is saying to your prospects,” he said. “Tell the loan officer what you want, as a new home salesperson or builder, to make the experience the best it can be for your buyers.”
“Buyers who have a good experience usually generate referrals for that builder or even buy from the builder again,” he said.
Salespeople also need to explain financing in language that buyers can comprehend.
“Most buyers don’t understand what it means when you are offering 4.5% and the market is at 5%,” said Grasst, adding that salespeople can close more sales by explaining the intricacies of financing in clear terms.
Grasst also cited the advantages of explaining how buyers negotiating with builders can reduce their monthly payments without the builder reducing the purchase price of the home. He said that builders, rather than reduce the sales price, apply the negotiated difference to
the downpayment. As an example, he said that applying a 3% purchase price reduction to the downpayment instead of the sales price could actually reduce buyer monthly payments by 11%.
Looking at the financing this way, Grasst said, a salesperson can create value and urgency by claiming that the buyer now has “the same payment as a home costing $27,500 less” or that the buyer can save “$48,600 in interest savings over the life of the loan.”
Buyers can more easily relate to financing — and savings — when they are presented this way, Grasst said.
“For many home buyers, financing is the biggest fear and obstacle they have to purchasing a home,” said Grasst. “If you as the salesperson educate yourself, then you can also educate your buyer and take that fear and turn it into a reason to buy.”
Article provided by the National Association of Home Builders (NAHB). Webinar replays are available from NAHB.
Are You a Leader?
Would you like to get more involved in the association, meet new people, gain recognition for your company, and have a ton of fun in the process? Consider a leadership position at the council or committee level!
GHBA has 16 councils, committees and divisions, and they are each seeking leadership volunteers year- round. What's your niche?
Your commitment could be as small as joining an event planning sub- committee, or as large as jumping on the leadership ladder of the board of directors. Either way, you are guaranteed too improve your pipeline of networking opportunities and add a little pizazz to your resume.
But remember, leadership brings responsibility. For more information on what's involved, contact Joshua Dick at
jdick@ghba.org or (281) 970- 8970 x.140.
GREATER HOUSTON BUILDERS ASSOCIATION – BUILDING A BETTER FUTURE | HOUSTON BUILDER | DECEMBER 2011 17
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