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Why New Home Fixed Pricing Is Such A Paradox

Of the 3003 Realtors surveyed in the BHI study, 505 said they shied away from showing new homes because the new home price is fixed and inventory was hard to find. We will deal with the inventory issue in the next blog.

Here's the thing. Realtors are trained and expected to negotiate price. It is a major reason home shoppers uses them. But what the Realtors are not trained to understand that a 'fixed price' represents the only way their prospects can see, touch and feel what they can get for their money. 

Why is this critical to resale sales as well as new home sales? Because there is no other way for such a deep trust in 'price' can be provided to resale shoppers who can never know what a resale will cost to own because there are so many unknowns. They can't know what the seller will take, if it will appraise for sure, what the real deferred costs may be,for example. 

Do yourself a huge favor: start showing new homes first on your showing schedule, not to sell one, but to help your prospects understand what they can get for their money. It will give them a much better and faster way to determine values, whether it be for a new home or a resale. 

As a reminder, the fixed price of the new home, is the 'base sales price'.

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