Fortunately, there are several types of incentives builders can offer which are either unavailable or less common in the resale market, such as design center allowances, landscaping options and ‘buying down’ the mortgage interest rate for qualified buyers. 

Over the last 30-plus years working as real estate marketing consultants with some of the industry’s top builders, the Advantage Group has seen firsthand which incentives move inventory the fastest.

So what are the Top 5 best incentives in today’s market?

1. More options for affordable mortgage financing

The first top incentive is more affordable mortgage financing, which is popular in both good times and bad.

These days, the most popular program to make mortgage payments affordable is the permanent fixed-rate buydown. 

Depending on the mortgage product offered, this allows the seller to pay up to 3 points to lower the mortgage rate by as much as one percent or more throughout the life of the loan.  Even better, buyers get to qualify based on the lower payment amount, allowing them to spend more on a new home.

Another option to make payments more affordable is the temporary 2-1 buydown, in which buyers can take advantage of lower mortgage rates in the initial years of their loan.  As of August, this would offer starting rates below 4 percent for the first year and below 5 percent for the second.

Although buyers would still need to qualify for the payment at the full rate starting in the third year, that gives them two years to re-allocate those extra funds to upgrades, landscaping and furniture.

A third option to lower the mortgage payment is with an adjustable-rate mortgage (ARM),which are much more conservative than some of the ARM options in years past.  Today’s ARMs have much lower annual adjustments as well as stricter lifetime caps.

For example, a buyer starting with a 4.5 percent interest rate would not see a rate higher than 8.5 percent during the life of the loan.  In addition, mortgage investors also have a vested interest in avoiding ARM rates which rise too high, as that will only encourage buyers to refinance into more stable options.

2. Get creative with financing options

The second top incentive is also related to financing, in which the builder offers to pay closing costs, if the buyers agree to use the builder’s preferred lender.

But because buyers can easily compare costs for these services now more than ever, builders should ensure these preferred quotes are competitive.

In addition, conventional loans backed by FannieMae and FreddieMac also have limits on seller contributions, which range from 3 percent of the sales price for buyers putting down less than 10 percent to 9 percent for those putting down 25 percent or more.

3. Offer a generous allowance at the design center

The third top incentive is a generous allowance for upgrades at the design center.  In this case, however, because most builders enjoy volume pricing when buying wholesale from suppliers, they can offer substantial savings in the form of incentives and potentially still recapture their investment.

Still, builders must be mindful that although buyers will likely pay a premium for the convenience of having a one-stop shop for designing their new home, they’ll still be mindful of the competition.

4. Everything’s Included!

The fourth top incentive is everything included, in which appliances, washers and dryers, refrigerators, additional security features and window coverings are part of the standard spec package, making the new home more ‘move-in ready’.

5. Also upgrade outside living

The fifth top incentive is including outdoor living spaces and landscaping features or offering premium lot sizes above and beyond what is generally offered.  For landscaping, that could include an upgraded design in the front yard or installing turf or drought-resistant plants in the back.

In the past, some builders would even offer resort-like backyards with pools and spas to move their most high-priced inventory. For premium lots, that could mean a larger backyard, a corner lot or even a lot with a commanding view.

Buy the home, not the interest rate

Regardless of the incentives offered, the builder’s main job is to emphasize the value proposition with each option, with clear explanations which are easy for buyers to understand.  That’s where educating buyers to buy the home and not the interest rate is critical.  Whereas mortgages can be refinanced, poorly chosen homes must be sold.

Plus, by also focusing on the discounted or free upgrades, sales agents can help buyers reach their own dream of what a new home and lifestyle looks like much faster and easier than they would likely be able to do on their own.

Want to learn which builder incentives are working the best in today’s marketplace?  Contact our team of experienced real estate marketing consultants at the Advantage Group today.

The post Top 5 Incentives in a Softening Housing Market appeared first on The Advantage Group.

While the softening market we’re experiencing in mid-2022 has its own set of unique factors, we’re still reminded that one thing never changes:  the critical need to educate the buyer.

There is still a shortage of nearly 4 million homes

Ever since The Great Recession, builders in the U.S. have not been keeping up with demand, leading to a cumulative shortage estimated as high as 3.8 million homes.  What this means to homeowners is a natural long-term bottom to home prices due to this supply/demand imbalance, even if prices sometimes fall in the short term. 

Although the current market may be bad news for home flippers, it’s great news for buyers of new homes who intend to stay there as their lives and families expand.

So how do we educate our buyers?

