Affordability Sells Homes | John Burns Real Estate Consulting

Affordability Sells Homes


An ad is helping one Texas builder called LGI Homes capture 20 to 30 combined sales per week from 3 communities.

The people selling homes for this builder know how to speak the language of their buyers. In this case, money talks.

On the billboard, there are no pictures of beautiful communities, or of seemingly happy people enjoying lifestyle amenities. There is no map, calling attention to conveniently-located transportation. There is not even a logo to spur name recognition and provide peace of mind. That is because the target buyer for this builder is a person coming out of an apartment who is focused first and foremost on a monthly payment. They were probably unaware that they could qualify to be a home buyer.

This billboard and the direct mail pieces that support it generate roughly 150 inbound leads a week. The builder is wise enough to support those leads with a very well-trained sales staff of 7 in each community and a unique sales process.

The builder also realizes the effort can’t stop there, so the entire operation is structured to speak to its target buyer. Because of that, they remain successful while consciously doing this:

  • No options and no changes
  • No furnished models
  • No focus on Realtors
  • Choosing affordable land positions that are:
    • in the middle of a cotton field
    • next to a prison
    • at end of a gravel road

This specific operating model won’t work for everyone.

This builder has been successful by offering a payment that is not available elsewhere. They think out of the box and in the extreme. If you can find the niche that has high demand and is not met by others, you can have the same success!

 


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