By Shirleen Von Hoffmann, Business Development Coach for Home Builders Edge Copyright 2012
Well the articles pouring out daily are indicative of our Real Estate Recovery. Builders everywhere are feeling the wounds heal and the starting the mending process of this long recession. While we are not out of the woods yet, we must forge on and start looking to the future.
Real Estate Appreciation will further slow foreclosures, provide consumer confidence and create a demand faster than anything a President can do.
What provides Appreciation? Well price increases of course.
Dare I say…I overheard a few builders talking about price increases they were considering last week at our annual local MAME awards dinner. Though modest, they were still talking about it to slow the pace a bit while they catch up their building with sales. What a lovely conversation that was.
So with that being said, here are some things to consider…
- Are your Sales Associates ready to talk price increases?
Many have grown accustom to giving the farm away for the last five years. Everyone was doing it to get the deal. There will be some training involved to pull back those reins and start utilizing the psychology of scarcity to create demand. Everything changes now, all of their scripting, actions and even pricing sheets need different thought.
- Have your Sales Associates adapted the price increase mentality?
It’s a huge switch in thinking here, one that needs to be converted first in the sales person to be reflected on the floor.
- Utilize the scarcity of resale to vault your price increases.
- In many markets there are very low, clean, resale inventory and a lot of short sales. Short sales can take months to close and may never close at all. The more the market increases the less you will see banks negotiating on price. We are already seeing that. All benefits for Builders. Do you Sales Agents know how to sell against resale? Check out my article below and share it with your team.
- What are you doing as a Manager or Builder to help them make this switch?
No matter the market, you always need to shape and grow your team. Bringing in on-site training is just as essential in a low market as a thriving market. The training just changes up for the needs of the associate.
For your training needs, call me. Home Builders Edge provides onsite, seminar and webinar training for New Home Sales Associates.