Step 1. Help buyers understand the numbers

Put everything in context and build trust as a way to ignore the noise, and help them make that psychological leap towards signing the sales contract. After that contract is signed, we have developed a consistent process of communication with regular follow-ups and the reporting of construction milestones each month to keep buyers engaged.

We have found that helping buyers maintain the same level of excitement they had when signing the contract makes it much easier to glide through the closing.

Step 2. Have mortgage lenders available on site regularly

Ensure that buyers understand and trust the process of obtaining a mortgage with one-on-one conversations with an expert.  That’s why new communities sold by the Advantage Group have lenders on site two to three days per week. 

Although mortgage demand did wane in recent months due to higher lending rates, recent declines in 30-year fixed rates may soon mean a ‘return to normal’ faster than anticipated.  In addition, buyers today can increasingly take advantage of a popular program known as a permanent fixed-rate buydown. 

Depending on the mortgage product offered, this allows the seller to pay up to 3 points to lower the mortgage rate by as much as one percent or more throughout the life of the loan.  Buyers also get to qualify based on the lower payment amount, allowing them to spend more on a new home.

Some buyers are also taking advantage of temporary, fixed-rate buydowns to have more money for upgrades, landscaping and furniture.  For example, with a 2-1 buydown, buyers can enjoy lower mortgage rates in the initial years of their loan, which as of August would offer starting rates under 4 percent for the first year and under 5 percent for the second. However, buyers still need to qualify for the payment at the full rate starting in the third year.

For those buyers interested in adjustable-rate mortgages, or ARMs, today’s options are much more conservative than in the past.  For buyers this generally means the rate can only go up by 1 percent per year and rise to a maximum of 9 percent to 10 percent during the life of the loan.

Step 3. Focus on the home and not the interest rate

With less competition these days for the available supply of homes, now is a great time to focus on the home and not just the interest rate.  It’s certainly much easier to swap a mortgage with a refinance to a lower payment when rates change versus selling a home which does not meet the buyer’s needs. Whether created onsite or online, model home complexes are an excellent way for buyers to envision creating a different lifestyle in a newly built, energy-efficient home which is often larger than their current residence.

Our agents routinely act as personalized real estate consultants to confirm that the home the buyers choose not only fits their needs, but also provides a safe, comfortable refuge in which to spend quality time with their families.

Step 4.  Sell the competitive benefits of new homes

Sell the competitive benefits of new construction homes versus existing ones, especially when it comes to design, energy efficiency and technology.

• Today’s new homes are not only more open and expansive, but also interact with the outside world much more than in decades past.
• Today’s new homes continue to become more energy efficient as products improve, and in California all new homes must offer solar panels, saving the buyers on utility costs from the day they move in. 
• Today’s new homes also come with comprehensive warranties, allowing buyers to focus on creating their own version of The American Dream without worrying about ongoing maintenance headaches.

Continue to boost confidence in the new home purchase

Regardless of the steps involved, our job is to ensure that buyers feel informed and confident about their new build home purchase.  From the very first time they step into or call one of our sales offices, we strive to address their fears of buying in a changing market, fully explain the entire process of building and buying a new home, and guide them in finding the best match for their lives.

With poll after poll showing homeownership ranking as the highest means of obtaining The American Dream, our mission is to remind our buyers that getting there generally requires a long view, and not to worry about short-term fluctuations in the housing market.

Want to hear more about the steps we take each day with buyers in our new home communities?  Contact the Advantage Group today. 

The post 4 Steps to Educate Buyers in a Changing Housing Market appeared first on The Advantage Group.

A slightly less voracious appetite from buyers doesn’t mean homebuilders will end up sitting on inventory. Instead, it’s an opportunity for builders to zero in on the types of product and marketing messages that resonate with today’s buyers.

As real estate marketing consultants with decades of experience partnering with homebuilders in California and Nevada, we have seen market fluctuation from all sides. Here are some effective strategies to connect with buyers and keep inventory moving.

A new spin on adjustable-rate mortgages

Adjustable-rate mortgages (ARM) provide an opportunity for some buyers who may have previously felt shut out of the market. Today’s 5/1 and 7/1 ARM loans have been reshaped to avoid the problems with adjustable-rate mortgages that played a significant role in the Great Recession.

Current ARM loans combine a lower introductory interest rate period with the stability of a fixed-rate loan. This structure provides an incentive for homebuyers to act now, as well as some of the protections of fixed-rate mortgages that can alleviate concerns around the rate’s variability.

With a 5- or 7-year period in which the rate remains fixed (usually below market rate) and annual and lifetime caps on the amount the rate can increase, buyers can get a sense of how their monthly mortgage payments will change over time.

