New home construction is one of those concepts where real estate agents (and the general public for that matter) have trouble wrapping their heads around.
If can be especially daunting when agents represent a client who wants to build a new home-have to negotiate the contract with a builder-and yet, they know very little about the process. In fact, the agent could be a "problem child" simply because they don't know what goes into building a new home.
So, why not create a New Construction Boot Camp for your real estate agents-and invite three builders to be guest speakers for a day.
Why three builders? It gives them/you the opportunity to showcase each of their new home designs and it also provides your real estate agents with different perspectives and points of view.
The cool part is I've written the outline for the boot camp for you, so all you have to do is give it to your builders to follow. You can use it to create a handout or reference booklet. And there's even a section for you to explain financing options.
Oh, and if you have time, you also might want to include a "field trip" to view a new home being built.
Here's the outline to follow to create your very own New Construction Boot Camp:
Builder No. 1 talks about finding land. Topics include Subdivision Lots-Pros & Cons (including Association Dues); Vacant Land-What to watch out for, such as being well and septic suitable; Acreage-Appraisal/Value Issues, including excessive acreage; Environmental issues such as flood zones and wet lands; and Construction Contracts vs. Purchase Agreements (you may want to provide a sample contract).
Builder No. 2 can discuss: What to look for when choosing a builder; Permits & Inspection Process; Effective communication between buyer and builder; Subcontractor Do's & Don'ts; Stages of Construction and Timelines, including what could cause delays; and Warranties.
After the second speaker, schedule a lunch break. Resume with Builder No. 3 on choosing a home design, new types of building materials, new housing trends, choosing upgrades and final inspections.
Then it is the loan originator's turn, where you can discuss the various types of construction loans, what are the investor rules, rate lock-in options and property taxes.
I suggest that you create a workbook, and of course, include your contact info, picture and picture of each builder involved. The booklet could simply be pages, with the outline heading above (the rest of the page blank) where the agents can take notes. This will serve as a reference when an agent is working with a buyer who wants to build.
To make it really fun (and memorable), give each attendee a yellow hard hat. You can buy them at www.OrientalTrading.com (key word "Hard Hat") and they run about $1 each. Create labels with the names of each of the attendees, stick it on the hard hat, and give to them as a "graduation" gift!
Karen Deis is president of
