Prioritizing Cost: How Home Builders Can Assist Home Buyers

Prioritizing Cost: How Home Builders Can Assist Home Buyers

A new home is likely one of the biggest purchases a person will make. It is more than just a building; it is their dream and their futureThere are so many factors that play into a buyer’s decision, understanding them will lead to more successful interactions with prospective buyers, and more home salesOur 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 durabilityWe have discussed location, let’s talk about costCost 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 it will 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 have to 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, and 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 increases their trust in you.

What Buyers Intend to Spend on a New HomeUnder $250,000 – 24%
$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.  This means not only visual displays of your homes, but online tools for potential buyers to explore their design options.

Even with the base price packages or bundles we mentioned there are customization decisions to be madeProviding 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 plans and interactive floor plans provide an opportunity for buyers to explore on their own and tailor their options and design packages, creating a sense of ownership before they even 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 both pre-defined packages and the flexibility to customize, builders can cater to the diverse range of needs across all buyer segments.

a woman working on a desktop computer next to a graphic showing 50% of buyers would like to handle their mortgage online

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 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 addresses the concern prospective buyers have 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 with 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 for yourself, or watch a presentation that walks you through the most crucial points here: How Consumers Buy From Home Builders Online: A Research Study.

Check out the research!

Greg Bray
GREG BRAY, PRESIDENT & CO-OWNERAn expert in technology strategy, website design and development, server management and hosting, and search engine and digital marketing, Greg uses his 20+ years of experience in the home building industry to bridge the gap between business and technology for clients, helping them reach their business goals.