By JF Ratthe

I remember at the beginning of my career when I was interviewing brokerages, one of the brokers told me I should get into new home construction right away. He said it was a great way to get business and buyers. Although I was ready and willing to try anything at this time, one of my fears was that since I was just starting out in real estate, having to learn the ABC’s of new developments just seemed too overwhelming at the time.

I’m sure you know the saying, “If I knew then what I know now.” I ended up doing new condo developments about a year after I started. And boy, did it ever help with my business! But I realize now that it would have been much easier to start learning everything about new construction as soon as I got my license, or before if possible.

Even today, a majority of experienced agents prefer to stay away from new construction. That makes it a great opportunity for new agents looking to become successful. There are three main reasons why sales reps stay clear of this all-too-important industry:

1) They simply don’t know enough (or anything) about the product and the process.  Builders will be happy to work with you in explaining how they work, what they look for in an agent and what products they have. Research their company through their website.

2) They want to get paid their commission sooner than six to 12 months down the road.

This is something most new agents are afraid of as well. Ask the builder/developer if they would advance a portion of the commission once the offer to purchase is free and clear of all conditions.

The potential to get leads for sellers and buyers from their listing has more positives than negatives. Plus you have a great-looking new home/condo to showcase.

3) They don’t want to limit their clientele and potential commissions.

I don’t believe you are limiting your clientele by working with new construction. This does not have to be your only source of income. It can become your secondary niche. If you have a neighbourhood as a niche market and developers start building there, you get access to more inventory.

If you are thinking of getting into new home sales, create a relationship with a home/condo builder right away. Start by explaining to them that although you are new, you are also eager to learn and sell their products. Ask if you could meet with them to learn how they work (builders and developers have their own specific processes and documents) and how you could start selling their products. Learn as much as you can about where they build, what they build and the unique qualities used in their building process.

I had no problem selling new construction. I learned early on that the key to getting leads was to have listings. And what better way to get buyers and sellers than with new construction? People are always looking to buy new. And get this: once they buy a new home from you, they will need someone to sell their current home. Boom, you now have two transactions.

One last bit of advice: Ask if you could start with one listing and prove yourself. Or see if you could co-list one of their homes with a more experienced agent. While you learn the trade, make sure you familiarize yourself as much as possible about flooring, plumbing, floor plans, insulation, roofing, construction schedules and all other facets of new home sales.

JF Ratthe is the sales & marketing manager at Karwood, the largest real estate development company in Newfoundland. He is the author of two books and founder of the real estate training program “7 Steps to Real Estate Success for New Agents”. Email [email protected].