Rising costs and changing markets are squeezing builder profits

Realtors need to provide accurate market updates and lower commissions

Active Vienna new home inventory

  • There are 42 active new home listings in Vienna
  • Average List price: $1.606M
  • Average above grade SQ FT: 4145
  • Average days on market: 196

Vienna new homes UNDER CONTRACT

  • 2 homes went under contract in the last 30 days
  • There are 18 total new homes under contract
  • 1/2 of the homes under contract do not have finished basements
  • The average list price of homes under contract: $1.336M
  • The average above grade SQ FT: 3927
  • Average days on market: 86

Vienna new homes Sold in last 120 days

  • 20 sales
  • Average size: 4365 sq ft AG
  • Average sales price: $1.57M
  • Projected sales price based on CST new home model: $1.575M
  • 80% had finished basements
  • Average days on market: 165

Vienna New Home Market Summary

  • Inventory is very high
  • Contracts are few
  • Buyers are buying lower priced homes. 77% of the homes under contract were listed under $1.4M
  • More unfinished basements on homes under contract. This is a switch from the recent sales
  • On average, homes listed in Marshall RD and Cunningham school districts are listed $100k over CST projected value and at this time, homes are selling under projections.

The Good News:

  • The resale market for homes under $1M is VERY strong
  • 50% of the homes under $1M are under contract
  • The internet allows builders to target buyers and save builders Realtor fees

Speaking of Lowering Commissions

The Casey Samson Team offers builders a 3.5% solution

Here’s how it works:

2% Total commission if sold during pre launch period.

The time between plan approval and kitchen installation

3.5% Total commission if the home is placed into the MRIS

After kitchen installation

Pre launch marketing includes a website for each home similar to this showcase

Inviting foyer, formal living room, dining room, butler's pantry and professional home office

Services provided during pre launch

Each home has a Website that includes:

  • Unique URL:www.address.com
  • Renderings
  • Floor plans
  • Sample pictures of other builder projects
  • Pictures of like kind properties in the neighborhood
  • Standard features list
  • Upgrades
  • Size
  • School information
  • Builder info

CST Sample sites

Plats and floor plans can be added

We have a Powerful Social Media platform that targets buyers and drives them to the property website

Ads are created for each property and linked to their websites. Geofencing allows us to target new home buyers on Facebook, Twitter and Instagram.

Boosted ads to target markets generate 20 times the traffic as organic ads.

We show off builder produces

Yard signs and directional signs attract drive by buyers

Fliers in the sign box keep everyone informed. The goal is to sell and deliver the home when the OP is issued

Top producers assigned to each home provide:

  • A professional showing the property
  • Open houses
  • Contract negotiating
  • Inspection releases
  • Feedback from potential buyers
  • Weekly reports

School info is critical and needs to be in all pre launch marketing material

Top Rated Fairfax County Schools

Waples Mill Elementary | Franklin Middle School | Oakton High School

Once the kitchen is complete, The home is launched on the MRIS system

Commissions are adjust to 3.5% and new pictures, brochures and websites are completed.

1% listing commission to The Casey Samson Team.

2.5% offered to selling agents.

Builders can offer more or less to selling agents. I believe the future is 2% to selling agents, bringing the total commission to 3%. It is the builders choice.

Why 2.5% works for selling agents:

  • New homes are larger and easier to sell
  • The buyers have unlimited access to homes on the internet
  • Buyer make buying decisions, not Realtors
  • The internet has driven down commissions in most industries
  • 59% of the homes in Vienna offer 2.5% selling commission
  • Homes offering 2.5% sell faster than homes offering 3%
  • CST offers 2.5% on all listings and our track record in the best in the area
  • All real estate companies are offering 2.5% on a portion of their listing inventory
  • The oldest and largest company in the area offers less than 3% on 51% of their Vienna listings

Why 1% works for CST

  • High average listing is $1.5M
  • We only take good listings priced correctly
  • We sell what we list
  • We know what the proper price is
  • We do not split commissions with our brokers so we can pass the savings to our clients
  • Our systems are very efficient
  • A local top producer is assigned to every project so homes have the attention to detail they deserve
  • Our social media platform drives traffic to our homes so we have the opportunity to sell the home our selves
  • Buyers of new homes have homes to sell. We sell resales
  • Lower commission cost allow builders to price homes correctly and generate sales

How this system helps builders

  • Cuts down commission expense
  • Provide market updates and pricing input so builders can make reliable projections
  • Protects builders from buyer calls
  • No meeting buyers unless screened by experienced Realtor
  • No direct negotiations with buyer. Sellers should never do their own negotiating
  • Marketing is done using state of the art tools
  • Builders can build while Realtors can market and sell
  • Builders have top shelf representation
  • Most of our building lots are sold without being placed on the MRIS

Results count

In May of 2018, 5 of the top 7 listings in Vienna were sold by the CST

2017 Volume was $100M

85% of our sales happen within 30 days

11 of our 2018 top listings sold for an average of $1.5M in an average of 24 days

For 2%-3.5% Commission, the builders get:

  • Accurate Pricing
  • Market updates
  • Professional representation in the neighborhood and online
  • State of the art marketing
  • Invaluable feedback
  • Brochures
  • Expert negotiator on contracts and inspection releases
  • Maximum exposure for properties

Follow us on Social Media

Facebook | Instagram | YouTube | Twitter | Pinterest

Contact Casey at 703-508-2535

Created By
The Casey Samson Team

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