A lot of mixed messaging is coming from the media and other so-called experts about the state of the new-home market. The result? Salespeople and clients are confused about what’s really happening.
Since I have sold and managed homes sales in at least six market corrections (hard to believe, because I look so young), I have learned to embrace and build value for the market we are in at any given time. We must ask ourselves: Why my community, builder, and home? Most important, why buy NOW?
With that in mind, let’s make a bold statement about how this is an ideal time to invest in a new home.
You may be thinking, “Say what, Roland? You’re crazy.”
Let’s think this through together. We all know that we experienced a post-pandemic boom, fueled by pent-up demand and low rates. But let’s be honest and admit the stress this caused on builders, buyers, and sales teams alike. Most of us experienced the following conditions:
Many builders offered only move-in ready homes and put them on the market when they were nearly completed so they could price them accurately. This resulted in no choices for buyers and enforced a “take it or leave it” mentality. In many markets, buyers were pitched against each other and subjected to a price war with no guarantee they could end up with the home of their choice at a fair price.
Now let’s compare this with today and see which scenario is preferable for buyers:
The icing on the cake for our thesis about investing in a home now is a basic understanding of economics. We still have a shortage of at least 4 million homes, and months of inventory is down to 2.9 months nationally (much lower in many states) from the “normal” six months. Unemployment is 3.6%, which is historically low and means that income and demand is high.
Let’s distill all of this into a statement a salesperson could make early with buyers, then support throughout the process. It’s an example of what I would say, however, I encourage you and your team to create your own value statement for buying now that sounds (and feels) like your team.
“Our homeowners feel that now is an ideal time to invest in their brand-new home. Unlike last year, they love that they can choose the home of their dreams, their favorite homesite, and then personalize their home at our state-of-the-art design studio. They also love that we are including more quality features in our homes than ever before, and even have limited-time incentives for moving forward this month. Finally, they know that economic research shows we have a national housing shortage and our local inventory is low. With all of this in mind, wouldn’t you agree that now could be the ideal time for you to invest in the home of your dreams?”
Drop mic, exit stage left.
For some reason it is human nature to become nostalgic about the past, but with the correct knowledge, positive mindset, and a little practice I believe you and your team will be met with success.
Roland Nairnsey is the author of "Mastery of Selling for New Homes," and is a coach, consultant, and speaker. He has successfully sold homes for numerous builders as both a salesperson, selling sales manager, and director of sales, and is personally responsible for almost $1 billion worth of new-home sales. The founder of New Home Sales Plus, he works with builders across North America and can be reached at firstname.lastname@example.org.