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.