Why New Home Prices Move Up So Fast In "Rising" markets (and so do resales).


by David Fletcher

This is a touchy subject with Realtors, because they don't understand. They think rising prices are tied to costs only. Actually they are tied to profits and profits are tied to momentum,especially with production builders.

Let's keep this simple. Let's relate price increases to something that if the builder does not have, the builder will not be successful. It has nothing ot do with cost and every thing to do with urgency and customer satisfaction.

Where else than in a new home community can a buyer make a home purchase, move in and get that 'I'm glad we bought when we did" feeling as the same house they bought increases in price in the months following their purchase? It's called 'Urgency" and Realtors get very little if any training or education in this area.

And Realtors use the rising price urgency all the time in their sales presentation because they know that the possibility of an increased price is real and can cause indecisive purchasers to make a decision to buy instead of wait. 

Rising prices are great closing tools for both resales and new homes. and s

 

 




David Fletcher
David Fletcher

Author

New Home Co-broker Academy Llc Founder David Fletcher writes all-in, left-it-all-on-the field online real estate courses for general real estate agents who hear the new homes sales door knocking but hesitate to open it, due to their own fears, and therefore are leaving thousands of commission dollars off the table. As of January 2018, more than 2500 Realtors have earned the New Home C-Broker (NHCB) designation, completing a three-hour course, How To Build A New Homes Niche. His courses are based on his $3 billion new homes sales record as a listing agent for more than 70 condominium and single family subdivisions.



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