Two things are certain as we enter the last couple of months of every year: the holidays are quickly approaching, and completed inventory homes must be sold and closed by the year’s end. Year-end inventory homes can pose challenges to even the most experienced sales professionals. Still, there are certainly ways to create value with your buyer and achieve your goal of clearing out as much of your builder’s inventory as possible.
How to Close Year-End Inventory
In the first article of this two-part series on year-end inventory, we will discuss how you, as a sales professional, can stress the value of buying, closing, or moving before the end of the year to your potential buyers. To achieve optimal results when attempting to move these sitting homes, you must focus on the buyer’s needs, not the builder’s. Speaking to a customer’s needs uses the “what’s in it for me” strategy by appealing to human nature by emphasizing the benefits we offer them.
In our highly digitized world, advertisements and marketing campaigns act as a kind of backdrop to our day-to-day lives. It is estimated that the average person is exposed to anywhere from 4,000 to 10,000 ads daily due to the advancement of digital devices, social media, and content consumption. During the holiday season, this number is even greater. Therefore, we must respond in a clear, quick, and compelling way to the unspoken “what’s in it for me” question when customers view our websites, see our marketing flyers, or visit our model homes. What is “in it” for customers to buy, close, and move before the end of the year?
The Benefits of Buying Year-End Inventory
More for Less
If you can offer an incentive, this most often translates to value. A contribution toward closing costs or a no-charge upgrade that can still be added (fencing, window coverings, appliances, etc.) results in tangible savings to the customer. If we offer such incentives, customers can save cash on out-of-pocket costs, reduce their down payment, or lower their monthly payments.
Building Equity
Buying a year-end inventory home now could contribute to equity-building potential sooner rather than later. Homeownership is often the cornerstone of financial stability and success for families across the United States. Buying and owning a home can lead to stable housing costs, tax benefits, and long-term generational wealth. These benefits are a huge advantage for many people, so it’s important to stress these factors.
Interest Rates
Purchasing a finished year-end inventory home versus a to-be-built home means that the close of escrow is determined only by the financing timeline, typically 30 to 60 days, not the build cycle of the home. This coincides with the traditional 30-to-60-day, no-fee interest rate lock most lenders offer. And what’s the benefit? There is no increase in the anticipated monthly payment.
Tax Deductions: Renters Turned Owners
Whether the customer is a first-time homebuyer or a renter looking to own again, the appeal of tax savings for this year is very real. Inform customers that per IRS publication 530, homebuyers may deduct certain closing costs when filing federal tax returns, including points paid, property taxes, and mortgage interest.
Less Competition
During the winter season, there are traditionally fewer home shoppers. This can mean fewer encounters with “bidding wars,” translating into less stress and potentially less spending for buyers to get the home they love.
Home-to-Close Buyers
If a customer has sold their home in pursuit of moving into a new one, purchasing a finished inventory home may eliminate the need to move twice in anticipation of the completion of their newly built home. This can completely eliminate the unwanted stress of relocating more than once, and this is a huge incentive for many who just want to find their true home.
Convenience in Being Home for the Holidays
For a cash buyer or customers who have already started their financing process, purchasing a finished inventory home can put them into their new home in time to celebrate the holidays. Now that’s exciting!
Sell 2024 Year-End Inventory, Look Forward to 2025
While selling your year-end inventory homes is never going to be easy, it doesn’t have to be extraordinarily hard either! As detailed above, there are advantages to purchasing, closing, or moving into a home before the end of the year; it is very possible to stress the value of purchasing your year-end inventory homes. Happy selling, everyone. Let’s finish off the year strong!
To view other parts of this article series, check out:
