No one sells products. Whether you’re peddling shoes, computers, or a new home, the close is not centered on the product itself. It’s about the perceived value to the buyer. Value is the point where the customer accepts that the item to be purchased is delivering sufficient worth in relation to the price. If I need gas for my car, I have the choice of paying the high cost per gallon, seeking alternate transportation, or staying home. I have to determine what my time is worth to pursue the alternatives to the distressing price of gasoline.
In the new homes market, we need to recognize that the features of a particular home do not close the sale, nor does a great location. If the buyer does not deem that property to be worth the price you’re asking, you won’t make the sale — that is, until you can effectively communicate the reasons that this home is worth more than what they will pay.
This is where you need to serve up a juicy dose of tantalizing rationalization. Your prospective buyers are likely comparing your property with another home priced at a lesser cost. They need your help to quantify the difference. It’s not the bottom line you’re selling, but that price differential.
Here’s an example. I go to a department store in search of shoes and see a pair of Allen Edmonds that cost $300. There is a pair from another designer that sells for $200, which is what I had expected to spend. Why then would I spend an extra hundred bucks? The salesperson explains that the Edmonds shoes, which are crafted of exquisite leather, come with a lifetime guarantee. Scuffs, new soles, or even replacement shoes are covered in my $300 investment. In the long run, the higher-priced shoes are a better investment. I buy the Allen Edmonds and walk away feeling thrilled with my purchase.
In this case, the salesperson would get a commission regardless of the pair he sold me. In new homes sales, you don’t work in that comfort zone. So you’d better be prepared to sell the value proposition that underscores your property. Communicate with complete conviction the reason that this home is worth more than another property. Sell the details and the benefit of each. Know what this buyer wants in terms of value. In truth, a home buyer doesn’t need a salesperson to offer information. What they need is an energetic individual to give them that irresistible serving of rationalization with the confidence of a master chef serving a gourmet meal, knowing that the price of such unequalled delight will not be questioned by the diner. Check, please!
