Peoples Gas Builder News provides short informative articles of interest on natural gas to residential builders and developers. Topics range from general overviews to specific tools that help sell homes. Contact your residential business development manager or call 1-877 TECO PGS (select Commercial, then option 4) for more information about building with natural gas.
The real estate environment has prompted many builders to change how they build. Builders across the nation are building smaller homes at lower price points. Yet, while reduced cost continues to be an emphasis, homebuyers see price as the most influential factor just 17 percent of the time.* In other words, just one in six buyers is most driven by price. As builders continue to focus on lowering cost by optimizing materials, removing waste and extraneous details, is it possible that what homebuyers prefer is also being removed?
In a recent national study, 28,000 homeowners were asked about their energy preference. Seventy-five percent preferred natural gas for cooking and 72 percent preferred natural gas water heating.** Replacing appliances with electric to reduce first costs may have been counterintuitive. Knowing the preferences of those in the market for a new home can lead to more sales at higher prices.
Home buying is both a rational and an emotional process. Having the lowest price will satisfy one but not the other. If only one in six homebuyers is price-centric, is too much time being spent on the rational elements like lower price per square foot? How can you move the other five homebuyers emotionally?
We often talk about the cost-efficiency of natural gas, its dependability and other rational benefits that certainly help sell homes. Making the shift to sell a natural gas home on emotions can make a difference. It is in the making of memories around the fire pit, recreating a family recipe in the kitchen or the comforting heat from the fireplace when reading a book that emotionally moves your homebuyers.
In transitioning the focus from price to preference, everyone benefits. Your buyers will have features they prefer, a more efficient home and more home for their money. As a builder, you’ll have homes that more homebuyers want, homes that sell faster and homes that sell at higher prices.
*John Burns Real Estate Consulting “Consumer Insights 2011”
** “Customer Preference Study” conducted by Woodland, Obrien & Scott 2011
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