WHAT WILL SELL NEW HOMES IN 2005?

Does a change in market conditions from one year to the next actually change “what will sell new homes”?

I think not! You might change your specifications or incentive packaging. You might introduce a new design. But it is the selling process that is important to a consumer not the outcome.

Monarch Corporation espouses the following quotation in all their sales offices “The bitterness of poor quality remains long after the best price is forgotten”. Sure, there will be a small fraction of the market that will buy on price alone – but it is very small.

Most consumers buy on an emotional definition of value. This definition will be special to each consumer – as they match their expectations to the reality of your product – not the other way around. This means that more than the “bricks and sticks” are important in the buying decision. This means the consumer is driven as much by the buying experience as by the product you are offering.

The key to your selling success in 2005 is in creating, defining and selling your differentiation.

Only one of your competitors will provide the absolute best price in your market. Many more may try or claim to try when in fact the consumer only uses price to keep score. Price is only a measurement to eliminate your offering versus the long list of competitors. Price is rarely the primary motivation to purchase.

There will be as many special distinct motivations to purchase as you will have consumers – factors such as: timing, affordability, product preference, finishing budget, ego, status and community all combine to set a consumers definition of value.

How you differentiate your offering and more importantly how you guide the consumer through your process – on their terms – will set you apart in 2005.

What will sell new homes this year starts with a definition of who you are, what is your offering and how you deliver the total buying experience to your customers.