In this self-talk series we are beginning to see a pattern as we listen to buyers negotiate, and look deeper into why they think they can. More often than not most of their reasoning in their thought process revolves around pricing. They’ve been told it’s their market and they can name their price. It’s our job as new home sales agents to show them the value that trumps the price every time.
Buyer says: “We looked at another house with the same square footage and the price was a lot less.”
Buyer thinks: “If I tell you that I can get the same size house at a lower price, maybe you’ll match your competition in order to get my business.”
You think: “She is doing comparison shopping on a per-square-foot basis. I need to explain the difference between cost and value.”
You say: “Settling on a square-foot price is difficult because a home’s true value is not determined by square footage, but component parts, such as the materials in the home. Let me give you an example. The price of carpet is $___ per square yard, while tile is $___ per square foot. What we need to do is determine what you would like in your home and then we price the home according to the materials we use. That makes sense, doesn’t it?”
Buyer says: “Yeah, I guess.”
You say: “In searching for a new home, there are three points to consider. The price per square foot is one of them. The other two are quality and service. Unfortunately, as a builder/developer, we can only deliver two of the three at the same time. Which two are you most interested in receiving?”
By refocusing the conversation on value and the craftsmanship, materials, and service that goes into that value we begin to break down the negotiating power of the buyers.