By Carrie Resch, Contributing Writer
As real estate agents increasingly work with builders to sell new home construction, area builders have recommendations to help smooth the process.
At the May Northeast Florida Builders Association Lunch & Learn sponsored by Wells Fargo, Jerry Dean, division president of Vintage Estate Homes, and Jeff Ferguson, division president of CalAtlantic Homes, offered their insight during a discussion with real estate agents.
They offered advice for how real estate agents can better work with site agents and builders and how changes in consumer tastes are affecting the building process.
Initial client visit
and meetings
Dean suggested real estate agents do their due diligence.
First, call the site agent to learn what information they can provide about the product, the features and incentives.
By knowing what the builder is offering upfront, there’s no back-and-forth between the real estate agent and the site agent in front of the buyer.
He also recommended being honest with the site agent. For example, agents should know the amount at which their clients have been prequalified.
“Don’t be afraid to ask a lot of questions,” Ferguson said.
As far as meetings, Ferguson said it is important to register the client with the builder the first time they come in. Beyond that, he said it is up to the real estate agent how involved they want to be in the process.
He recommended that the first time a real estate agent sells a new builder’s product, the agent should be involved at every step and attend every meeting, including the closing, to become acquainted with the process.
He also encouraged customers and real estate agents to schedule a follow-up appointment the week after the contract is signed to review paperwork, assuring everything is correct.
Dean recommended real estate agents attend the pre-construction meeting to go over the process step-by-step. That will give clients an opportunity to make sure all requested changes are listed in the contract before construction begins, after which it might be too late to make changes.
Point of contact
If a buyer has concerns, the first point of contact should be the site agent.
The site agent is the “face of the company” and knows how to find the answers, Dean advised. From there, if you don’t think the problem was handled effectively, you can move up the chain.
Ask to talk to the manager. Typically, Ferguson said, you will be sent to a sales manager or a vice president of sales, and they may bring in a construction manager or vice president of construction. The final stop would be to the division president.
There always are issues during the building process, Ferguson stressed.
“You really need to evaluate how your builder is doing based on how they react to those issues – not get overly stressed out about it,” he said.
Buying trends
Dean said the buying trend has moved from the investor-driven market of 10-15 years ago, to a homeowner’s market, and with that comes a lot of customization.
Customer expectations are also a lot higher, Ferguson observed. For him, he believes the days of builders building whatever they want and customers buying it are over.
“I don’t see customer sentiment moving back in that direction,” he said.
“Customers do seem to be a little more demanding and a little more discerning today,” Ferguson said. “It’s not uncommon that somebody will shop for a home for three months, four months, six months before they finally make a decision and sign a contract.”
That’s why reviewing the contract is critical, he said. By the time customers sign a contract, they may have made changes over the span of several months. They will want to make sure they will receive all they’ve requested.
In terms of design, customers are moving away from formal living and dining rooms and opting for larger family rooms, Ferguson said.
There also is a trend for luxurious master baths and big, open kitchens.
Dean said his company has installed some commercial kitchen equipment.
Outdoor living space also is popular. For example, instead of French doors, Dean said customers are opting for sliding pocket doors that open to an outdoor space with a summer kitchen or fire pit.
With consumers gathering inspiration from websites such as Pinterest or Houzz, they have interior design ideas to incorporate into their homes. Customers also tend to change their minds frequently. All of this impacts the time it takes for the construction.
“There’s a lot of stopping and starting when customers change their minds. Employees have to touch the plan over and over again,” Ferguson said.
One of the biggest challenges is delivering value to customers when they seek a product, such as a fixture or appliance, not offered by the builder.
Standardization is one way builders can provide value.
Straying can mean the builder will have to buy an item at cost and then pay an installer.
“We need to know what’s going in upfront so we can focus on getting the thing built quickly and get you closed,” Ferguson said.
In addition to honesty, the final advice was communication.
“I think communication is key in anything you do,” Dean said. “Every issue that I’ve ever seen in this industry has always come down to simple communication.”