I know an inventory of new homes may look like an asset on the balance sheet, but they can clog your cash flow. It’s time to do something different to move them, and that doesn’t mean implementing a low-price selling strategy. Let other builders focus on price. You focus on profit.
Think sales and marketing; not building and selling. Follow this six-step process:
• Offer greater or unusual incentives to move more inventory. Some incentives I’ve hard builders offer are a sunporch, outdoor shed, full-house water filtration system, move-in package (laundry appliances, blinds, refrigerator, security system), lawn care for a year, credit at a garden center or home interior store, irrigation system, a bonus to veterans/active military, cash toward upgrades, closing-cost rebates, donation to the buyer’s charity of choice in their name, a second-honeymoon trip or cruise. In offering an incentive, don’t raise the home’s price to pay for it. Buyers are savvy enough to know that being taken for a ride is no incentive.
• Research your competition so you know what they offer and what’s selling.
• Don’t underestimate your buyer pool. Even though your community may be located in Short Pump, Virginia, you are selling to an international market.
• Write a marketing plan and goals. Set a budget. Stick to it.
• Have a professional-looking web site that’s staffed with an online sales counselor.
• Make certain your salespeople are selling the home’s value; not it’s price.
• Be enthusiastic about your homes. It’s contagious.