Issue: 3

March 2014

Design Tool: Top Up...Top Down...
It's a Convertible!

The demand for homes with 2 suites on the main floor has mushroomed. And it's no wonder, given the number of baby boomers moving elderly parents in, widowed siblings moving in, and even non-related singles who want the benefits of home ownership.

The most common solution has been to then offer secondary bedrooms on a second floor, while in basement foundation markets, those secondary bedrooms may be designed into a finished lower level.

So it should come as no surprise that "Convertible" plans-homes which have the top (secondary bedrooms) up or down-are being designed around a single elevation that suits both options. The Telluride Grove (plan #42247) and Telluride Gable (plan #42248) are examples of this concept (see featured plans below.) Such flexibility increases the market appeal of your homes while minimizing design and construction costs!

Featured Home Plan

#42267 the Stepford Glen

2 Story - Owner's suite on the main level with 2,341 Finished Sq.Ft.

View #42267 Plan Online

Main Level: 1656 sq. ft.

Upper Level: 685 sq. ft.

Optional Lower Level adds 770 sq. ft.

"Cost" and "Price"

Price is not what something costs, it's what it's worth to the buyer. Suppose your price for a high performance indoor air purification system is $3,000. To many buyers, that costs a lot. But for prospects that suffer from asthma or allergies, $3,000 may be a bargain!

Most of us with children who suffer from respiratory ailments would value that $3,000 air purifier over other options. Nurturing and caring for our kids is a priority, and while we may put ourselves on a budget, that budget can disappear when our kids are involved (just look at the cost of weddings!)

The social aspects of an item affect the item's worth to the buyer. What will the neighbors/friends/peers think? Rather than the indoor air purifier, some buyers will invest that $3,000 on an upgraded entry door system. First impressions are important!

How does having that item make me feel? That same $3,000 might be spent on a steam + convection oven. Is she a gourmet cook and enjoy entertaining? Does she take pride in healthy eating? Does she feel she deserves that oven?

How much risk is involved? Would that $3,000 be better spent on a super insulation package (how much would that really save on utility bills?) or switching to a contemporary fireplace (you like it, but it's certainly not for everybody!)

Price is not what something costs, it's what it's worth to the buyer. Knowing what your prospective buyer values is a strong predictor of what they will spend money on. And, it helps you establish a fair price. Buyers are reluctant to buy if the price doesn't feel fair.

Value. Social aspects. Self-image. Risk. Fairness. Those should be the true influencers of your pricing. Yet most builders simply take the cost they pay, add a standard markup and that's the price the item is offered at. As Seth Godin puts it, "Cost isn't abstract, but value is."


#42247 the Telluride Grove 1-story / Rancher 1,596 sq. ft. 2 bedrooms	#42248 the Telluride Gable 2-Story Owner's Suite on Main 1,898 sq. ft. 3 bedrooms

#29355 the Durakovic 2-story Owner's Suite Up 2,498 sq. ft. 4 bedroom	#55878 the Kings Pointe 2-Story Owner's Suite on Main 2,747 sq. ft. 4 bedroom

HER Home Thought of the Day

The email series designed to answer your client's who say "I wish I had thought of that!" HER Home Thought of the Day is published Mondays, Wednesdays and Fridays. As a home builder or sales professional, forward it your to clients or share them via your social media channels!

Recent topic: Doubling up in the kitchen

Designing the perfect kitchen is a matter of personal style. Everything from your household size to meal preferences to how you like to entertain needs to be considered.

If your new kitchen has sufficient cabinet space, many people are eliminating a base cabinet and adding a second dishwasher. You may be surprised how little the difference in price is. And for individuals who set the table right out of the dishwasher (hey, they're clean dishes!) it's almost like you didn't give up any storage!

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