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What is your price per square foot?

Thursday, December 14, 2023

Every builder hears this question on a regular basis, but in reality, nobody really cares! Most consumers have no idea what it costs to build a home in today’s market. Any quality builder who has this question asked should understand that the consumer is really asking “Can I afford to build a new home?” It is just an easy way for them to do the math to get an idea of the cost.

What should be your response? I know it’s tempting to say “What did you pay per pound for your car!!” Don’t do it!! While it’s a great analogy for you and I, to your customer you will sound like a smart alec! Nor does it help to go into a diatribe about the complexity of the roof, size of the garage, finishes, etc! They will pretend they do, but they really don’t understand all that stuff.

Your customer has asked you a question. Be prepared and give them an answer. If you don’t, they will find a builder who will! Let them know that, there are many variables in pricing a new home. It depends on a lot of things that you choose to put in your new home. Ask them questions such as, “Have you been prequalified?” and “Do you know what your budget is and the payment you are comfortable with?” Then say, “Let’s sit down and price out the home you want to build, one you can comfortably afford, and get an accurate number that we can both work with.” Not only do these questions give you more information on where they are in the buying process, it also gives you a price range for the type of home they are looking for.

You are hopefully pricing houses regularly so that you can then give the consumer an honest answer to their question. At this point, the consumer can now understand that they won’t get a 2,000-square-foot home for $300K and you come across as an honest builder who knows his/her costs. Avoiding the question only places doubt in the consumer’s mind. Give them what they want.