The Florida construction market is booming. In 2022, Florida authorized about 212,000 new single-family housing units, the second most in the nation behind Texas. The construction rate was 21.1 per 1,000 existing homes—almost double the national rate of 11.7. This is good news if you are a real estate agent for new construction.
Do you want to get into this niche market? Here’s what you need to know about how to sell new construction homes in FL. We’ll guide you on how to be a builder’s real estate agent and answer the question, “Do you need a real estate license to sell new homes in Florida?”
Key Takeaways
- Florida’s construction market is thriving. This surge in new construction offers significant opportunities for real estate agents.
- In Florida, the market includes custom homes tailored to buyers’ specifications, spec homes built without specific buyers in mind, and tract homes mass-produced in large developments. Each type presents unique selling points and opportunities for agents.
- To enter the new construction niche, real estate agents should obtain their Florida real estate license, build strong relationships with reputable builders, and gain specialized knowledge through continuing education and certifications.
- Selling new construction homes requires leveraging high-quality visuals, utilizing digital marketing, hosting open houses and tours, creating comprehensive marketing materials, and highlighting new homes’ unique features and benefits. Engaging with clients through testimonials and reviews also builds credibility and attracts new buyers.
Understanding the New Construction Market in Florida
The increased population is one reason for the uptick in Florida’s new construction housing market. According to New Home Source, over 1,300 new home communities exist in Florida. In particular, central Florida’s new construction market is thriving, with Orlando home to nearly 300 new communities. This creates a fertile ground for real estate agents to tap into a growing market.
Types of new construction homes
There are three main types of new construction: custom homes, spec homes, and tract homes.
- Custom homes are tailored to the buyer’s specifications. They allow for personalized design.
- Spec homes are built by developers without a specific buyer in mind. They are attractive to buyers because they are sometimes ready for immediate sale.
- Tract homes are mass-produced by builders in large developments and typically offer a range of models and floor plans.
All three new construction options are available in the Florida market.
Market demand and potential opportunities for Florida real estate agents
The high rate of new construction in Florida indicates a strong market demand, providing real estate agents with abundant opportunities. By staying informed about the latest trends and developing relationships with builders in their area, agents can better meet their clients’ needs and capitalize on opportunities in the new construction market.
But how do you enter the market? The next section highlights strategies for entering the niche and options available to real estate agents.
How to Become a Real Estate Agent for New Construction
There are two main options for becoming a real estate agent focusing on new construction. You can focus on this niche as a buyer’s agent and assist clients in finding, purchasing, and closing on newly built properties. This may include helping the buyer navigate new developments, choosing finishes, understanding construction timelines, and negotiating with builders.
However, some agents choose to become builder’s agents, which means they work with builders and developers to market and sell properties that are still under construction. A builder’s agent shows model homes, site plans, and blueprints to help buyers visualize their future homes. Additional duties include arranging financing, managing client expectations about turnaround times, and promoting the community.
It’s important to note that builder’s agents often work for a reduced compensation percentage since there is (or should be) a steady stream of business. Additionally, you may have to sign a non-compete agreement stating that you will only work with one builder.
Do you need a real estate license to sell new homes in Florida?
Yes, you need a license to work with clients who wish to buy or sell a home in Florida.
Here’s how to become a real estate agent in the new construction niche:
Step 1: Become a licensed real estate agent in Florida
Earning your Florida real estate license is the first step to becoming a real estate agent for new construction. Gold Coast Schools can help you with this process, which involves taking pre-licensing courses, passing an exam and background check, and applying for a license.
You can get your How to Get a Real Estate License in Florida | Gold Coast Schools
Related Article: How Soon Can You Get Your Real Estate License in Florida?
Step 2: Build relationships with builders
Establishing strong relationships with builders is essential for succeeding in the new construction market. Here are some tips for making these connections.
- Identify reputable builders: Research and approach builders known for quality and reliability.
- Establish communication channels: Maintain open lines of communication to stay updated on new developments and opportunities. Regular communication helps build trust and ensures you are always informed about the latest projects and market trends.
- Negotiate agreements: Work towards mutually beneficial agreements that enhance your ability to sell new homes effectively. Successful negotiations can lead to exclusive deals, better commission structures, and long-term partnerships.
Step 3: Learn how to sell new construction homes in Florida
Have you decided to focus on the new construction niche? Here are some tips on preparing to work in this market.
- Find a mentor: Learn tips for selling new construction from an experienced mentor in your brokerage.
- Enroll in continuing education courses: Learn about green building techniques and hurricane-resistant homes so you are better informed about the features a new home offers.
- Obtain certifications: The National Association of Independent Builders and Real Estate Services (NAIBRS) offers New Construction Specialist (NCS) certification training for real estate professionals.
- Learn to navigate the sales process: Understand the nuances of selling new construction, from initial inquiries to closing the sale.
How to Sell New Construction Homes
Are you considering working as a builder’s agent? If so, you must learn marketing strategies specific to new construction. Here’s some guidance on how to sell new construction homes.
1. Utilize high-quality visuals.
Hire professional photographers to capture high-quality images of model homes, architectural details, and neighborhood amenities. Create immersive 3D virtual tours that allow potential buyers to explore the home from the comfort of their own space. Finally, drones can capture aerial views of the construction site, surrounding area, and community amenities.
2. Utilize digital marketing.
Develop a dedicated website or landing page for the new construction project with detailed information, photos, floor plans, and virtual tours. Optimize your website and content for search engines to attract organic traffic from potential buyers searching for new homes in Florida. Use social media platforms like Instagram, Facebook, and Pinterest to showcase high-quality images, updates, and promotions. Use targeted ads to reach potential buyers in specific demographics.
3. Host open houses and tours.
Organize regular tours of model homes to give potential buyers a tangible experience of what their future home could look like. Host live virtual tours using Zoom or Facebook Live to reach out-of-town buyers or those preferring a remote viewing experience. Plan community events such as block parties or cookouts in the new development to attract potential buyers and create a sense of community.
4. Create comprehensive marketing materials.
Develop professionally designed brochures and flyers highlighting key features, floor plans, and customization options. Use email newsletters to keep potential buyers informed about construction progress, upcoming events, and special promotions. Send postcards or flyers to targeted neighborhoods and demographics to raise awareness about the new construction project.
5. Highlight the unique features and benefits of purchasing a new home.
Emphasize the ability for buyers to customize their homes with different finishes, layouts, and upgrades. Showcase modern amenities, energy efficiency, and customization options to prospective buyers. Highlight energy-efficient appliances, smart home technology, and sustainable building practices.
6. Leverage testimonials and reviews.
Collect and showcase testimonials from satisfied buyers who have purchased new construction homes. Encourage happy clients to leave positive reviews on platforms like Google, Yelp, and Zillow to build your reputation and attract new clients.
Are you excited about working in Florida’s new construction real estate industry? The first step is to learn how to get your real estate license in Florida. You can get started today by signing up for your pre-licensing courses with Gold Coast Schools. Gold Coast Schools has decades of experience in the real estate education industry. Contact an enrollment specialist today to learn more about our program.
Source:
Paprocki, Justin. “Florida’s New Home Construction Continues to Surge.” Gulfshore Business, November 27, 2023. https://www.gulfshorebusiness.com/floridas-new-home-construction-continues-to-surge/#:~:text=About%20212%2C000%20new%20single-family%20housing%20units%20were%20authorized,%2821.1%29%20is%20nearly%20double%20the%20national%20rate%20%2811.7%29.