1. Tidewater Builders Association May 24, 2007

2. Market Overview April EOM Overall REIN Listing Inventory 12,779 units46% Change from 2006 Southside 9,746 Peninsula 3,033 April EOM Average Market Time61 Days There was an influx of resale inventory put into the market place in the Fall 2005 because Sellers thought the “ceiling” for pricing had been achieved... and wanted to get what their neighbors got! Potential Buyers now are trying to figure out where the “floor” is before they buy.

3. We must return to the Basics of Selling… Because of increased inventory, your prospect is looking at re-sale first and it can often show better than the standing inventory in a new home subdivision

4. Case In point…Photos

5. Be sure that you demonstrate the benefits of buying the home NEW and educate the prospect on the risks of buying USED Have a flyer listing the benefits on the counter when it is shown itemizing the differences between new construction and resale

6. Price your home realistically. The incentives sound great but the bottom line is to take it off the price. If you are giving incentives…don’t offer them up front. Get the traffic in the door and let the Agent use an incentive to CLOSE the sale. Otherwise Buyers see the incentives as a place to START their negotiations.

7. Is your inventory getting exposure? Are there signs up with info flyers on it for traffic that visits outside site hours? Is someone readily answering the phone when an inquiry comes in and closing them for an appt to see it? Are there updated info in the REIN system?

8. Make sure there are photos everywhere…Here’s an example: $1,100,000 house with “No Photo Available”…there are so many choices an agent will move on.

9. The Market Is... Our market pace slowed dramatically because we lost our pricing discipline. Move the green line down and the red line will move back up!

10. Bottom Line… The market is what the market is and WE must believe that it’s a good time to buy or the buyers will sense it. The solution is in our hands…Price it right, use incentives effectively, and educate the buyer on why they should buy your home.