[5-DayForum] The Toyota Analogy

[capndave2k at netscape.net]

Thanks Bill,



That's all I'm expecting it to do really.? If it will encourage bidders to bid, then we'll get that fair price.? Show that the home is better than the rest and it will encourage the competition.



David




-----Original Message-----
From: Bill Effros <bill at effros.com>
To: How To Sell Your Home in 5-Days <5-dayforum at mailman.howtosellyourhomein5days.com>
Sent: Mon, 3 Sep 2007 12:53 pm
Subject: [5-DayForum] The Toyota Analogy



David,

We've discussed this situation before.

If 2 identical Toyotas are offered for sale at the same time, but one has a sunroof and the other doesn't, the one with the sunroof will sell first, but they will both sell at the same price.

No one will pay you extra for the upgrades, just as you didn't pay the builder extra in the first place.? If prices continued to decline you can expect to get less than you paid.

There is no harm in pointing out all the extras, just don't think that will increase the selling price in this market.

Bill Effros





capndave2k at netscape.net wrote: 


Hi All,

?

We are running our sale this weekend 9/8-9.? The home is a highly upgraded 1710 sq. ft.?3/2 in Surprise AZ.? It was delivered to us from the builder in May 2006 (I was working in Arizona at the time).? The market had already begun to decline at that time and the builder was actually forced to reduce the contract price because they were offering many more incentives to new buyers at the time which reduced the appraisal. 

?

That having been said.? I'm pretty sure that I have many more amenities in this house than you would find in virtually any other house with the same plan in this community.? What I was thinking was that I would include a summary list of the builder upgrades including the original price as part of the information packet and make the Construction and Design Center work orders available to for the buyer's inspection.? 

?

My thought is that it would let the buyers see that this particular house has more "added value" than what they will see elsewhere.? We know and will have told them that we are expecting to take a loss on the house so hopefullly this would encourage them to calculate the value of the home for themselves.


What do you think?? Would this be helpful or harmful?? 



David Cron


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