Realty Executives in The Villages
Walter Coe, Ph.D.
Broker Associate (352) 516-3480
Walter Coe, Ph.D.
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Sometimes we get so accustomed to our thought shortcuts and assumed beliefs about a subject that they can actually limit the integrity of our thought process and decisions - - - especially if we fail to question or reject flat-out-false assumptions. This may very well be your last really big purchase. It warrants good preparation and some deep thought. Here are a couple commonly held perceptions about The Villages market that you may want to reconsider:
"Slashed Prices" on some of The Villages developer's newly constructed "Spec-Homes" are great values . . . . Really? "Spec-Homes" are like pre-owned homes insomuch as "what-you-see is what-you-get." You can't make any feature changes. But unlike pre-owned homes, the price is NOT negotiable and there are substantial other costs that a buyer doesn't incur when buying a pre-owned home.
Over 2,000 buyers last year found pre-owned homes in The Villages to be a better value than spec-homes. Why? Because the average home built prior to 2007 in The Villages are better-constructed, more convenient to the major centers of activity, the greater Spanish Springs and Lake Sumter Landing area, and usually upgraded more so than a new spec-homes.
The "slashed price" concept is one of many marketing techniques The Villages developer uses to manage the buyer's perspective. There is an abundance of research that suggests that the average buyer believes discounted products and services yield savings. In some cases that may be true, but never on products and services that are in high demand. What's usually on the "discount rack" is mismatched colors and over-sizes that haven't sold even when demand was high. It's the same with slashed-priced homes in The Villages.
Think about this fact . . . In addition to pre-owned home sales, The Villages developer sold over 3,000 new homes last year. With well over 5,000 actual buyers demanding homes in The Villages last year, what could possibly motivate The Villages developer to discount any of its spec-homes? Could it be that those homes that are heavily discounted have a strong negative feature that can only be overlooked by the buyer if the price is "slashed"? This concept is also used as a "hook" to attract uninformed buyers to the more expensive new homes.
Unfortunately, those that buy into the "slashed-price" ploy will discover the true impact of their decision when they attempt to sell their home in the future. For example, The Villages developer charges a premium for homes that back to streets, even those that back to the busiest streets. But upon a re-sale, homes that back to streets must be heavily discounted to compete against otherwise comparable homes and attract buyers.
Emotional decisions often result in disappointing results.