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New Construction Class

New Construction Class
by

Rob Phyle

on 10 July 2015

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Transcript of New Construction Class

The Beginner's guide to New Construction Sales
WHO
New Construction as
a Revenue Source

WHAT
WHY
WHERE
National
Production
Custom
Large volume, entire neighborhoods, limited choices
Local or Regional, shared neighborhoods, unlimited choices.
Local, Open neighborhoods/lots, unlimited choices-to a point.
National
Listing side
Typically Full Time employee’s
Share the models with teams: 7 day schedule
Compensation: hourly, salary, commission
Follow specific methodologies, process’s
May not be allowed to list backups or practice any other real estate.
May have own Financing and offer additional incentives.
Buying side
Quick build/close
Agent involvement-L
Client knows what to expect via good models
Negotiating can be tough
Choose Plan A, B, or C
Agent Registration
Production
Listing side
Independent agent /builder broker
May have own model and neighborhood
Compensation usually commission/draw
Process’s/procedures but flexible
Buying side
Can leverage competition
Need to stay involved
Builder expectation of your involvement-M
Agent Registration
Custom
Listing side
Independent agent/builder may have multiple broker contracts
Compensation commission
May or may not have models at certain times
Agent input on area’s/style’s/price points
Agent much more involved in process
Buying side
Very involved-take notes
Infinite options
Find lot separately
More down $$/refundable?
Napkin drawings
Agent involvement-H
Agent Registration
Models
Specs
To-be-builts
Models: Existing homes used as a sales center, or to showcase options, and upgrades. Some are for sale while other may not be.
Specs: Homes built specifically to sell, usually NOT fully loaded as models, or from a sale that fell through.
To-Be-Builts: A Pre-configured home plan listed on the MLS. Always check MLS if setting up appointments!
WHY:
Differentiate yourself with an additional area of expertise.
Commissions and bonus’s can be higher.
Additional exposure through annual events such as Parade of Homes and Spring Preview.
Resale product in 7 years?
MLS
BATC
Hunt
Builders Association of the Twin Cities
www.batc.org
Hunt: To drive around and look for lots
Differences between New Construction and Pre-Owned Homes
Appreciation
Green
Money Pit
Warranty
Community
Day 2
Imagination
Shiny
Tax
Energy efficient/lower HVAC $$
New Everything-no updates or repairs
MN Statutory Warranty
Shared ammenities, walking paths, pools, etc
30 day/1 year walkthrough
Mechanical/Appliance Warranties
Client design/products/layout/colors
New Car smell not someone else's dirt
Year 1 Jan Tax Year 2
No House
Dirt Only
Lot tax **$150yr
Construction begins
Year 2 Jan Tax Year 3
House
Lot Tax **$150yr
Year 3 Tax Year 4
House
Lot/House Full Tax
2012..............................2013..............................2014..............................2015
No House No House-House House House
Lot Tax Lot Tax Lot Tax Full Tax
Tax Man for 2013 Tax Man for 2014 Tax Man for 2015 Etc...
Understanding the Sales Process
Plat Maps
Blue Prints
Survey
ACC
Purchase Agreements
Options
Change Orders
Your Buddies
Time Frame
Rob Phyle
Broker, Realtor
Certified New Construction Specialist, CSP
Graduate, Realtor Institute, GRI
Realtor, Senior Advisor, RSA
www.facebook.com/robphylerealestate
Twitter @CBBrphyle
R, LO, WO?
Setbacks
Acreage
-a property diagram showing legal boudarys, easements, setbacks, and improvement locations. Submitted to the City along with Permit Application.
-The Architectural Control Committee is a group made up of a builder(s), and the developer(s) to control the improvement projects within a given development.
-The ACC reviews (approve or deny) home design to insure fit within the neighborhood guidelines: style/size/roof pitch/material,colors, etc.
Allowances: A built in dollar amount in the purchase agreement, usually an addendum, identifying items and amount of money included for you to choose and spend.

Carpet/flooring Non-Allowance Options
Plumbing fixtures
Lighting fixtures Exterior colors
Kitchen appliances Interior colors
Counter tops Interior wood stains
Low voltage Handle/knob styles
TV/phone jacks
Having your buddy run the electrical…
Typically never NEVER allowed
Insurance/Licensed/Bonded issues
Part time work outside normal construction hours
Scheduling issues with other subs
Warranty/Quality of work
Pre-Construction
Construction
Post Construction
Pre-Construction Activities
Plans and Specs: 1 week to 2 months
Purchase Agreement/pre-approval: 1 week
Survey/Permits: 1 month
Construction Activities
Foundation: 2 weeks
Rough Carpentry: 3-4 weeks
HVAC, plumbing/electrical rough-ins: 2-4 weeks
Exterior: 2-4 weeks
Drywall/Flooring/Paint: 3-4 weeks
Interior trim: 3-4 weeks
HVAC/Plumbing/Electrical trim: 2-4 weeks
Exterior: 1-2 weeks
Post Construction Activities
Building inspections
CO
Walk through
House cleaning
Closing/Move in
Housing Terminology to Sound like a Pro
Home Styles
Roofs
Basements
Windows
Rambler
Split
Multi-level
Two Story
Modified Two Story
Gable
Hip
12/13 Course
Poured vs Block
Floor Trusses
I-Beam vs Engineered
Slider
Casement
Double Hung
Transom
Awning
Next Steps:
Education
Designations
Resources
Education & Designations
Kaplan
-Houses: From the Ground Up
-Houses: Advanced Residential Construction
SellNewHomes.com
-Residential Construction Certified
-Certified New Home Specialist
**Both courses apply to CRS designation
Institute for Continuing Education Inc
-www.4icei.com
-About House Construction: 6ce
NAR
-Mastering the Art of Selling New Homes (CRS)
-Successful Buyer Representation in New-Home Sales
National Association of Home Builders
-Certified New Home Marketing Professional (CMP)
-Certified New Home Sales Professional (CSP)
Resources
Builders Association of the Twin Cities
www.batc.org
www.facebook.com/BuildersAssociationTC
National Association of Home Builders
www.nahb.org

Local Builders/In your office
Credentials:
-Represented 9 home builders last 10 years
-Former Director of Sales, New Construction Sales Company
-Former New Agent Sales Trainer, New Construction Sales
-CSP Designation in 2003 from the NAHB
-Represented many buyer side transactions in New Construction
-And finally, yes, I have been the buyer building a home
Plumbing
Floor Heat
Copper vs Flex
Radiant vs Warm Floors
Drain Tile
Int/Ext Drain/Sump
Radon Mitigation
Active
vs
Passive
Spancrete
Questions? Comments?
Abbey Decorating Center
Carpet
Vinyl
Wood
Laminates
Ceramic Tile
Bricks
Shingles
Counter Tops
Siding
www.abbeydecorating.com
Southern Lights
Outdoor lights
Indoor lights
Specialty lights
Pre-Solds
Pre-Solds: A Purchase Agreement to build a new home.
Listing Agent-Existing Homes
Buyers Agent-Existing Homes
REO Expert
Specialize in Short Sales
New Construction Builder Rep
Specialize in New Construction Sales
Commercial Properties
Investment Properties
Rental/Leasing Market
Vacation Properties
Senior Housing Expert
Condo Expert
Lakeshore Properties
Full transcript