Unlock new opportunities in a low inventory market when you dig into the new construction segment of the residential market.
Today’s real estate landscape can make buyers feel like they’re about to climb Mt. Everest. Jessica Lautz, NAR’s deputy chief economist, noted one of the key factors is “the lack of housing inventory is impacting Realtors’ ability to find buyers a home.” With current inventory shortages, new construction is emerging as an attractive alternative for homebuyers.
Having a solid understanding of the construction process can greatly enhance your ability to serve clients in today’s challenging market. This series will equip you with the knowledge, strategies, and tips you need to capitalize on the opportunities presented by new construction, ultimately helping to grow your business.
In this article, we will provide you with an overview of the construction process, including the different stages and timelines involved. By gaining this foundational knowledge, you can better navigate the world of new construction and offer valuable insights to your clients.
During this stage, several important tasks take place, including:
- Researching local building regulations and zoning requirements: Familiarize yourself with the rules and regulations governing construction in your area.
- Understanding the land acquisition process: Gain insights into how builders and developers acquire land for their projects.
- Assessing market demand and feasibility: Evaluate the viability of a new construction project by analyzing market trends and demand in the target area.
Key takeaway: Conduct thorough research on local regulations, land acquisition, and market demand to identify potential new construction opportunities for your clients.
Design and planning phase
This phase involves developing detailed plans and obtaining necessary permits. Consider the following:
- Collaborating with architects and builders: Establish relationships with professionals in the design and planning stages to better understand the process and provide informed guidance to clients.
- Reviewing architectural plans: Familiarize yourself with architectural drawings and blueprints to help clients visualize the end result.
- Ensuring compliance with building codes: Stay up to date with local building codes and permit requirements to ensure projects proceed smoothly.
Key takeaway: Building relationships with architects and builders and staying informed about building codes are essential for guiding clients through the design and planning phase.
This is the stage where the physical construction of the project takes place. Consider the following aspects:
- Regular site visits: Schedule visits to the construction site to monitor progress, address concerns, and provide updates to clients.
- Understanding construction timelines: Familiarize yourself with the estimated duration of each stage of construction to manage client expectations effectively.
- Coordinating with builders and subcontractors: Establish effective communication channels with builders and subcontractors to ensure seamless collaboration and timely completion of the project.
Key Takeaway: Actively engage in site visits, understand construction timelines, and maintain strong communication with builders and subcontractors to keep clients informed and projects on track.
Finalization and Completion Phase
As the project nears completion, several crucial tasks should be addressed:
- Conducting final walkthroughs: Accompany clients on thorough walkthroughs to identify any remaining issues or necessary adjustments.
- Facilitating inspections and certifications: Assist clients in scheduling necessary inspections, such as those related to structural integrity or safety compliance.
- Explaining warranties and maintenance requirements: Educate clients on warranties provided by the builder and offer guidance on ongoing maintenance to ensure their investment is protected.
Key Takeaway: Providing support during final walkthroughs, facilitating inspections, and explaining warranties and maintenance requirements are crucial steps to ensure client satisfaction and a successful project completion.
Amid low inventory, expertise in new construction offers an alternative path to homeownership. By staying informed, building relationships, and actively engaging, you become the go-to resource, guiding clients, enabling them to achieve homeownership goals despite inventory challenges.
The next article in this series will cover building relationships with builders and developers: How to establish connections, the importance of networking, showcasing expertise and fostering mutually beneficial relationships.