What’s More Important to New Home and Remodeling Buyers Today- Price, Design or Location?
Isn’t this a question you’ve pondered nearly every day over the last 5 years? We’ll, we may have the answer. John Burns Real Estate Consulting just released a survey of 10,000 prospective home buyers (all types of homes, not just new) and the results are quite interesting. Check them out.
Yes even after all the changes in the housing market, location still is at the top of a purchase decision. Style and Design come in #2 with price filling out the top three considerations.
A couple of interesting notes…
- If you’re a remodeler and you’re focusing on price before design, you’re missing the boat. Your prospects are more concerned about getting the design right vs. getting the lowest price. So why would you utilize a sales process that has design 2nd and pricing first. Get your designer in front of your prospects before you dive too deep into the scope of work or specifications.
- If your a home builder who can upgrade to an A location (i.e. closer to work, amenities, better schools, etc.) do it immediately. There are always pocket locations with demand and plenty of bank owned properties to consider.
- If you have the option, never build the same model home or available home twice. Take a queue from the auto industry and focus on continual design improvements. Build homes with features, rooms and amenities not available in the used market.
Finally, look how New Home Construction rated in the survey. Only 4% of prospective buyers rank it #1 in their considerations. Part of your marketing, advertising and sales plan must include educating your prospects and local Realtors on the benefits of new vs. used. The focus should be on the short-term bait and switch of a low price used house vs. the long-term low cost benefits of a brand new home. Remember, the biggest hidden cost of used homes is the future remodeling required to update to the way people live today.
You can read the full article here.