ARM loans appeal to lots of buyers with different needs. For example, buyers who are only planning to live in their home for a five- or seven-year period may move on before they see their interest rate change. In other instances, first-time buyers who are trying to enter the market may find the lower introductory rate enticing.

Here’s how you can incorporate the advantages of today’s adjustable-rate mortgages into your real estate sales and marketing efforts:

• Educate your sales teams on the details of these loan programs and how they can provide an advantage for some buyers. Answering initial questions in the sales office can change some of the outdated perceptions buyers may have regarding adjustable-rate loans.

• Work with your preferred lender to generate marketing collateral to educate buyers. Think beyond in-office printed materials and consider dipping into digital marketing tools like video content, webinars, and live online Q&A sessions.

• Collaborate with real estate marketing consultants to develop attention-grabbing advertising and sales materials like printed banners, billboard ads, newspaper features, and radio commercials featuring the benefits of a lower introductory interest rate.

Energy efficiency as an advantage

During decades as established real estate marketing consultants for homebuilders, we have seen today’s buyers become acutely aware of their energy and water consumption. Prices for electricity, gas, and water are likely to remain high, so buyers are recognizing the value of efficient designs to protect the planet as well as their pocketbooks.

All California homebuilders are incorporating energy efficiency into their designs under Title 24, but not all are capitalizing on this selling point when communicating with buyers. Detail the water- and energy-efficient designs and products in your new homes and run some sample numbers to show estimated savings projections. This type of concrete comparison helps buyers see how buying a home in your community is a wise financial investment.

Don’t back off communications

Attracting and keeping prospective buyers’ attention is a crucial first step in building a connection with your brand. Don’t let a lull in the market create attrition in the prospect lists you have worked hard to build. A slowing market is a sign to ramp up communications with the people on your interest list. Keep them involved with what’s happening in your communities.

Creative marketing content like virtual home tours, interactive floorplans, and short brand videos keeps buyer interest stoked, even if they’re not ready to commit any time soon. Frequent content releases on digital platforms as well as “in real life” keeps curious buyers engaged with your brand and keeps your communities top of mind when they are ready to take the next step.

Opportunities are all around you

No matter which way the market continues to shift, builders should adjust their sales and marketing strategies to address current buyer hesitations and help buyers envision themselves living the lifestyle your community promises. This means conducting comprehensive market intelligence, tailoring your sales efforts to reflect what is happening in the market today, and working with seasoned real estate marketing consultants who can help you organize, execute, and track your sales strategies.

Flexibility should always be built into your sales process. As the market follows a perpetual ebb and flow, the question is: who will be ready to take advantage of the emerging opportunities?

See how our team of experienced real estate marketing consultants can help you sell more homes faster. Contact The Advantage Group today and let’s start a conversation.

The post A Shifting Market Unlocks New Opportunities appeared first on The Advantage Group.

This concept is a departure from the traditional model employed by most homebuilders: build beautiful homes with the idea of releasing product on a controlled schedule to maximize profit and eventually sell out of inventory.

The BTR model means rentals of single-family homes are now competing more strongly against new home sales, which could pose a threat to homebuilders—especially private regional builders without deep pockets and a wide national reach.

But this new business model may not be as threatening as it seems. Read on to discover emerging advantages for homebuilders in the build-to-rent space.

What’s driving the trend

Knowing what renters are looking for helps homebuilders focus their real estate sales and marketing strategies along with their design choices.Renters today are looking for two things that multi-family complexes struggle to deliver: more space and more privacy. The pandemic has forever changed how we live and work and many people are now acutely aware of space limitations and their close proximity to their neighbors. With multi-generational living also on the rise, renters want bigger homes that can accommodate more people comfortably.

Many renters want the spaciousness and privacy of a single-family home without the major financial outlay of a down payment. The BTR model works well, providing these residents the ability to move into a new home with the accompanying amenities and sense of community.

Opportunities for homebuilders

Though many homebuilders are not ready to develop entire communities around build-to-rent, there are many advantages available under this new structure.

• Try a hybrid model. Setaside a small portion (around 10%) of your inventory to release as rentals. This enables you to get in on the BTR action without making a full commitment to rental communities. 

• Introduce rent-to-own opportunities. Blend the BTR model with traditional real estate sales by dedicating a portion of your inventory as “rent-to-own.” This enables cash-strapped buyers to get their foot in the door of homeownership without having to first save up for an expective down payment.

