Truly understanding what buyers’ considerations are during the new home buying process is essential to building a successful marketing campaign. With so many incentives and deals offered to attract buyers into new home neighborhoods in today’s soft market conditions, it is important to evaluate each of your communities with buyers’ eyes.
Payment – Your potential customers start their home search with a range of home prices in mind, but what ultimately matters is the amount they qualify for. What incomes and down payments are necessary to buy your home, and what are the other factors that are most important to your potential buyers?
Resales – What is available in the resale market in your same payment and price range? Your salesperson should have visited every listing. To clearly illustrate your market position, chart your community’s total monthly payment and compare it to your competitors’ payments AND the choices available in the resale market. Be sure to account for all items that would affect buyers’ monthly payments, including the minimum down payment that your buyers are bringing, as well as taxes, association fees, insurance fees, and any other additional costs. What value are you bringing to the table?
Realistic Pricing – Next, evaluate and make adjustments to pricing based on the perceived value to consumers of your neighborhood and your location in relation to your competitors. Local brokers can be a very helpful resource in understanding consumers’ perception of these things. Some items to consider:
- How do your drive times to employment, retail, and entertainment compare?
- Is your neighborhood in a better or worse performing school?
- What is the appearance of the adjacent neighborhoods?
- Is your neighborhood part of a masterplan with a multitude of amenities that do not exist elsewhere?
Floorplans – Review your floorplans and merchandising in comparison to your closest competition and make the same value adjustments that a buyer would. Some examples of features that new home buyers place a higher value on include:
- Extra bathroom(s)
- Larger kitchen
- Extra bedroom(s)
- More storage space
- Higher spec level
In other areas, buyers will give up all of the above for a lower price. You have to know your buyer.
Although home sales volumes are falling in nearly every market, people are still buying houses. By objectively viewing your community as if you were a buyer, you will figure out how to be as successful as you possibly can.