Holy, controversy. I recently posted a video on my Facebook page talking to all the home buying Millennials out there. The gist? Millennials are bad negotiators – agree or disagree? Enter the good, the bad and the trolls to give me a piece of their mind about why I was right, why I was wrong and everything in between.
For those that didn’t tune in to my on-the-fly Facebook live (shot while getting a flat tire changed), here’s the synopsis.
Milennials are bad negotiators. Or, they just don’t want to do it. Or, maybe it’s a combination of both . Whatever the case may be, as a general rule, milennials want to know what the price is, pay a fair market value (more or less) and avoid a haggling, nickel and dime negotiation. Whether it’s a skill deficiency or a lack of willingness to play the game, it raises an interesting point about pricing for your audience. If you think about it, this is an Amazon, Apple generation…and Steve Jobs isn’t negotiating on that Mac Book Air.
So, what does that mean when it comes to pricing strategy?
If we’re marketing a home geared toward a first time home buyer or young family, do we price the home right on the money to maximize interest and ensure we aren’t passed over by the non-negotiators? Perhaps. Milennials are a generation who watched their parents, aunts, uncles, and maybe even friends lose homes in the biggest housing bust ever experienced. So, they’re rightfully a bit more cautious and attuned to the market dynamics than some of their predecessors. Compounded with the Apple generation referenced above, and we just might be on to something here.
By the same token, if we’re marketing a single level home on a golf course, chances are we’re looking for an empty nester in the buyer pool. These are the same folks who were raised by children of The Great Depression and were taught to save their pennies from an early age. Negotiating, even haggling, comes naturally for this generation of home owners, so perhaps we leave a little bit of wiggle room in our price to allow for the buyer to experience a “win” in the negotiation process.
At the end of the day, pricing and marketing a home is an art, not a science. There are no hard fast rules – nuance, subtleties specific to a home or a neighborhood, and the strategic buyer personas targeted in our marketing plan all play a significant role in how we price and why we price the way we do.
If you’d like more information on pricing and marketing strategy specific to YOUR home, we’re here to help. Just say the word! in the meantime, feel free to weigh in on this hot topic!