Debunking the Myth of Price Resistance in New Home Sales

In spite of what you heard, believe, or touted, selling a new home is not all about price. That’s a myth that has been promoted by new home salespeople who don’t recognize that customers are sold on value, not price.

“Value” means that they are paying a price they consider reasonable for what they’re getting. A person who is considering the purchase of a Lexus appreciates that the vehicle’s value makes the price higher than that of a Hyundai. But they both have four wheels and an engine, so what’s the difference? Why would you pay $20,000 more to get a Lexus?

The answer is in the car itself and the reputation of the manufacturer. The Lexus customer is buying a product he believes to be superior—a symbol of excellence and achievement—and, therefore, worth the price.

So, are you selling your new homes as a bargain choice or are you building a prestigious brand? Are you spending too much of the conversation talking about price incentives and discounts rather than the outstanding features of the new home?

It’s essential to recognize that a buyer who inquires about discounts and incentives is telling you he’s interested in the property. He’s asking you to justify the price because he hasn’t yet perceived the value. Seize this “tell” and launch into your discourse on the many highly valued features of the home, the property, the location, and the builder’s reputation. Shift the customer’s attention away from the bottom line and focus your energy on building the value proposition in the mind of your prospective buyer.

Don’t succumb to price resistance. Embrace it! Don’t lower your standards to accommodate a price inquiry. Elevate your customer’s standards to appreciate the new home you are selling.

By Myers Barnes

Retrieved 27 November 2012 from http://www.myersbarnes.com/blog/2012/11/debunking-the-myth-of-price-resistance-in-new-home-sales/

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