Tidewater Builders Association

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Tidewater Builders Association

• May 24, 2007

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Market Overview

• April EOM Overall REIN Listing Inventory
• 12,779 units 46 Change from 2006
• Southside 9,746 Peninsula 3,033
• April EOM Average Market Time 61 Days
• There was an influx of resale inventory put into
  the market place in the Fall 2005 because Sellers
  thought the ceiling for pricing had been
  achieved . . . and wanted to get what their
  neighbors got!
• Potential Buyers now are trying to figure out
  where the floor is before they buy.

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• We must return to the Basics of Selling
• Because of increased inventory, your prospect is
  looking at re-sale first and it can often show
  better than the standing inventory in a new home
  subdivision

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Case In pointPhotos
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• Be sure that you demonstrate the benefits of
  buying the home NEW and educate the prospect on
  the risks of buying USED
• Have a flyer listing the benefits on the counter
  when it is shown itemizing the differences
  between new construction and resale

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• Price your home realistically. The incentives
  sound great but the bottom line is to take it off
  the price.
• If you are giving incentivesdont offer them up
  front. Get the traffic in the door and let the
  Agent use an incentive to CLOSE the sale.
  Otherwise Buyers see the incentives as a place to
  START their negotiations.

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• Is your inventory getting exposure?
• Are there signs up with info flyers on it for
  traffic that visits outside site hours?
• Is someone readily answering the phone when
  an inquiry comes in and closing them for an appt
  to see it?
• Are there updated info in the REIN system?

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Make sure there are photos everywhereHeres an
example 1,100,000 house with No Photo
Availablethere are so many choices an agent
will move on.

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The Market Is . . .
Our market pace slowed dramaticallybecause we
lost our pricing discipline.
Move the green line down and the red line will
move back up!
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• Bottom Line
• The market is what the market is and WE must
  believe that its a good time to buy or the
  buyers will sense it.
• The solution is in our handsPrice it right, use
  incentives effectively, and educate the buyer on
  why they should buy your home.