CRD, NAR education for real estate agents
Here we are, back with Trenesha Harrison, for Episode 2 on New Construction. In our first episode, we discussed new construction from the perspective of the on-site agent, which is how Trenesha started in real estate. In this episode, we’ll discuss how to help you be more prepared as a buyers’ agent, bringing your buyer to the new home community. The two episodes go together, so we suggest you listen to both.
Trenesha lives in Oklahoma City, Oklahoma, and she loves new construction because it’s always changing; it’s always different, and there’s so much that we can learn from how a home is built from the inside out.
[2:03] Seeing new construction go up is awesome but it might be intimidating for buyers’ agents who may not understand the foundation, the framing, or the roofing. Trenesha has ideas about getting familiar with new construction. On-site agents and builders can train buyers’ agents about new construction.
[2:52] Trenesha has had builders coordinate presentations for her team. Trenesha also does frame training with her team. It’s hard for clients to envision what a house looks like when they’re walking through just a bunch of sticks. It’s hard to put the walls up mentally.
[3:12] Being able as an agent to look at a floor plan or blueprint and understand what you’re seeing will help you mentally put those walls up, not just for yourself but also for your client, so you can identify rooms and locations of appliances for them. You have to know what you’re looking at.
[4:58] To learn floor plans, you have to look at the floor plans of a completed home and an incomplete home. Look at the floor plan as you walk through the completed model home and the framed home to see how the path leads you through the homes.
[5:31] Learn the construction components, such as the plumbing, gas, and electrical wiring, and framing for a door versus a window. This will help you walk this frame with your clients and understand how to explain it. Photos of the framing can also show the buyer possible structural changes they could make.
[7:28] Trenesha has done “X-ray” photos of framing. She also finds it helpful to walk through the house during framing. Understanding what your client is building, you can see anything that may not be right in the framing such as a missing window the client requested above the shower. Address it with the builder.
[8:35] If your client finds something in the framing that doesn’t seem right to them, remain calm and say, let’s talk to the builder, so we can get this corrected as quickly as possible. You want to help the client relax a little built. Building a home is very stressful.
[9:12] If you notice something wrong in the framing, address it with the builder as the buyers’ agent and let the client know you’ve covered it with the builder. You want to make sure your buyer understands you’re working as a team with them and the builder.
[9:54] Keeping your eyes on the job site for your client will help this process go a lot smoother so you don’t get to the end and find structural mistakes that cannot be changed.
[12:53] Within the Buyer-Broker Agreement, Trenesha writes verbiage that covers her exit fee compensation expectations for moving into a contract without her knowledge or participation. This lets buyers know their choices and encourages them to involve their buyers’ agent in any contract.
[13:37] The client must understand that the builder is for the builder, but the buyers’ agent is for the client. Trenesha’s company has these conversations and verbiage standards with their clients from the top. Trenesha trains the agents in her brokerage on new construction. Not being trained well is a liability!
[14:24] In consultations, Trenesha talks to clients about new construction as an option. Some people think that’s for buyers with a lot of money. They don’t realize there are price points that fit everybody. Anybody can own a new construction home during this time. This leads to a discussion on flexibility.
[17:08] Trenesha tells her clients they’re not competing the same way in a new construction market as they are in a resale market, especially not in a fast market. Planning the timing of a move takes some of the ambiguity out of the process.
[18:19] Trenesha mentions some pros and cons of working with a builder’s preferred lender. Compare the closing costs and interest rates between the client’s lender and the builder’s lender. The builder may have a preferred lender because relationships matter.
[20:53] Builders often carry contracts laying out details the real estate commission contract for new construction doesn’t cover, like what is expected at different phases of construction and how much money to put down in addition to your earnest deposit, especially for upgrades and improvements.
[21:29] The builder’s contract may cover their specific warranty and your buyers’ agents’ compensation. Read carefully. The sales rep is knowledgeable about those contracts, so sit down with the on-site agent and your client and ask the agent to go over it with you before your client signs it.
[22:28] In 2020 some builders had clauses that they could change the price, based on the price of lumber. Trenesha has not seen that in a long time. Most of the time, she sees verbiage about appraisal shortages. The buyer has to make up the difference. The builder will not drop the price. Don’t overbuild your home!
[23:17] Monica saw a price-change clause in a contract last year. Be alert for things that may not need to be in the contract.
[23:36] Spec builders build homes without a specific buyer. Semi-custom builders allow you to make some structural changes. They may be already built into the models based on the floorplan you choose. Completely custom builders do whatever you can afford to do.
[24:33] Builders will sometimes let you move walls a bit but not too much. You may be able to pull a wall out two feet to make this side of the house bigger. You could choose a separate tub and shower or just a big shower. You may want sliding glass doors onto a back patio instead of a single door.
[25:08] Design changes include your floor tile choice, wood floors, metal choice for your fixtures, paint colors, brick color, color of fascia or soffit, front door color, and window frame color. It can be overwhelming for some home buyers. There are so many decisions.
[26:06] Your client has to decide what their negotiables are and what they have to have in their home.
[26:47] As a buyers’ agent, know if this is a builder that starts at a low base level or a builder that has a higher base level. Knowing that is a way to bring value to your clients. There are so many nuances that come with extra money.
[27:36] What does the client want and how much are they willing to pay for it? Most structural decisions need to be made at the beginning of contract time. There is a little leeway with some decisions that can be made later, such as how much concrete to pour for a patio.
