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What's the REAL Reason People Buy New Homes?

By
Real Estate Agent with East West Realty 0226005035

Ever wonder why people will buy new homes? Is it the location? Is it the floor plan? Or is it an unhappiness in their current home? Is it a combination of different reasons? It's important to understand our buyers' motivations when they inquire about your model or new home for sale. As I was preparing for a recent sales meeting, I found notes from different seminars and books I've read from new home gurus like Myers Barnes, Bob Schultz, and Dave Stone. Here are some of the underlying reasons why people decide to purchase a new home...

Facts and Features deal with logic, which relates to the head, but benefits deal with emotions relating to the heart.  Need to help them “feel right” about our community rather than thinking about it some more.

Most salespeople are better at educating than motivating – need to better understand human nature, and what motivates people to make large purchases.

1. It’s the right price. Are they really shopping price? They may think they are, but they actually buy based upon what their perception of value is. Cost will not be the final factor in deciding what neighborhood & home they choose.

2. It’s what we need. We always seem to want more than we need. Because our wants and desires are emotional, whereas our NEEDS are logical. Shoppers buy a feeling, a perception of satisfaction that our community lifestyle promises.

People decide to buy a new home to improve their lives! What does this imply? That something is wrong with their lives…everyone has a current dissatisfaction.

A person’s desire to improve their life has more influence over their buying decision than any other factor.

Buyers give us their specifications, and they buy their motivations... 

Factors in getting people to move

  1. Current Dissatisfaction -there is a pent up demand and there’s a stronger urgency to purchase today! Salespeople need to realize and understand the dissatisfaction curve.

  2. Future Promise -engage them, get them involved emotionally, get them to see the future promise

  3. Cost and Fear -holds people back.

     

    PEOPLE WILL BUY WHEN…

    Current Dissatisfaction  X   Future Promise   >   Cost/Fear

    The majority of salespeople start with the Cost/Fear and work backwards. If there is a zero on either of the left side variables, what does that do to the rest of the equation?

    If the Current Dissatisfaction is very, very high, the Future Promise can be lower, and vice-versa . We used to call it "breeding discontent" in their current situation.

    A surprising Future Promise can create a Current Dissatisfaction. Maximize the Dissatisfaction & Future Promise, you’ll have little work to do on the Cost/Fear.

    With any given buyer, you must be able to identify the most important variable in order to get them to move forward.

     

    Celebrating our 40th year creating Virginia's Best Places to Live and Play. Discover the best in lifestyle communities at Founders Pointe, Eagle Harbor, Liberty Ridge, and The Riverfront at Harbour View. East West Realty Sales Centers are open 7 days a week on-site. 

     

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Posted by
Mark Edwards (757) 288-7584
Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Colorado Broker / Referral Services

Great posting, Mark!  There is NO doubt, that once a person discovers their WHY, how that becomes the most motivating factor out there.  Whether it is to buy a new home, build a business, generate a new stream of income, they will motivate from within.

Jan 24, 2014 10:57 PM
Mark Edwards
East West Realty - Suffolk, VA
East West Realty

Thanks Dan, appreciate the comment. Hope you have a great 2014!

Jan 24, 2014 11:09 PM
Graziella Bruner
NCS Premier Real Estate - Detroit, MI
Associate Broker - Serving Wayne & Oakland County

This is so very true and the key Mark ~ knowing the WHY!  Wishing you the best in 2014!

Jan 24, 2014 11:29 PM
Mark Edwards
East West Realty - Suffolk, VA
East West Realty

Thanks Graziella. It's always good to refresh ourselves on our sales process. Have a great weekend!

Mark

Jan 25, 2014 12:01 AM
Robert Vegas Bob Swetz
Las Vegas, NV

Hello Mark and (New) Homes are great because a home buyer can modify and tweak the home to their needs. Also in Las Vegas Nevada, a new home isn't much more than a 10-20 year old home so why not buy new? Great Post ...

VB ;o)

Jan 25, 2014 01:12 AM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

Eeellent post that I have not given good thought to It akes a lot of sense in what you are saying  Oeroe the fear and you will hae a goo buyer 

Jan 25, 2014 08:55 AM
Mark Edwards
East West Realty - Suffolk, VA
East West Realty

Jimmy, Thanks for commenting and stopping by. Hope you have a great 2014!

Jan 25, 2014 09:36 PM
Andrew Payne Realtor® Richmond VA Homes For Sale~804-938-5257~
Piedmont Real Estate - Richmond, VA
Richmond, VA, Real Estate, SRES®, NAR Green

Mark,

Homes are the biggest investment for most people.  A lot of people like a good value for what they pay determined by current market values in a specific area.  I think it's a good idea for us to be both educators and motivators.  However, home buyers also need to have some sense of motivation, also.  Then agents can help stoke the fire.

Jan 25, 2014 11:31 PM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Great ideas for working with Buyers. To be successful we need to be Good Listeners. When we understand the Buyer, we can determine when and how to build the fire.

Thanks for the post.

Feb 02, 2014 05:47 AM