On today’s show, we are talking about the importance of offering a discount without lowering your price. There is so much emphasis on sale price that the value of inventory is strongly linked to the most recent comparable sales. From the perspective of the end customer, affordability is a function of the total sale price and more importantly, the monthly carrying cost associated with that purchase.
When you visit a car dealership and the dealer is offering that shiny new vehicle with a 1.9% interest rate don’t be fooled by thinking you’re getting a discount. The dealer is charging you thousands more for that vehicle in order to give you that 1.9% interest rate. They actually tell you what it costs for that financing when they say, take $5000 off the sticker price or 1.9% financing.
Most people understand the game when we’re talking about buying a new car. These techniques are not typically associated with real estate.
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Host: Victor Menasce
email: podcast@victorjm.com