Yesterday, I wrote a post sharing my thoughts on new construction in this “challenging market” that continues to have “positive pockets” with business ready to be created. The market is challenging, but it’s an active market, if you are focused on the right niche.
Every market is different and real estate is local. However, land prices have not been at these astronomically low prices for decades. We have builders who are actively searching for individual lots to build entry level new homes (2,000 s. f.) in the spring.
I have recently started looking for land for our builders. The easiest way to approach this task is with direct mail marketing. Our MLS provides “public record” information and each category type of real estate can be separated. I search for land with square footage of up to 5 acres.
I create a database of names and addresses of land owners in all of the surrounding towns, and mail them a postcard asking if they are interested in selling their land and sharing with them that we have builders.
I also inform them that there will not be a commission charged to them!!!! I have a policy that if I’m selling a lot to a builder, I will market the end product until the home is closed, but I will not charge a commission on the lot deal. I never double dip.
I’m sure there will be adversity to that last statement, but that’s how new construction transactions happen. I feed my builders, and they, in turn, keep my team very busy. Doing business with builders is not the same as doing business with a homeowner. They are different entities and must be handled differently.
My phone rings constantly from land owners. If you have land, and you do any type of Internet marketing, the builders will find you. Once they realize that you have a constant flow of land listings, they will want to be attached at the hip, and that means consistent new inventory.
I’m sharing the method I use to secure Iots in my area. Don’t be shortsighted about this method. It’s good business. Good business practice leads to a consist flow of new construction inventory from builders.
I opted NOT to wear my bulletproof vest today.....I'll take whatever challenge comes my way!!!
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