• Support your area’s affordable housing efforts. Affordable housing is a hot topic throughout California and Nevada as sales and rental costs continue to rise. Building single-family rental homes in welcoming communities provides an alternative to the high-density housing many of today’s renters are looking to leave behind.   

• Take advantage of financial incentives. Depending on your business structure, you may be able to receive federal, state, or local tax credits that apply to affordable housing. These credits can offset your initial investment and bolster your cash flow as you await rental income. Rental inventory also allows homebuilders to ride both the appreciation and depreciation sides of home values, gaining a tax advantage for each.

Update your sales strategies

If you do decide to step into the BTR market, you’ll need to adjust your communications to reflect this new side of your business. This doesn’t mean scrapping your traditional real estate sales and marketing efforts—instead, look at how you can tailor your marketing messaging to appeal to a slightly different demographic.

Here are some messaging strategies to consider when appealing to renters:

• Highlighting your community’s amenities
• Directly comparing the benefits of a single-family home against apartment living
• Emphasizing easy, fast move-in
• Pointing out the lack of a hefty down payment
  

BTR is here to stay

As investors sink billions into build-to-rent communities, all signs point to the fact that this business strategy is not going anywhere any time soon. It’s impossible to tell how much of the new home sales market the BTR business model will affect at such an early stage, but it is a good idea keep close watch as it unfolds.

As seasoned real estate sales and marketing experts, the team at The Advantage Group is

always uncovering critical market intelligence to help builders anticipate change and respond proactively. By opening up to new build-to-rent opportunities early on, homebuilders can track alongside major market shifts, evolving their business models to keep up with the times.

Let our real estate sales and marketing experts help you move new home inventory faster. Contact The Advantage Group today.

The post Build-To-Rent: Threat or Opportunity? appeared first on The Advantage Group.

We talked to Christopher Coates, Director of Market Research at The Advantage Group, to learn more about what home builders may be overlooking.

Q: When it comes to market intelligence, where should builders begin?

A: Target markets are the cornerstone of marketing for home builders. Understanding who your ideal buyer is and what matters to them is extremely important. This influences everything from your messaging to which platforms you use to you connect with buyers to amenities, layouts, and elevations.

Q: What are some of the main differences between buyer profiles?

A: Age delivers huge insight into how to connect with your target audience. Younger buyers are on digital platforms like Instagram, Facebook, and Tiktok. They’re savvy to marketing and want to see fun, frequent video content that highlights the new home features that support the aspirational lifestyle. Older buyers are more responsive to traditional marketing campaigns— things like banners, newspaper ads, and radio advertising.

Q: How can home builders discover demographic information about buyers?

A: Lots of information is part of the public record, so it’s a matter of digging into those records. Census data, school enrollment information, and newspaper articles are good ways to discover how areas are changing.

Q: Does demographic information influence any other choices home builders make?

For home builders, demographic information has importance beyond just marketing. Knowing the profiles of who will be buying homes in a certain area enables builders to incorporate popular design features like single-level floorplans for older buyers or multi-purpose spaces for families with children learning from home.

During the very early stages of design, many of our home builder clients come to us for insight into the layouts, amenities, and materials that are most popular with their target market. Keeping the final sale in mind early on lets home builders incorporate in-demand features from the start.

Q: What should home builders keep in mind about the market as a whole?

A: They need to understand their position in the marketplace and the buyer’s mind. Home builders like Lennar have an “everything’s included (EI)” approach that really connects with their target market and positions them differently from home builders that offer additional options with associated price bumps.

Home builders also need to understand the role they play in their target market’s buyer experience. Luxury home builders might focus on the customizability that resonates with higher-end buyers. Other home builders may choose to focus on affordability, especially if that’s the type of product missing in the area.

Q: What are some opportunities builders tend to overlook?

A:  Busy home builders may not have the time to head into the field to see what the guy on the other side of town is doing. This is where working with dedicated market research teams like The Advantage Group can make a huge difference. We’re out there every day, throughout northern and central California and parts of Nevada, pounding the pavement to see what else is going on in the area and what’s trending for the future.

We tour model homes and talk to developers and sales teams. When you get to see a lot of product, you see what’s successful and what fails to attract buyer interest. Talking to sales teams and developing personal relationships with them helps, too. Many sales teams are upfront about their pricing structure and where they’re successful in terms of the types of amenities offered.

Simply taking the time to aggregate this information and then interpret it can provide a much bigger—and clearer—picture of where a home builder should focus and where they can avoid wasting time and money.

Q: What marketing mistakes do you see home builders make?

