As inventory climbs and buyers continue to be skittish, new-home sales professionals are having to tap into tried-and-true old-fashioned sales techniques. But traffic is slow.
To find out what it takes to sell a new home in this rocky market, Kevin Oakley, managing partner at Do You Convert, and Roland Nairnsey, founder of New Homes Sales Plus, share their tips below.
Drive in traffic with realtors, referrals, and events.
“With builder-generated traffic down, today’s salesperson now more than ever has to be responsible for driving in new qualified traffic. Main targets include:
- Realtors: Implement a systematic outreach program, with the goal of doing at least one broker presentation a month at your own model or sales center. Also, include a targeted individual targeted outreach to top agents in your market. Make sure you follow up on social media and thank realtors to create buzz.
- Referrals: Research shows that some of our best qualified clients come from referrals, as the potential client is already preconditioned to think positively of you and what you build. Make sure the last page of every sales agreement is a blank referral form and with EVERY sale, the salesperson asks for three names to reach out to and invite out to view their brand-new homes.
- Community events and education: Host an event in your community to get neighbors and present homebuyers together and ask them to pick their neighbors and bring a friend. Educational events are also an excellent way to drive qualified buyers. Make sure all of these events are posted way in advance on your website to create consistency and maximize turnout.” –Nairnsey
Courtesy Kevin Oakley
Kevin Oakley
A lower starting price point drives traffic increases.
“Nothing generates more new conversations – online or onsite – than a lower entry price point. Discounts and incentives can nudge folks already in your CRM, but they don’t generate new traffic the way a lower starting price will. And no, you don’t have to cut prices – introduce a smaller floor plan, adjust included features, or find another creative way to bring that entry point down. Remember: buyers search on NewHomeSource, Zillow, and other listing platforms by price range, not by “incentive.” Realtors do the same on the MLS.” –Oakley
Lead and close on the first visit.
“Buyers are confused and have more choices than ever, so we need to follow the sales process and narrow down and sit down to recap and close on the first visit. Be prepared to manage common objections or as I like to say their ‘Big Buts’ and then close again. If the sale is not forthcoming the reflexive, you need to make the appointment with a purpose date and time. If you don’t adhere to the best sales practices, there are too many other shiny objects and sales offices becoming your clients and trying to lure them into their storefront with their massive discounts. Stay focused and close assertively, always stating the benefits for the buyer, at the top of your mind.” –Nairnsey
Courtesy Roland Nairnsey
Roland Nairnsey
Persistence kills resistance.
“Leads in your CRM that are 1,200 or even 1,400 days old (that’s FOUR years!) are still turning into sales. We see it from our 100 builders across the country each month. When I started in 2003, people moved every six to seven years. Today it’s closer to 12. That means leads remain viable at least twice as long as most experienced sales teams are used to. Personalized, consistent follow-up isn’t optional—it’s critical.” –Oakley
Know thy numbers.
“With buyer confusion over the rates, many buyers care much more about their potential monthly investment, than they do the total investment. Think about the last time you bought or leased a car, it was probably the payment that drove your decision, excuse the pun.
Some clients aren’t ready to talk to our lender yet but need guidance as to what their approximate monthly investment will be. I created a simple app for this if anyone would like to email me, I would be happy to share it.” –Nairnsey
Don’t overspend on advertising.
“Half of builders underspend, while the other half overspend. If you’re on the overspend side, there’s room to cut back without losing ground. A quick rule of thumb: if your unique website visitor count has doubled or tripled compared to the same time period in 2021 or 2022, but your appointments and sales haven’t improved, you’re buying attention you don’t need. In most markets, builders don’t have an awareness or attention problem; they have a conversion problem. More money on ads won’t fix that, and you could be using those resources to help improve the value proposition in the community in another way that your existing prospects will respond to.” –Oakley
