seems to be a persistent misunderstanding and sometimes animosity between builders and Realtors. Realtors often feel sidelined when clients visit new construction sites without them, and builders sometimes perceive Realtors as merely looking for a quick commission they didn’t earn. The key to bridging this gap – and growing your sellable inventory, and ultimately your sales by as much as 25% – is professionalism.

Adding New Construction to Your Sellable Inventory

Here’s how you can integrate new construction into your sales strategy and capitalize on this substantial market segment:

1. Early Integration: During your buyer consultations, inquire if your clients are considering new construction. Introducing this option early in the buying process is crucial since building a home can take longer than purchasing an existing one.

2. Buyer Broker Agreement: Ensure that a buyer broker agreement is in place. This contract not only formalizes your role but also guarantees your commission upon the successful closing of a new construction deal. Plus, it’s required now anyway!

3. Explore and Educate: Familiarize yourself with local new construction communities and the unique features they offer. Educating your clients about the benefits of new construction, such as modern amenities, customization options, contemporary floorplans, and enjoying low- to no-maintenance for many years, can help pique their interest.

4. Simplified Process: Once under contract with new construction, much of the transactional heavy lifting is handled by the builder’s representatives. This can mean less day-to-day management for you. That being said, you should still keep an eye on the process and ensure everything runs smoothly.

5. Financial Incentives: New construction often comes with builder incentives such as rate buydowns, which can make these homes more affordable for buyers. The win for you is that new construction can command higher prices, potentially increasing your commissions.

6. Additional Perks: Some larger builders offer additional incentives for Realtors who frequently sell their properties, such as bonuses (make sure they are compliant with your Buyer Broker agreement!) or even vacations.

Leverage New Construction for Sales Growth

By approaching this niche with the same professionalism and dedication you apply to traditional sales, you can overcome any industry stigma and build profitable relationships with builders. Embracing new construction sales can substantially increase your inventory and ultimately your sales in today’s tight market. So, are you ready to grow your sellable inventory – and ultimately your sales – by 25% in 2025?

Peter Chabris
Lockbox
CEO, The Chabris Group, Cincinnati
Keller Williams Seven Hills Realty

Stay tuned for more insights into maximizing your real estate sales potential!