Selling Value vs. Price

Anybody can sell on price. That’s easy. I can train any intelligent person to take orders on home sales just on price point. The real test of experience is selling homes on it’s value.

So where does value come from? Really, it comes from individuals and what they perceive the value of the home to be to them. I could stand here all day extolling the features and the value the Builder believes the home has, but ultimately it is the home buyer who either agrees or disagrees with my assessment. There are other ‘market’ indicators that assist a home buyer like a CMA. (Current market analysis) These are usually done by Realtors who research what has sold recently in the area and for what cost. Then they compare a home to one that is similar in size, etc. and come up with what the ‘market’ value of that home is.

So where does value come in? When I walk in a new home, if it too big, not laid out to my liking or some other challenge, my value for that home may not be the same as someone who the home suits perfectly. So now you have two completely different values of the same home. Of course you can break the house cost down to sticks of wood and concrete and try and figure out what it actually cost to build, and valuate that way as well. The problem with this is that the “emotional” value is not there. Say this new home is one block from a school, then a young family would value it’s location more than a empty nester couple. What about the lot? Some people value corner lots more than others and land can be the same size for area, but one could have a view and the other not.

I am not saying I have the answers when it comes to selling homes or value, but I think there is something to be said for finding out what potential clients value as important to them, other than just cost.

Let me know what you think.

Kind Regards,

Larry J Clark