The Advantages of New Home Sales vs. Resale
If you choose a career in real estate sales, your success will be defined by your ability to find and excel within your niche. In real estate, there are two types of sales opportunities, new home sales and the resale of existing properties. Both present unique challenges and opportunities, but with existing home inventory low, now is a great time to explore the benefits of a career in new construction home sales.
New home sales involve representing builders and developers in selling newly constructed properties. This segment of the real estate market has several distinct advantages over selling existing real estate.
Abundant inventory
New home developments offer a plentiful inventory, allowing you to sell a greater volume of homes faster compared to resale, which may involve dealing with limited listings. The existing home inventory is currently 46% below the historical average going back to 1999. On the other hand, new construction inventory is growing, with 29 percent single-family home starts in the west and 12.5 percent in the midwest compared to last year.
Customers come to you
In new home sales, clients typically come to you. They’re often seeking the latest developments, floor plans, and customizations available, making your job more about showcasing what’s offered instead of hunting for properties.
Income and benefits
Positions often come with a base salary plus commission, providing you with a regular paycheck alongside the potential for substantial earnings. Many new home sales positions also offer attractive benefits, including health insurance.
Marketing support
New construction sales offices typically pay for marketing and professional support, giving you an edge in reaching potential homebuyers effectively. This summer, just over 50 percent of home builders offered buyer incentives. Marketing and promotions can be costly, and often come out of your own pocket when working as a real estate agent for existing homes.
Newer and easier-to-sell product
New homes come equipped with modern amenities and features, making them easier to sell to discerning buyers looking for the latest in design and technology. Because the homes are new, there are usually fewer inspection or appraisal issues compared to other properties, reducing the chances of last-minute complications in the sales process.
If you decide to learn more about new home sales, there are staffing companies that provide an accessible entry point to the field. Contacting a new construction staffing firm can help you learn the business, gain experience with major homebuilders, and ultimately, unlock a rewarding career in New Home Sales.
Smart Staffing Solutions focuses on connecting qualified new home sales professionals, or those interested in learning ,with reputable builders. To learn more, contact us today.
Sources.
- Housingwire. Homebuilders are all smiles right now – HousingWire. Accessed Sept. 25, 2023.
- Forbes. Housing Market Predictions For 2023: When Will Home Prices Be Affordable Again? – Forbes Advisor. Accessed Sept. 25, 2023.
- National Association of Realtors. New Construction Makes Up Record Share of Inventory. Accessed Sept. 25, 2023.