Selling existing homes near new construction

Selling existing homes near new construction

Your clients’ home is in an area with new construction nearby. How can you best market your sellers’ existing home when there are new ones available?

Research the Competition
Check out the builder’s website and take a tour of a comparable model property. See how the features of your clients’ home compare with what’s offered by the builder. Look at countertops, cabinet and door hardware, faucets, light fixtures, appliances, floors, smart-home features, and HVAC systems. Note which features are standard and which are options.

Go Beyond Home Staging
Buyers of all types of properties want to envision themselves living in the home—not see the current occupants’ belongings or taste. However, when you’re competing against new construction, that desire becomes even stronger. New construction means no one has ever lived in the property. Therefore, you must help your clients return their house as close as possible to new condition.

Ideally, the sellers would move out—to their new home or a family member’s place. If that’s not possible, encourage your clients to put as much furniture and possessions as possible in storage, to repaint any room that could use it, and to commit to regular, professional cleaning while the property is on the market.

Emphasize the Differences
Does your clients’ home have an additional bedroom, upgraded appliances, or a deck? Even if the home’s features are practically identical to what is offered in the new construction, look for other differences. Perhaps the home is on a corner lot, in a quieter area, closer to schools or the community pool, has larger trees, or some higher-grade construction materials. Be sure to emphasize anything that makes your clients’ property more desirable when compared to the new homes nearby.

Make an Attractive Deal
Part of your research should include new-construction incentives. Builders sometimes offer closing-cost assistance or throw in upgrades. Your clients should price their property with those incentives in mind and perhaps offer some of their own. They could offer discounts to make up for features that lack in comparison to the new builds—for example, cash toward better appliances. Your sellers could pay for movers, a home warranty, or closing costs, or agree to leave behind furniture or other property that the buyers want.

Not every homebuyer will want an existing home when a new one is an option. However, proper research and preparation will give your sellers a better chance to attract buyers and maximize their sales price.

Legal Disclaimer: The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

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