A: Not recognizing how emotional the buying process is. We are extremely data-driven at The Advantage Group, but we also know that buying a home is an emotional road. Buyers are purchasing more than a home—they’re buying into a lifestyle. Each site is so uniquely different in terms of location, lot size, product type, features, neighborhood, and accessibility to things like shops, schools, and restaurants. All those things influence what is special about each community and need to be communicated to buyers.

Working with an experienced marketing team helps home builders surface what’s unique and exciting about their communities and start to shape that into a narrative that connects with buyers on an emotional level. We help home builders sharpen their message about what’s different about their communities to communicate the story behind the development.

Q: What can home builders do differently to improve their marketing processes?

A: Start taking advantage of technology. Technology has transformed so many aspects of marketing for home builders. Everything from drone footage to show buyers the progress of their community to connecting geographically dispersed teams through Zoom calls to being able to screen share reports or do a live video when walking through a new home. These technologies help every member of the development, marketing, and sales teams avoid miscommunications and get up to speed faster.

Additionally, home builders who haven’t done so already should start a conversation with real estate sales and marketing consultants like The Advantage Group. This is what we do all day, every day. Not only are we paying attention to what’s happening right now and what’s just over the horizon, we have decades of experience fine-tuning tactics to gather accurate market intelligence quickly. Partnering with sales and marketing experts is an extremely effective way for home builders to start connecting with the right buyers right away.

At the end of the day, it’s about generating as much useful information as possible. Whether home builders do it in-house or partner with an outside real estate sales and market intelligence team, what matters is getting the best information and putting it to good use.

Ready to access a deeper level of market intelligence? Contact our team of real estate marketing experts today.

The post Market Intelligence: What You Don’t Know Can Hurt You appeared first on The Advantage Group.

In our decades providing real estate sales consulting for home builders throughout California and Nevada, we’ve seen the incredible power of sales teams that are firing on all cylinders.

In this article, we sat down with Ryan Coates, Vice President of The Advantage Group, to discover how to keep real estate sales agents thriving and making money.

Q: What personality type makes the best real estate sales agent?

A: Generally, there are two types of people who succeed in sales: people who are very detail-oriented and people who are extremely outgoing. Both types of sales agents are essential for an effective sales team. The super analytical types are fantastic at managing details, which is reassuring to buyers. The other types are more personable, creating that “warm and fuzzy” feeling buyers also love.

Q: What’s the number one thing to remember when it comes to keeping sales agents engaged?

A: Agents should feel like they’re part of the bigger picture of the company’s success—because they are. They need to know you understand and care about their experience. I like to get out in the field, interacting with our agents on a weekly basis at their sales office. I also call my sales teams daily to check in. I want to make sure they feel supported and that comes from making myself available. It’s important to let agents know we’re looking out for them.

Q: How can a company set its sales teams up for success?

A: Adequate training is extremely important. Training manuals are good, but as real estate sales consulting experts, we’ve found that actual practice and observation are great for fine-tuning.

At The Advantage Group, we spend a lot of time taking an agent through the full experience of closing deals. This usually involves two stages of training, both equally important. The first stage includes things that are specific to the new home sales transaction, like how to manage contract documents. We then focus on the core elements of customer connection: greeting customers, listening to their needs, determining the customer’s interests, etc. Sharpening both “hard” and “soft” skills are part of an effective sales process and sets agents up for success.

Q: What about sales agents who have been with the company for a while?

A: These people have already developed an effective selling style, so for them, it’s all about creating specific goals and showing them a clear trajectory for professional growth. Great real estate sales agents are naturally ambitious people. They thrive on accomplishment. Whether it’s reaching a certain income amount, number of quarterly closings, or hitting high marks on customer feedback surveys, goals can be unique to each sales team.

Builders also need to provide opportunities for sales agents to advance. This can be through promotions, increased salary/commissions, or both. If the company hasn’t established career paths for its sales team, it’s only a matter of time before sales agents start to look for opportunities elsewhere.

Q: What are some practical tactics builders can use to maintain their sales team’s enthusiasm?

A: Games and prizes are great. We’ve found that sales agents really appreciate being able to see their achievements. Injecting a little healthy competition into the workplace usually gets sales teams fired up, too.

We’ve done things like creating a large cardboard football field around Superbowl time or a horse race during the Kentucky Derby. As each agent or team progressed, their little helmet or horse moved forward toward the end. Winners received a small cash prize. Agents were checking daily to see how close their “team” was to winning.

Q: Are there ways to recognize great sales agents outside of the company?

