Capitalize on infill development to fill your pipeline
By Dennis Walsh, Founder, Certified New Home Specialist
There are a number of new-home sales drivers presenting tremendous opportunities for smart brokers and agents, including builders and developers swinging into action, increased household formation, and pent-up demand for homeownership. Certified New Home Specialists (CNHS) are uniquely qualified to take full advantage of these drivers, as well as an emerging trend that offers additional opportunities: infill development and construction.
Infill development describes situations where we’re tearing down older buildings on a property in an established neighborhood – older homes, apartments, hotels, commercial buildings, etc. – and rebuilding something new. What’s most exciting about this opportunity is that with the right training and strategies, you can proactively create your own new listing inventory and build a pipeline of business for long-term success.
If you want to seize opportunities in infill development, here are five things you should know about it:
- It has many forms
Infill development can mean replacing older construction with larger, more luxurious single-family homes, new rental units or condos. On larger parcels, a mixed-use development combining residential options with retail or light commercial uses might bring great value to the community. More and more we also find the development of various types of live/work style housing to meet the needs of entrepreneurs, small businesses and home-based workers.
- It’s a growing segment
With the aging of our housing stock, higher land costs and the growing desire of more people to move closer to urban centers, both large and small, infill has grown to more than 20 percent of all new construction nationwide. In some larger urban centers, we find 50 percent or more of the total new construction activity is infill.
- It’s driven by communities
City planners, zoning departments and others look for ways to bring new life, more jobs and increased tax revenues to support city services. Brokers and agents working closely with their community planners can play a role in bringing new inventory, revitalizing, and shaping the future of the housing markets where they live and work.
- Brokers and agents can facilitate it
Infill Development presents unique opportunities for brokers and agents to bring together the key players, including builders, investors, land owners and designers to bring these new projects to life. Certified New Home Specialist training is helping more brokers and agents successfully take advantage of this business – and learn the key concepts of ‘packaging’ these deals to the benefit of all involved.
- There’s big demand for Certified New Home Specialists
National studies continue to establish that 55% or more of active home shoppers prefer a brand-new home and want to include both new and used homes in their search. As a result, it’s now essential that all brokerages and their agents are trained in new home sales to professionally meet the needs of this majority of today’s homebuyers. Your expertise as a CNHS gives you a powerful competitive edge.