There has always been on ongoing debate regarding lowest price and best value. These are not necessarily the same. The argument is made that a higher price can be paid for a better value to the customer. Added amenities, security, features, and so on have been able to demand a higher price in the past due to the added value they provided.
In today's market, what is perceived as value is beginning to change. Some of these items are beginning to be seen as luxuries, and price is becoming a much higher priority.
True, in most cases you get what you pay for, but in every case your product is only worth what someone is willing to pay.
Price reduction can be seen as a sign of urgency, negotiation, or even given up, but in some cases, it is the right thing to do. This is only one reason it is so important to assist sellers in their effort to price effectively for the current market. Even then, however, there are times that price adjustments will be necessary in the process.
Though priced competitive in the market, and providing a great value with a gated custom home community on large lots with product under $400,000, in our current market, this is not enough. There's no benefit to being priced competitively in a price point that's not selling.
Having recognized this, at Park Creek, we have decided to offer a 15% discount on our current lot prices until the end of the year. This is a cost savings of up to $42,750. We are curious to see if this is enough to spark some additional interest, or encourage our current fence sitters into making their decisions.
I welcome your thoughts on this point, and will keep you informed as we proceed.
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