A: Submitting agents for consideration for industry sales awards is a great way to provide them with recognition beyond your four walls. The North State Building Industry Association (NSBIA) presents annual Major Achievements in Merchandising (MAME) Awards for things like Rookie Salesperson of the Year and Sales Team of the Year. These awards are a great way to provide acknowledgment on a public stage.

Q: How can builders prevent sales agents from feeling isolated?

A: Camaraderie and team building are key. Keeping agents connected to each other and the rest of the team provides important social interaction with peers that helps build close-knit teams. We do things like after-work mixers, family bowling nights, and other activities to let our agents blow off some steam and get to know one another more personally. Real estate sales is all about building personal relationships. Those strong relationships start inside the company.

Q: How can builders get an accurate assessment of how their sales teams are performing?

A: Customer surveys are essential. There’s only so much you can see from inside the company. But buyers will always let you know how their experience went—the good and the bad. When one of our agents receives positive feedback, we’re quick to recognize their great job and encourage them to keep up the good work. Less than stellar reviews are an opportunity to speak with the agent and see what resources we can provide to help them perform better.

Q: Any final advice for builders to build strong sales teams?

A: Don’t be afraid to turn to real estate sales consulting experts for support. Busy builders often don’t have the time to dedicate to their sales team’s professional development. Working with dedicated sales and marketing teams from an experienced partner like The Advantage Group

lets builders focus on building while our proven training and support make their sales team stand out from the competition.

Strengthen your sales team with experienced new home sales agents. Contact The Advantage Group today to see how we can help.

The post How to Keep Real Estate Sales Teams Thriving appeared first on The Advantage Group.

A successful real estate sales and marketing strategy is about more than closing the sale. It’s about making buyers feel engaged, inspired, and confident about their decisions during every stage of the process. But buyers get stressed when they see their completion timelines edging further into the future—even if those delays are beyond anyone’s control.

Here are some proven tactics to keep buyers happy while they’re waiting for their keys.

Keep homebuyers informed

Buyers get antsy when they haven’t heard from their sales agent recently. Be proactive about providing comprehensive status reports, detailing specifics like which stage of construction you’re in, what has been already completed, and what’s coming next. Be as specific as possible about expected timelines and transparent about reasons behind any delays. Buyers who understand what’s happening accept delays with more understanding.

Use multiple means of communication

Buyers may think they are being deprioritized when they may have simply overlooked communications from your sales office. Best practices for real estate sales and marketing today include multiple methods of outreach. Phone calls, voice messages, text messages, email blasts, buyer portals, and company newsletters are all great ways to reach busy or distracted buyers who may not receive communications issued via a single method. For particularly important communications, request that buyers reply with a message acknowledging receipt.  

Share various types of media

Don’t limit your company’s newsletter or other communications to verbal or written descriptions only. Including pictures and video enables buyers to see firsthand what’s happening. Buyers who don’t live nearby (or those who can’t stop by the construction site) will appreciate the ability to lay eyes on the status of their new home’s completion.

Provide education

Even if a buyer has purchased a home in the past, unless they are a builder themselves, they likely lack a detailed understanding of what goes into the building process. Explain how systems in the home are connected and how delays in one area can slow progress elsewhere. Feel free to extend your education efforts beyond the building process, too. Provide a range of information, such as what to expect during closing, how their new home’s solar panels work, what types of insurance they may require, and information about their new neighborhood. The more knowledge buyers have, the more empowered they feel.

Create and share inspiring content

Every successful real estate marketing strategy involves helping buyers envision themselves in their new homes. Keep buyers excited about what’s to come by creating original content or sharing quality content in your company’s new buyer newsletter or through email blasts. Some suggestions include decorating tips, landscaping suggestions, recipes, and interviews with new homeowners.

Reach out first

It goes without saying that sales agents should respond promptly to emails, phone calls, and texts from buyers. But taking the time to check in—without a specific reason—strengthens the personal connection with the sales agent, and by extension, their relationship with your company. Proactively contacting buyers with good news or just to check in also reassures buyers that they’re not only hearing from sales agents when things go wrong.  

Send a small gift

Though it’s impossible to make up for every delay that may arise during construction, a thoughtful gesture goes a long way with impatient buyers. Gift cards to local coffee shops or restaurants, tickets to movies, and small boxes of chocolates or other consumables are economical investments that let buyers know you’re thinking of them. If possible, include a short, hand-written note from the sales agent to add a personal touch.

