Brought to you by the Builder Realtor Relations Committee of the Sales and Marketing Council of the Northeast Florida Builders Association
Q. Are you seeing a pick-up in new construction sales this year?
A. Soltis: Yes, since the beginning of the year we have seen an increase in visitors to our models, which has resulted in a higher sales volume in February, March and April. We have also opened 3 new models since February in top-rated locations and believe that has attributed to our recent successes.
A. Chapman: Yes, we are thrilled we have seen a consistent increase with new traffic, our Realtor partner activity and new home sales month –over-month. Our sales counselors have invited our Realtor partners and their customers to come out and tour the many new features Standard Pacific Homes has to offer. We feel this proactive approach is one of the reasons we have been successful at increasing our activity.
Q. With short sales and foreclosures still out there, how are your site agents encouraging Realtors to bring the buyers to your models?
A. Soltis: Our agents host special events at their models and also participate in networking functions throughout the area. Our site agents take time to visit Realtor offices in their area to inform them about new inventory homes and new specials we are offering. We also list every inventory home in MLS and have a Realtor/internet consultant answering calls regarding all of our homes. Most Realtors understand the ease of working with a builder and are happy to bring their buyers to us when it fits their customer’s needs.
A. Chapman: Our sales counselors have encouraged our Realtor partners and their customers to tour our homes that showcase many environmentally friendly and energy efficient features. We are finding that prospects do see the value in our new homes because we can offer them an Energy Star Certified Home over a resale, short sale or foreclosure. In complying with strict Energy Star building standards and third-party inspections, Standard Pacific Homes is up to 45 percent more efficient than an older resale home.
Q. How well are builders competing with short sales and foreclosures?
A. Soltis: I believe that short sales/foreclosures and new home construction fall under two different categories. Simply put, you get what you pay for. I think buyers (and Realtors) are truly seeing the value of new home construction versus a short sale. While they prefer to pay short sale pricing for a new home (and who wouldn’t?) that’s just not possible in most situations. Plus, the ease of working with a builder is most often worth it.
A. Chapman: We offer our customers the choice of a quick move-in home as well as a customized, to-be-built home; therefore, we always have inventory homes available at various stages of construction. We have seen an increase for immediate move-in homes recently and have been successful at producing an even flow of inventory for our customers’ needs. We send out weekly correspondence to our Realtors and always showcase a variety of our inventory homes.
Q. Has the percentage of Realtors selling new construction increased this year? Are you doing incentives for the Realtors and/or buyers? If so, is this having a substantial effect on sales?
A. Soltis: The percentage of Realtors selling our homes has remained steady this year compared to previous years. We have been offering additional Realtor bonuses ranging from additional commission to Apple iPads and we have received great feedback from brokers and Realtors. Not only do we offer incentives to the Realtor, but we also offer incentives to our buyers as well. However, today each buyer has different buying needs and we try to meet those needs as best as we can. As far as having a substantial effect on sales, I believe the incentives attract more visits to our models and consideration of our homes which ultimately leads to more sales.
A. Chapman: Our sales counselors develop long-lasting relationships with our Realtor partners as we value their repeat business. Over 75 percent of our customers this year partnered with a Realtor when searching for the home they purchased. In appreciation for their hard work, we occasionally offer special perks and rewards to Realtors. We are currently offering a bonus commission on our immediate move-in homes as well as offering additional closing cost assistance through Standard Pacific Mortgage for our customers. Knowing that buyers trust Realtors and Realtors encourage new home construction, we find it mutually profitable to partner with, educate and provide superior customer service to the broker neighborhood so they will want to show Standard Pacific Homes when working with their prospects.
Q. Is this a good time for builders to start building spec homes again?
A. Soltis: At this time, I don’t believe the demand is where it needs to be right now to stock up with lots of builder inventory. If we can get our active listings down, then the demand may increase.
A. Chapman: We have seen an increase for immediate move-in homes recently and have been successful at producing an even flow of inventory for our customers’ needs. We send out weekly correspondence to our Realtors and always showcase a variety of our inventory homes.