Once upon a time, a new home salesperson was happily skipping through the wooded common area of a local neighborhood with a basket full of brochures. Along the way, she encountered Mr. Wolf.
“What have you got in there?” he asked, peering inside the basket.
“Some brochures that describe all the features of the absolutely lovely new homes I’m selling,” the petite Ms. Red replied.
“Where is the community located?” Mr. Wolf asked.
“Right next to the county’s septic system plant, which could be a downer I suppose, but the homes really are quite lovely. Would you like to see them?”
“How much are they selling for?” Mr. Wolf asked. “They must be bargain priced in that neighborhood.”
“Only $400,000 for a three-bedroom, two-bath home,” she replied. “Did I mention they are absolutely lovely?”
Mr. Wolf rubbed his hairy chin, then said in a not-so-big voice, “Wow! A bit steep for that neighborhood, isn’t it?”
“You think so? But there are trees … lovely trees … all over the yards. For some reason, they grow quite tall in this community,” she replied.
“Yeah, well, I think I’ll pass. What else you got in the basket?” Mr. Wolf asked.
“Oh, just an iPhone I’m taking to my grandmother. She lives on a farm nearby,” Ms. Red replied.
“Hmmm, I’ll tell you what. If you throw in some incentives and a hefty discount, I might be interested in focusing my big eyes on those lovely new homes you’re selling,” Mr. Wolf said.
“Really!? We may be able to work something out. The builders are very motivated. Here’s my card. Call me and we’ll set up an appointment,” Ms. Red said merrily before skipping away.
The Moral: Don’t give away the farm just to sell a home. Instead of trying to compete with other builders by offering incentives and discounts, identify your problem. It’s either the place (location), the product (the homes), the price (too high for the market), the process (your sale’s technique) or the person (your buyer isn’t qualified). Then rethink…revise…react. Just don’t retreat.