Create an online portal

Buyers feel empowered when they’re able to access their own information without needing to await a call back from their sales agent. If your company doesn’t have one already, work with a web developer or real estate sales and marketing partner to create an online portal where buyers can review updates, access documents, and see the progress of their community’s construction.

Keep sales partners in the loop

Present a unified front by keeping the lender and title company well informed on the status of completion. Loop their representatives into all communications with buyers and ask that they do the same with your sales agents. Frequent notifications and status updates reduce time-consuming back-and-forth and avoid communication mix-ups that make buyers nervous.  

Genuine empathy always wins

The key to keeping buyers happy while they wait is to build a strong relationship during what can be a difficult time. For many builders, working with experienced real estate sales and marketing partners is a way to instantly upgrade the sales process and provide more attention to anxious buyers.

Whether you handle sales internally or partner with experts, remember to keep the buyer’s perspective top-of-mind, treating them with care and respect as they endure what may feel like a long road toward closing on their new home.

Contact the experts at The Advantage Group today to take your sales experience to the next level.

The post How to Keep Buyers Happy…While They Wait appeared first on The Advantage Group.

Savvy builders are constantly evolving their designs and real estate sales and marketing processes to resonate with homebuyers.

So, what do today’s buyers really want? Read on to find out.

Customization

Though their new home may be part of a planned community, buyers want as much customization as possible. Builders must provide options that enable buyers to make selections without slowing down the builder’s ability to deliver a finished product on time. Luxury homes generally allow for more options, since these buyers expect a high level of input at this price point. However, builders can create the same experience in more affordable builds by offering a limited set of attractive options with confirmed availability from vendors.

Larger lots

Because the COVID-19 pandemic kept people at home for so long, many homeowners took on a new appreciation for their outdoor spaces. Today’s homebuyers want big yards and lots of space to play. Builders must carefully consider the layout of each lot to deliver an expansive feeling in a limited footprint.

Some builders may not have the luxury of offering spacious yards, especially as the profitability squeeze gets tighter due to high prices for undeveloped land. In these cases, builders should pay careful attention to the community’s layout, incorporating recreation spaces into common areas that reflect popular preferences like outdoor entertainment, interaction with nature, and spending time with pets.

Flexible indoor spaces

Work-from-home, homeschooling, and the uptick in multi-generational living are all major shifts that have happened within the last few years. Buyers want their indoor spaces to do double duty whenever possible. They’re looking for additional home office space or quiet areas for kids to complete schoolwork. As older and younger generations mix, builders are incorporating more single-level and open floor-plan options into their designs to serve the needs of this growing demographic.

Frequent communication

The sale process can be long and frustrating for buyers, especially due to materials delays and other hiccups caused by supply chain disruptions. Buyers appreciate being kept in the loop every step of the way. Real estate sales teams should reach out proactively to share updates with buyers via newsletters, email blasts, text messages, and good old-fashioned telephone calls. Not only does more information calm anxious buyers, but personalized communication also strengthens the long-term relationship between builder and buyer.

Energy efficiency

Buyers are paying closer attention to the benefits they’ll reap by owning an energy-efficient home. California builders are already operating under Title 24 energy efficiency standards but going above and beyond what is required by law is a major selling point for today’s buyers. We recommend highlighting the advantages of energy efficiency in your real estate marketing efforts. Buyers will appreciate the education on how their new home is saving them money as well as saving the planet.

To learn what buyers want, just ask

Buyers are eager to share what they love—and what they don’t like. Too many builders lack a process for soliciting and incorporating buyer feedback, so they lose out to competitors who take the time to listen.

At The Advantage Group, buyer feedback drives much of our real estate sales and marketing decision-making. By issuing regular surveys to buyers throughout the sales process, we can provide more effective guidance to builders on everything from style trends to what messaging resonates with buyers. This insight is invaluable. Without accurate feedback from buyers, builders are flying blind.

Contact our real estate sales and marketing experts to learn how you can gain an advantage with homebuyers.

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However, design style, amenities offerings, and marketing efforts all heavily impact success rates. Builders must tailor their designs and sales processes to meet the demands of these types of buyers—or risk falling behind.

The market for luxury is growing

Options are king with today’s luxury homebuyer and can yield high margins for builders. During our decades of real estate sales consulting, we have observed that success in the luxury market requires builders to maintain a portfolio of high-end features ready to offer buyers. However, homebuilders must contend with the possible impact on delivery. Lack of availability and long wait times mean some materials and amenities options may open the door to delays.

Specialty materials delight buyers but can cause problems for builders if vendors fail to deliver. Builders should thoroughly vet all vendors to ensure they have specific materials on-hand and can deliver on time. Additionally, we encourage builders to maintain a suite of equally attractive alternate choices in case the original offerings are subject to limited availability or significant delays.

