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New Construction Builder Presentationby Randy Bacchus

New Homes Division connect. cultivate. grow.

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Why New HomesOVERVIEW OF THE CURRENT MARKET

Office: 612.499.5744Cell: 952.928.5211

randybacchus@edinarealty.comwww.edina.com/randybacchus

Randy BacchusBuilder Resource Group - Edina Realty, Inc.

Each data point is 12 months of activity. Data is from July 21, 2014.All data from NorthstarMLS. Data deemed reliable but not guaranteed. Powered by 10K Research and Marketing.

Closed Sales

Twin Cities Region: New Construction, Single-Family

Twin Cities Region

1-2009 1-2010 1-2011 1-2012 1-2013 1-20141,500

1,750

2,000

2,250

2,500

2,750

3,000

Twin Cities New ConstructionSingle Family

MARKET

Top Five Reasons a New Homes is Better

1. New homes are more energy efficient.

2. New homes come with a comprehensive warranty.

3. Customized to your liking.

4. Higher level of quality in New construction

5. A process that is a customer friendly experience.

WHY NEW

Americans Prefer New Homes

source: *Based on a survey conducted online within the US by Harris Poll, on behalf of Trulia, from March 28-April, 2014 among 2048 adults agents 18 and older.

If costs were the same, 2 in 5 Americans would prefer a new home*

38%!No preference

21%!Prefer existing

41%!Prefer newly built homes

WHY NEW

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Generational BreakdownTARGET MARKETS

% of Homebuyers0%

10%

20%

30%

40%

Silent/Greatest Baby Boomer Generation X Gen Y - Millennial Gen Z - Boomlets

Top Cities for Building Activity1. Lakeville2. Woodbury3. Blaine4. Plymouth5. Maple Grove

1. Minneapolis2. Maple Grove3. Eagan4. Golden Valley5. St. Loius Park

2014 Year to Date!The Builders Association of the Twin Cities has contracted with Keystone Report, a local research firm, to maintain a database with information about new residential construction permits around the metropolitan area. After a builder has picked up the permit from a city, Keystone Report compiles and updates weekly residential housing permits by city for 70 percent of the metro- politan-area municipalities in the greater 13-county region. Planned units are the total number of housing units planned to be built under the permits issued (one permits is issued per building which may include more than one housing unit). Permit value does not include the land/lot costs.

PERMITS

PERMITTED UNITS

BUILDING ACTIVITY

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Why Edina Realty?WHO WE ARE. WHAT WE OFFER. HOW WE HELP.

‣ University of St. Thomas ‣ Marketing Management & Speech Communication

‣ REALTOR in 1992 ‣ Edina Realty in 1994 ‣ Bacchus Homes in 1997 ‣ Re-joined Edina Realty in 2012 ‣ New Homes Division 2014

BACKGROUND

a short bioRANDY BACCHUS

NEW HOMES DIVISION

WHY WE EXIST:

We provide that crucial link between agents, builders and consumers.

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MISSION

Offer our agents and builders, the opportunity to grow business through our extensive agent network, strong online presence, leading tools and technology, and industry connections.

WHY REALTORS

From “For Sale” to “SOLD”

Top Information Sources Home Buyers Use in Home Search*

(1/14)

From “For Sale” to “Sold!”

Chances are, the buyer of your property will come through a real estate agent.

528

Prospective homebuyers believe a real estate agent is one of the best VRXUFHV�IRU�¿QGLQJ�WKH�KRPH�RI�WKHLU�GUHDPV�

0

20

40

60

80

100

Internet REALTOR® Yard sign Open house

89% 89%

51%45%

Top Information Sources Home Buyers Use in Home Search*

* Source: 2013 National Association of REALTORS®

Home Buyers and Sellers

0

20

40

60

80

100

Internet REALTOR Yard sign Open house

45%51%

89%89%

*Source: 2013 National Association of REALTORS® Home Buyers and Sellers

Chances are, the buyer of your property will come through a real estate agent.

CONCIERGE OF SERVICES

One Stop Shop, Everything under one roof…

MARKET LEADER

For the past 14 years, Edina Realty is the Market Leader…

!

OUR REACH

NETWORKING is all about the exchange of information, and Edina Realty has the clear advantage for our sellers, our buyers and our builders.

✓ More than 60 offices throughout Minnesota & western Wisconsin

✓ More than 2300 sales associates

✓ 40% of our agents have been with us for more than 10 years

OUR NETWORK

In 2013, 34 percent of our closed sales were Edina Realty clients buying Edina Realty listings.

✓ More agents. ✓ More networking. ✓ More opportunities.

The Reason?

EXCLUSIVE OFFERINGS

Sell My Home

ProKIT

Our agents have the tools and resources, that market and sell

YOU AND YOUR NEW CONSTRUCTION HOMES AND PRODUCTS!

EDINA REALTY AGENTS

ONLINE

Be on the Website that Drives More Traffic…

STRONG WEBSITE PRESENCE

edinarealty.com!

✓Optimum internet exposure !

✓Strong national presence. !

✓2x monthly visits as our three closest competitors’ combined

NEW CONSTRUCTION WEBSITE

We put you front and center!

And showcase you as an Edina Realty Building Partner.

EDINA REALTY MORTGAGE

MORTGAGE SERVICES

✓Convenience of one lender providing regular updates on status of buyers’ loan progress as well as project approval

✓On-site presence where loan officer can assist in customer’s specific requests & provide updates

✓Up to 360-day lock with option to float down interest rate within 60 days of closing

✓Competitive rates and end loan products that specialize in meeting buyer’s needs

✓Competitive master rates that offer a cost savings to the developer and to the buyer

✓QUICK LOOKSM checks status of title with no fee to developer allowing us to break an existing master

✓Legal services to assist in filing legal documents and to answer questions through the approval phase and about the closing process

✓Construction disbursements that are fast and convenient

EDINA REALTY TITLE

CLOSING SERVICES

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Why the New Homes Division?WE HELP YOU AND YOUR BUSINESS GROW

We market and sell YOUR homes.

so that YOU focus on building MORE homes.

Together, we make it easier, and more profitable for YOU.

We help YOU and YOUR BUSINESS GROW

New Homes Division

The edge you need.