Ask The Founder
For years older homes have been, and continue to be, torn down and replaced with new construction. So, what is the future for teardowns?
Well, it looks like the redevelopment may just be getting started. "There are about 61.2 million people in the U.S. aged 65 or older, or 18% of the total population, representing more than one-third of all homes owned nationwide, according to a report from the National Association of Home Builders citing Census data. Collectively, these households are sitting on an estimated $13.8 trillion in housing value." Logic alone tells us that many of those upcoming for-sale homes are dated and the houses themselves will have depreciated to the value of their land.
Do certain sellers in your market wonder if the value of their real estate is simply in the land? If that’s true, do they call you to help answer that question?
“teardowns” can be subjective – asking that question becomes your lead gen mantra. Remember what happened when “what’s your home worth” went viral with consumers? The same thing is happening now from buyers and owners of older homes, yet no portal or broker is targeting the unique property type. That’s an opportunity for you.
Do homeowners currently view you as the local expert for everything new construction?
Having something different and specific is attractive, it gives customers confidence they’re reaching out to the local expert.
Do you currently have a unique marketing strategy to do more new construction business in your market?
Finding the right property is everything. Without it nothing happens.
If you’re an agent, does your brokerage have a proprietary network for “off” market listings? If so, does it include the functionality and ability to collect buyers and attract sellers of new construction from the public?
Our “system” is compatible with or without the MLS. Using the teardowns.com platform is up to our subscribers and their clients – we just want to help get your phone to ring or fill up your inbox with consumer inquiry.
Is the teardown-to-new construction transaction the most lucrative and easy deal in the local real estate business? Are you happy with your results from the ongoing trend?
Having done this business ourselves as brokers, we know what’s involved and what’s not. These deals are rather simple with little hassle and less concern over things like inspection and financing. Most buyers are “as-is” cash buyers. “Just send me the survey”.
The NAHB says that 42.6% of new construction is the result of teardowns or infill vacant lots. Are you doing that percentage of the business in your farm?
Some markets don’t have any available empty lots or very few. Markets in, and around larger cities and their suburban neighbors are mostly built up especially in well populated low-end and upper-end luxury areas.
As brokers, can you increase your commission revenue while at the same time lower the transaction cost for your clients?
Since our subscribers can consummate satisfactory deals for seller clients through direct-connection to buyers, they’re able to charge higher than normal fees, as commissioned buyer’s agents are rarely needed to satisfy a client's sale – but again, the choice is up to you and your clients.
Most sellers of teardowns are older or seniors, do you have a strategy to target this demographic?
35% of single family homes were built before 1969 while at the same time buyers prefer newer housing. 61% of buyers prefer newer homes.
