I received this e-mail from a sales professional in Utah, who asks a very good question:
I’m finding that there is a disconnect between what the Buyer wants – what solves their dissatisfaction – and what they can afford. It’s because they think the bad economy will give them a $600K house for $375K. It means I have to solve their dissatisfaction in two ways: by what they want AND by the price they can actually afford and then try to bring those two aspects together. The problem I’m encountering is that I can do all kinds of educating but it still ends up being a disappointment – and some actual disbelief. They end up refusing to make a decision because they’re certain that what they want for what they can afford will be out there if they just look long enough. Any suggestions?
Getting in touch with this concept we call “reality” is a normal part of the homebuying process. The only difference between the prospects is the length in that journey towards acceptance of the facts. The good news is that all builders are playing from a level playing field; the homes are priced on the same platform so you’re not going to lose a buyer to another builder (or even to the resale market) in the scenario you described.
The biggest issue however is whether the buyer wishes to move at all. I can fight the battle over timing, and I’ll take my chances in persuading that I have the best home for that prospect. But if the prospect is considering staying put the battle becomes much more difficult.
Your first order of business is to identify both the motivation for moving and also the urgency to make a move. If they simply cannot stay where they are at based on their current situation, you know they’ll quickly come to grips with the realities of pricing and terms.
If they are stuck on the perception of a $200,000 discount from your at-market pricing, we have a name for that person: Non-Buyer!