Who says the Reno market has nothing to offer new home builders.  Speaking recently with Susie Peak, three-time recipient of the BANN-ER Award for Outstanding Real Estate Sales Person (2007, 2008, and 2009), nothing could be farther from the truth!  Currently the lead sales agent at Taylor Morrison’s “Estrella” new home community, located in Wingfield Springs, Susie has successfully weathered some of the most challenging and difficult years in real estate history due to the economic downturn that has adversely affected thousands in Northern Nevada.
   During her interview, conducted in early February, Susie attributed her successes to the team that gets local homebuyers who are seeking the American Dream into their new Estrella home: her preferred lender, Prospect Mortgage, her broker Wells & Company, and her marketer, Corrin Keck, of C Keck 4 Marketing & Promotions.

Susie, many people think there is no money available for home loans, or that banks aren’t lending.  What’s your perception?
Susie: Money is plentiful for qualified buyers, especially for FHA and VA loan products that require minimal, if any, down payment.  Of course there are still conventional loans available as well.

With so much media attention on the resale market and the mentality of buyers wanting “the best deal,” are there buyers looking for new homes?
Susie: Yes there are buyers!  However, some buyers think they might be interested in a foreclosure or a short sale, but the reality is that many foreclosures are uninhabitable and short sales are hard to buy, hard to close, and if they can close, face lengthy approval and funding periods.  My experience has been that today’s buyers are interested in new construction if it’s priced fairly on a like-for-like basis with the resale competition.

What are the benefits of employing a full-service broker vs. maintaining a local corporate office?
Susie: Other than corporate administration, a full service broker can provide all the necessary functions of a local corporate office at a fraction of the cost.  It’s truly back to traditional fundamentals for new home sales.

Let’s expand on that term you just mentioned—“it’s back to traditional fundamentals for new home sales.”  What does that really mean?
Susie: We are back to earning every transaction.  Offer a value proposition, then deliver on your promise.  In other words, build a quality home and do what you say you’ll do!

Why is it important for new home builders to work with the realtor community?
Susie: The realtor community ensures compliance between both seller and buyer, along with providing a valuable extension to the credibility of the builder.  However, one of the most important reasons for a builder to work with the realtor community is that it increases the project’s exposure to a much larger pool of buyers.  And let’s face it…buyers are what we are all looking for.

Why is it important to use a preferred lender?
Susie: By using a preferred lender, such as Prospect Mortage, the builder is given priority status and the builder’s prospects are given VIP position with the preferred lender throughout the lending process.  The preferred lender will always act in the best interest of the builder and the buyer to maintain both their preferred title and their business relationship with the builder.  Ultimately, a preferred lender is used to maintain control of the transaction and secure the close of escrow.  They are the builder’s GPS tracking device in the lending process!

Susie, you are a huge advocate for the new home industry.  Why might someone buy a new home versus a resale home:
Susie: Well, to start, for buyers there are numerous motivating factors, from from newer floorplans to newer neighborhoods to newer features and too many reasons in between!  For example, neighborhoods change over time and people want to move into a new neighborhood.  Or, schools and zoning can change which can have a huge effect on families, prompting them to want to move.  Oftentimes, energy and technology improve, and the buyer wants to take advantage of that.  On the whole, buyers perceive a new home to be worth more than used—they get it their way.  And they can stay in their price point.

You continue to market and advertise your community when most builders have stopped.  Why is that so important in a down market?
Susie: First, the project must have exposure to create traffic; traffic = sales.  And we have been very successful!  In order to accomplish that success, I’ll go back to my original statement of using a full service broker, whereby the builder appoints a Broker of Record that is also a Realtor. This is a huge advantage as the Broker of Record/Realtor opens the door to MLS and gives the builder full access and control of that real estate activity. Our Broker of record/Relator, Wells & Company Realty doesn't represent home buyers, thus there is not competition between the builder and the Broker of Record/Realtor. This in itself becomes a marketing tool for a lot less money and creates this positive, sales-producing domino effect.  This combination of using the broker that exposes my project to a pool of realtors in the community via MLS, plus the print, radio and TV ads, has helped me sell this community.

Appraisals have been an issue for the builder and the lender.  What has been your experience?
Susie: While working with the preferred lender, you are able to police any issues with the appraisal that may arise head of time, because you are both very aware of what has sold and closed in the community.  I have found while managing the appraisal process that if I give sufficient and accurate documentation, it gives the appraiser the opportunity to come to an accurate appraisal.  The more information you can use to back it up, the better the process.  Going forward, I would suggest that builders consult with an appraiser or an affiliated appraiser group in establishing documentation for the project at hand, and assisting for future appraisal values.  For example, when employing green technology in a community for which there are no guidelines set for valuations, why not invite the appraiser in and overcome the objection before it happens.  It creates a win-win for everyone.

Susie Peak
Recipient of the BANN-ER Award for Outstanding Real Estate Sales Person
2007, 2008, 2009