Looking for a way to combat market lock-in effects? According to real estate expert Ricky Carruth, the key is new construction and builder incentives.
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Here are some innovative strategies to help you grow your real estate business to seven figures a year. Back in 2008, I used foreclosure to skyrocket my business to $1 million a year. Now, there is another great opportunity in today’s market: new construction.
Why new construction is a secret weapon
Let me explain why this is a great opportunity. We see builders offering huge incentives. There’s talk of rate buybacks, closing cost coverage, appliance packages, and even price reductions from the peak seen earlier this year.
But here’s the real killer. We don’t just sell new construction. You’re using it as your ticket to building a lasting relationship that will explode your business in the years to come.
Think about this. Currently, 88 percent of U.S. homeowners with a mortgage have an interest rate of less than 6 percent, 78 percent have an interest rate of less than 5 percent, and about 59 percent have an interest rate of 4 percent. If you can offer someone a brand new home at a purchase interest rate of 4.5 percent to 5.5 percent (compared to current market rates of over 7 percent), you’re not just selling, you’re that person’s hero. You can.
3 step strategy for success
Step 1: Know the product inside and out
First of all, you need to become an expert in new construction on the market. Your plan of action is:
Identify all new lots in your area. Connect with builders like DR Horton, KB Homes, Lennar and more. Get the inside scoop on all incentives, interest buyouts, and closing cost assistance. Request a subdivision showing available homes and lots. Build relationships with onsite agents. Tour all the model homes and get to know these communities like the back of your hand.
This investigation will take a full day. Trust me, it’s worth it. You want to be able to confidently discuss all aspects of these opportunities when speaking to potential clients.
Step 2: Target prospects strategically
So, who is your ideal prospect? Think broader than just the obvious candidates. Take a look:
Owners of smaller, older homes within a few miles of a new subdivision Properties in a similar price range (some may want something newer and older in the same price range) More expensive homes – newer Some people may want to downsize to real estate within 5 miles – 10 mile radius (don’t be too restrictive)
Remember: We’re not just looking for people who want new construction. You’re looking for an opportunity to start a conversation about real estate in general. The new construction angle is on the doorstep, but the real goal is to understand what these prospects want to do in real estate, whether it’s in the future or five years from now.
Step 3: Create perfect pitch
This is where the rubber meets the road. Your approach might sound like this:
“Hey Mr. Johnson, this is [Your Name] and [Your Company]. How are you today? “
Let them answer.
“Great! Me too… I’m having fun today. Isn’t it beautiful?”
Let them reply and go with the flow here. after that…
“Well, I don’t want to take up too much of your time, but I noticed that we have a house in Grand Oak. There’s a brand new house just down the road that you might be interested in. And now we have incredible incentives. Want to hear more?”
If they are interested, great! If not, that’s okay. Follow-up is very important.
“Do you have an agent that you often work with when buying or selling?” “What are your real estate plans for the next few years?” “If you find a good property, would you be interested in an investment property?”
The key is to keep the conversation flowing naturally and show genuine interest in the other person’s needs. Remember, you’re not trying to sell, you’re trying to make friends who own real estate.
A long battle that pays off
What makes this strategy so powerful is that it’s not about selling right away. It’s about planting the seeds that will grow your business exponentially over the next few years. Every conversation is an opportunity to add someone to your database, build a relationship, and become your go-to real estate expert.
My goal was to make 5 new friends every day who owned real estate. I added them to my weekly email list, kept in touch, and watched my business explode over the years. And guess what? During that time, I also made a lot of money.
The truth is, there is nothing standing between you and a million dollar real estate business other than thousands of one-on-one conversations with people in your market. New construction is the perfect excuse to have that conversation right now.
So what are you waiting for? Get out there, identify new construction opportunities, make calls, and start building relationships that will take your business to the next level. Remember, this market won’t last forever. Now is the time to take advantage of these builder incentives.
Your future self will be grateful for the seeds you sow today. Get out there now and make it happen.
Ricky Carruth is a coach, speaker, and real estate expert. Connect with Ricky on Linkedin and YouTube.
