From theCommunity Mortgage Blog
Watch Out for These Myths!
Millions of people opt to purchase a custom-built home instead of finding a traditional residence. Many realtors service these optimistic potential homebuyers, but some are hesitant to get involved. This is almost always because of negative things heard about how custom home builders treat realtors and their clients. But, what if we told you that there are a lot of realtors that allow certain myths to distract them from cashing in on a money-making opportunity. If you're going to consider working in this type of market, you should clear the air first.
To help you out, we've included a list of five prevalent myths concerning home builders, realtors, and their clients.
Table of Contents:
Click any one of the myths to be directed to its location in this article.
- Myth #1 - "All Builders Are the Same"
- Myth #2 - "You're Forced to Custom Build"
- Myth #3 - "Builders Don't Want to Communicate"
- Myth #4 - "Builder Clients Will Never Come Back"
- Myth #5 - Smaller Homes Cost Less"
Myth #1 - "All Builders Are the Same"
All builders are not the same!
There are different types of builders that vary based on:
- Type of the home
- Price points
- Their relationship with co-op agents
Every builder will provide a different experience than another one.
You may have a terrific experience with one builder and have a horrible experience with another one.
This is why it's important to sit down with your client and have an in-depth interview to make sure expectations have been established from the get-go.
Myth #2 - "You're Forced to Custom Build"
Another myth is that the inventory is low on specialty homes and that your client will be forced to custom build their home from scratch.
In reality, some builders have homes available that your buyer can get into in as little as 2-3 months.
There are always options available for your client.
Myth #3 - "Builders Don't Want to Communicate"
This couldn't be anything further from the truth.
Builders are mainly concerned about the quality of their work and making the buyer happy.
When the buyer isn't happy, they don't get paid.
As the realtor, you will have all of the important details of your client that the builder wants to know.
If you can make their job easier, they will listen to you.
It's in their best interest to do so.
Myth #4 - "Builder Clients Will Never Come Back"
This is also not true.
If you focus on providing an outstanding experience to your client, they will come back.
Previous clients may:
- List the property for sale
- Buy another property
- Invest in more real estate
- Buy land
- Refer you to their friends and relatives
Any one of these scenarios will be ideal as you try to increase your word-of-mouth advertising and become a trusted go-to partner for previous clients.
Myth #5 - Smaller Homes Cost Less"
Some will say that a buyer should choose a smaller home since they will be saving money on the cost per square footage.
This is false.
The cost per square footage on custom built homes actually decrease as more space is added to the home.
This means that buyers won't save money in this fashion and can customize their home as they please.
As you can see, there are a whole lot of different myths that can prevent you from capitalizing on this great opportunity.
If you want to discuss working with some of our favorite builders and get started today, give us a call at (901) 759-4400 for more information.