Monday, February 7, 2011

New Home Sales Back to Basics

With new home sales somewhere between mission impossible and nonexistent it is more important than ever to get all the basics right. With every article in the media telling the home buyer that they can buy homes at pennies on the dollar it can be easy to fall into the mindset that sales is all and only about price.  It can be if you let it be. In this article we will discuss selling the area first.
New home sales start not with the home but outside the home. The saying goes the three most important ingredients in home value are location, location and location. That has not changed. Find out if the new home buyer is from the area. In our sales office we always had a large scale map that showed the area around our projects. The scale was large enough to include nearby shopping malls and other important facilities.
Next in progression we had a map of the more immediate area including the most important ingredient of location; schools, schools, schools. Make sure you get all the information on the local schools that are served by your location. The school districts will likely be eager to help you with information from test scores to number of National Honor Society members. School districts have to sell the public on their value so they will have the information for you. 
The immediate area map should also include recreation opportunities. We always believed the recreational opportunities for the children were the leading attractions; little league, soccer, dance studios, parks, even movie theaters. Do not forget the adults; golf courses, bowling alleys, etc. We once sold several homes in a subdivision because of a nearby snowmobile trail including to several customer who had never been on a snowmobile but liked the idea.
The municipality, park district (if different) and Chamber of Commerce will also have information that can help you sell the area.  Hospitals and medical facilities are important. Access to assisted living facilities for elderly parents of your customers may be appropriate. Even if you do not display it on your map have it on hand should the topic come up in conversation.
Once you have sold the area move into the benefits of the neighborhood in which the home is built; all cul-de-sacs, near transportation, wide streets, wood lots, etc. Pay particular attention transportations to major employment centers such as train, highways even busses if price range appropriate. Without selling the neighborhood you may find that you go through the entire process to lose the sale to the deal killer that you could have discovered within minutes.
If you do hit a roadblock can you sell a built to order on their lot in a location that may be better for them? Are you set up to build on an individual lot instead of only in one of your projects? If not what does it take to set up to do individual lots.  Building only in locations where there is corporate infrastructure can be more comfortable and even less expensive but in this market you need to be flexible and be ready to take advantage of opportunities as they come. It may take some emotional strength to avoid trying too hard to sell a location that will never work for the customer so you can move another lot but losing the sale does not help your bottom line either.
Once you have sold the area, municipality and neighborhood you are ready to begin selling the home. In future articles we will deal with selling the home.
Original material copyright 2011 Thomas Robinson

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