Builders: Ask your buyers this question…”What’s more important, price or payment?” Share this information with your prospects today!
July 28, 2011 by Coach Rick · Leave a Comment
I recently worked with a home builder client to adjust our pricing strategy where we raised the multiplier on our option pricing and lowered our base prices about $12k.
Our website has a pop over promoting the monthly comparison of renting a comparable home vs. owning. After the price adjustment our base home payment went down a measly $64/month! This was calculated using a 4.5% mortgage.
Going back to the calculator, if I raise the mortgage rate 1% to 5.5, the payment goes up $100/month. An increase of 36%!
So what’s more important, price or payment?
Here’s a great article further explaining the importance of payments from John Burns with information that should be shared with your prospects immediately.
http://www.realestateconsulting.com/content/SBMI-201107
Happy Selling!
~Rick
Related Posts:
Will the REAL Remodelers Please Stand Up!
July 25, 2011 by Coach Rick · Leave a Comment
Consumers trying to figure out who REALLY is a remodeler isn’t easy today.
As best I can tell there are three types (I’m not going to acknowledge the unlicensed scammers)…
- The single family home builder who saw their market contract by about 80% and was forced into remodeling to keep the lights on.
- The project manager who was laid off and started a remodeling business while looking for another job to get by in the interim.
- The remodeling company whose main focus is just that- remodeling. They’re focused on building a high volume, high profit renovation company.
Now, as best I can tell, most home builders really don’t like to remodel. They’ll do it until home building comes back in their local market and then won’t go after the business.
Most out-of-work project managers either found new jobs and/or left the industry completely. Their companies weren’t designed for long term success- just a plug for short term income needs.
That leaves the “real” remodelers.
If you believe you fall into this category, here’s 7 ideas I’ve seen remodelers using to attract more buyers and maximize margins.
Watch the Video and Get the ideas here > >
Happy Selling!
~Rick
P.S. According to a 2009 NAHB builder member survey, 45% of single family home builders also provide remodeling services. If you build single family homes AND have a separate remodeling division, you’ll want to watch this video.
