The less we pay to borrow money, the more we can save in when we pay off the loan upon completion of a house. Another way we save money is through offering sales incentives and discounts for our buyers for using our lenders for financing there home. We want the buyers to use our financing company to purchase their homes so we can offer them a good interest rate and they repay their mortgage to our company owned lenders. One of the last ways we try and save money is through acquisition of own Title Company. We have invested in 50% of a title company. This also saves us cost on completing and preparing all of the legal issues and paperwork on the home. Part of the Title Company works exclusively for MHI and handles all of the closing costs and procedures for the seller and well as the buyer or homeowner. .
In Texas some of our competition are Centex Homes, Choice Homes, U.S. or General Homes, and Perry Homes. Most of these builders offer a cheaper plan that MHI and do not require a substantial amount of Earnest Money down to purchase. Most of these builders have "special" programs to help the buyer "s ability to afford the purchase of a home. MHI does not currently have a program such as this in place. As a company we may be losing a portion of market share because of our strict requirements on purchases. .
This also effects the demand of our product, which is the "relation showing the quantities of a goods that consumers are willing and able to buy at various prices during a given period of time, other things constant."(McEachern, p. 46). As our price goes up, the consumers demand for the product decreases. The prices of our financing can also effect the demand of our product when compared to the competition. We have tried to combat this issue with offering free furniture up to $2500.00 based on a home purchase. This incentive is promoting the growth of sales and increase MHI "s attractiveness in the market.
