How Can Realtors Compete When a New Builder Comes and Drops Neighborhood Prices

Melissa Zimmerman's picture
Home builders in a neighborhood

We have all heard the story of David and Goliath. A small man or boy up against a large beast of a giant. It seems an impossible task to fight. David stakes his ground, clenches his fists and tries to bring the giant to his knees. In real estate, we have our version of these kinds of fights an established neighborhood that gets a new builder to come in after years of holding their values, now sees that home value fall to the newer, cheaper built homes in the neighborhood.

So when you get a listing in that older established neighborhood, how do you compete? Can you compete against a big builder that comes into the neighborhood and drops the prices by building cheaper houses?

There are many components to look at when deciding to tackle the giant builder at hand. Does your home have attributes the new builder doesn't? Is is a buyers or sellers market? What incentives are the builders offering that you may want to offer as well? How does the sellers home look compared to the new homes, and what can you offer to level the playing field?

You can attack the new build head on in the listing with something like "Why wait to build...", or point out lot all the great things about the established neighborhood, and be prepared to know new build competitor prices. I would never say walk away from the giant, but prepare yourself and the seller for battle because giants don't fall easy.

Melissa Zimmerman
Real Estate Agent / Huntersville, NC
Berkshire Hathaway HomeServices Carolinas Realty
Mobile 440-503-3580

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