[28:27] Design selections involve your client’s preferences. Ask them how long they plan to stay in the house if they start choosing extreme colors. Are they OK with repainting when they sell” Cabinets and flooring set the tone of the home. Also, help them watch their budget according to their goals.
[29:49] Builders that Trenesha worked with did a frame walk-through and a dry-wall walk-through. At that stage, there is still time to fix issues with plumbing and electrical placement.
[30:34] Before the final walk-through, there are third-party inspections. In the final walk-through, the builder shows the homeowner the water, gas, and electricity shutoffs, alarm system, sprinkler system, and hot water system.
[31:17] Before a walk-through, the buyers’ agent should discuss with the on-site agent or builder the stage they are in. Will there be time to mark anything they missed? Will the inspection report be addressed? Then you tell your client what to expect in the walk-through. A final walk-through comes before closing.
[32:54] Sometimes buyers don’t feel they have the power to insist on the builder making corrections. Be sensitive to the situation. It is the buyer’s decision to make but you may have to advocate for them. Sometimes the builder pushes back, but a crooked sink counter, for example, has to be fixed.
[34:52] Small or medium items can go on a warranty list to be fixed within two weeks after closing. The buyers’ agent needs to follow up on these items. Homes are rarely perfect by closing.
[35:23] Trenesha’s final advice: Do not be afraid of new construction. There is a lot to add to your expertise toolbox about new construction. Don’t be afraid to search for things that will make you a better real estate agent and buyers’ agent and will help you understand what the process looks like to the buyer.
[35:52] Thanks so much to Trenesha Harrison! I truly believe that our listeners are way more prepared to help buyers purchase new construction homes after listening to the wisdom of Trenesha Harrison. I got some new tips, myself! I am so grateful she could take some time with us!
[36:10] These days, when we have limited inventory options, new construction is a great option at all price points. Education will help you feel more prepared to explore all the available housing opportunities in your area.
[36:25] An ABR elective course: “New Home Construction and Buyer Representation: Professionals, Product, Process” is a course that will give you more detailed information if you want to help yourself feel even more confident working with buyers and builders.
[36:42] You can access the class online or find a live class by searching on Learning.REALTOR. You can take it as an elective to the ABR or by itself. There are lots of opportunities to take the Accredited Buyer Representative, also available at Learning.REALTOR.
[37:01] Thanks so much for joining us! We would like to hear some feedback from you, our listeners about this two-episodes process we’re testing here. Do you like the monthly topic separated into two episodes? Or, do you prefer one longer episode?
[37:17] The email address to contact us is in the show notes and you can let us know which style you prefer. I’m Monica Neubauer for the Center for REALTOR® Development.
[37:26] You got some great suggestions from Trenesah, so I know you are more prepared to go out there and sell some new construction!
Tweetables:
“I do stuff like that for my team, where we do a frame training because it’s hard for clients to envision what a house looks like when they’re walking through just a bunch of sticks. It’s hard for them to put those walls up mentally.” — Trenesha Harrison
“You want to be the calm person in this. … Help the client relax a little because building a home is very stressful. If you notice something wrong, let the builder know as the buyer’s agent but also talk to your client and tell them you’ve addressed it.” — Trenesha Harrison
“Keeping your eyes on the job site for your client is going to help this process go a lot smoother so you don’t get to the end and realize, ‘Oh, this was supposed to be a bedroom, not an office. This was supposed to have a closet.’” — Trenesha Harrison
Guest Links: Trenesha Harrisoniloverealtyok.com
NAR Resource Links ABR® Accredited Buyer’s Representative
Additional Links:
Learning.REALTOR — for NAR Online Education
Training4RE.com — List of Classroom Courses from NAR and its affiliates
CRD.REALTOR — List of all courses offered
New Home Construction and Buyer Representation: Professionals, Product, Process
Host Information:
Monica Neubauer
Speaker/Podcaster/REALTOR®
Monica’s Facebook Page: Facebook.com/Monica.Neubauer
Instagram: Instagram.com/MonicaNeubauerSpeaks
Guest Bio
Trenesha Harrison is an Oklahoma native. She specializes in new construction, and first-time home buyers, is a listing specialist, and is investor-friendly. She began her career in new construction and has expertise on many top home builders in Oklahoma and the Dallas market. While being well-versed in new construction, her transition into general real estate was natural and mutual. She didn’t just choose real estate, real estate also chose her. “I have learned there is so much more to finding a home for my clients than checking off boxes.” Trenesha understands the importance of not just listening to her clients, but actually hearing them. Selling and purchasing a home is more than a logical or practical decision, there is an emotional component. Understanding someone’s emotional motivation is sometimes more important than the home itself. “As a representative for buyers and sellers, you will not be disappointed with the level of care and attention I put into helping with your home search and getting your listing noticed and sold for top dollar.”
“As a seasoned real estate professional, I understand that buying or selling a home is more than just a transaction: it’s a life-changing experience. That’s why I am dedicated to providing exceptional, personalized service for all of my clients. I take great pride in the relationships I build and always work relentlessly on the client’s behalf to help them achieve their real estate goals. My philosophy is simple: Clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. I believe that if you’re not left with an amazing experience, I haven’t done my job. I don’t measure success through achievements or awards but through the satisfaction of my clients.”