A new home is likely one of the most significant purchases a person will make. It is more than just a building; it is their dream and their future. So many factors play into a buyer’s decision; understanding them will lead to more successful interactions with prospective buyers and more home sales. Our research study into new home buyer attitudes and preferences told us the top three priorities for buyers during their buying process are location, cost, and durability. We have discussed location; now let’s talk about cost. Cost seems to need no explanation, but addressing the second most important priority for new home buyers goes deeper than the sticker price of a new home.
Clear and Concise Pricing
Nobody likes financial surprises. Providing clear and concise pricing will relieve some of the financial anxiety for prospective buyers and build their trust in you.
Most buyers head into the buying process with a clear idea of their intended price range and don’t want to be roped into something else. Don’t overwhelm them with a large number of options. Instead, entice them with the best you offer in packages or bundles. For example:
Home A –
Package A has a price of $350,000
Package B has a price of $380,000
Package C has a price of $420,000
Make a clear comparison of features like the number of garages, baths, bedrooms, and the home’s square footage to allow the buyer to understand the price range. Use the rule of three: low, mid, and premium price points. Providing clear base pricing reassures buyers that they are making choices they can afford. The transparency and availability of pricing information will increase their trust in you.
$250,000 - $500,000 – 42%, 18% intend to spend
$500,00 - $750,000 – 18%
$750,000 - $1Million – 10%
More than $1Million – 5%
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Online Tools for Customization and Clarity
70% of buyers in our research study said they have used home builder websites for inspiration. Your website must have visual displays of the homes you build and online tools for those potential buyers looking for inspiration to explore their design options.
Even with the base price packages or bundles we mentioned, buyers have customization decisions to make. Providing buyers with control over the direction of their purchase while maintaining the comfort of pre-packaged options leads them through the decision process without stepping on their toes and pushing them out of their comfort zone for pricing.
Interactive online tools like interactive site and floor plans allow buyers to explore on their own and tailor their options and design packages, creating a sense of ownership before they engage in conversation with your sales team. These tools also offer insights to your sales team on the buyer’s preferences, allowing them to tailor their approach and streamline the sales conversion process.
By offering pre-defined packages and the flexibility to customize, builders can cater to diverse needs across all buyer segments.
Revolutionizing the Mortgage Process for Buyers
Even when a buyer knows their intended price range, this is not solidified until they have secured a mortgage from a lender. We were surprised when our research showed that 50% of prospective buyers would like to apply for their mortgages online; they prefer a less personal and more transactional approach to the mortgage process than in the past.
Home builders can facilitate the mortgage process online through their websites, adding another benefit to address prospective buyers’ concerns about the cost of their new home. Multiple lenders can be integrated into your website, providing the home buyer with different lending options and you a potential revenue stream from the lending institution once a mortgage is approved.
Knowing what matters to buyers is crucial if you want to sell homes. When you understand that cost is their #2 priority, you can address it on your website and in your sales approach in a way that builds confidence and trust with buyers. Want to learn more about home buyer priorities? You can download the executive summary, explore our research data, or watch a presentation that walks you through the most crucial points: How Consumers Buy From Home Builders Online: A Research Study.
Check out the research!
