Reeling in Hesitant Buyers
Assessing the “Old” Competition
New: Tailor-Made Caps for Your Buyers
August/September 2007
Assessing the “Old” Competition
New-home sales are projected to be at 904,000 this year, compared to 1.05 million in 2006.1 In comparison, existing-homes sales for this year are likely to hit 6.34 million.1 Are you poised to sell potential buyers who are weighing existing homes against your new homes? Can you compete with features like lower price and time-tested structure to reel buyers in and establish superior value?

Understanding the numbers can help you prepare to top the existing-home competition with unique draws. By studying statistics like existing-home sales, median sale price and age of existing homes, you can identify consumer patterns and develop creative ways to encourage prospects to buy new.





New homes are continuously evolving. The standard two-bedroom, 1,000-square-foot home of the past has become a three-bedroom, two-bath, 2,400-square-foot haven of modern amenities - helping to make new homes a more attractive choice for today's buyers.4 But overcoming the existing-home market requires more than just a great product. Combating the lower price, established-neighborhood argument takes creative planning. Consider offering more for the money, such as “green” design, three-car garages, landscaping and build-to-suit options. Then get the word out with strategic marketing to win those buyers over and get them into your homes.


1. “ Tighter Lending Standards Good for Housing, but Will Dampen Sales *,” National Association of Realtors® press release, April 11, 2007,
2. “Existing Home Sales Overview *,” National Association of Realtors,® posted on July, 2007, accessed on July 10, 2007.
3. 2005 American Housing Survey, conducted by the Bureau of the Census for the Department of Housing and Urban Development (HUD), Housing and Household Economic Statistics Division.
4. "The Home of the Future: Looking at New Homes in 2015 *,” National Association of Home Builders, House Keys e-Newsletter posted on March 20, 2007, accessed on July 9, 2007.