Luxury buyer messaging: “Live the Dream”

Luxury buyers are evaluating more than each home’s features; they are also looking closely at the type of lifestyle offered by the neighborhood and community. It’s up to builders to share the story of upscale elegance at every touchpoint.

Experienced sales agents encourage buyers to envision themselves in this new level of luxury by demonstrating models, products, and features in high-end presentations. The focus should always remain on conveying a sense of grandeur and sophistication.

Sales teams must carefully consider how the story unfolds to buyers. More than simply talking about the home, luxury home sales messaging influences the full experience, including the community’s entrance, collateral images, signage, common areas, and amenities—even the community’s name. Attention to these elements should not be restricted to the last leg of the sales process. Working with experienced real estate sales consulting partners helps builders take a holistic approach to design and marketing from the outset.

Affordable homes are in high demand

First-time buyers and those with limited budgets are also a key target audience for today’s builders. Tasked with maximizing a limited area, builders are utilizing multi-story designs, including shared common areas instead of larger individual yards, and thinking more strategically about community layout. Each of these choices protects profitability while delivering homes that enable first-time buyers to enter the market.

Options are a key selling point for these homes, too, but keeping costs down requires builders to offer a streamlined set of choices. It’s actually the best of both worlds: buyers appreciate the ability to customize their homes—but proceeding with known materials and vendors enables builders to reduce the risk of materials delays that can extend the contract period and affect delivery times.

Working with experienced partners can provide an advantage to builders during both design and sales. Real estate sales consultants are in close contact with buyers while also monitoring industry trends. Their insight helps builders focus on the amenities, features, layouts, and designs in high demand today.

Marketing to first-time buyers: “Build Your Future”

The sales narrative is also crucial when selling affordable housing. Marketing to these buyers is more about the American Dream, focusing on family, community-building, and investment in the future.

First-time buyers are excited about the process, but often require more education than experienced buyers. Sales agents should exhibit patience and tolerance for buyers who may have questions about financing tools, interest deductibility, and need detailed explanations of what to expect during construction and closing.

Marketing messaging for these buyers tends to be cleaner, more informational, and more youthful. A sharp presentation is key. They will likely have many questions and want to be shown how their choices can impact delivery and their new home’s value. Frequent communication is crucial—but for different reasons than the luxury buyer. Because they have less experience, first-time buyers often want maximum visibility into the construction and delivery process. Working with a real estate sales team that prioritizes communication will be essential.

Begin with the end in mind

The end goal for every builder is to deliver beautiful homes and make sure they sell quickly. Choices made at the beginning of a project can support or impede these efforts. Consulting with experienced real estate sales partners helps builders avoid wasting time or resources.

At The Advantage Group, we provide insight and expertise at every stage, but builders often begin collaboration well before breaking ground. Our deep experience in market trends, land analysis, buyer expectations, and competitor offerings means we provide insight that informs builders’ choices. Our history in real estate sales consulting creates an instant advantage to newer builders looking to secure a foothold in the market. Even legacy building companies turn to us for a fresh perspective on updating their image and offerings to achieve a higher market share.

As every builder knows, the real estate market is never static. But paying attention to what types of homes are in highest demand and using these insights to guide every phase of development keeps builders ahead of a shifting landscape and out in front of competitors.

Our experienced real estate sales teams are ready to help you take advantage of more marketplace opportunities. Contact The Advantage Group today to start a conversation.

The post Is the Market Shifting? (And Are You Ready?) appeared first on The Advantage Group.

Per the U.S. Census Bureau’s Monthly New Residential Construction report, 1.2 million new residential units were completed in January 2022 alone. The time is right to charge ahead.

Here are some of today’s top opportunities for builders—as well as a few timely risks to avoid.

Opportunity: Skyrocketing demand

The biggest opportunity for builders today is that demand remains high. Buyers are looking for a change and ready to invest. Though demand from buyers is high, competition among builders is high, too.
Builders have lots on their plates as they juggle delivery demands currently impacted by supply chain disruptions and labor shortages. Consulting with real estate sales and marketing experts can help builders stay ahead of the curve by keeping an eye on the elements that affect delivery, compromise buyer satisfaction, and can negatively impact price points.

Opportunity: Affordable housing

As demand rises, so do prices, and middle-market homebuyers are feeling the squeeze. Builders can serve first-time and middle-market buyers by increasing density. Two- and three-story homes are becoming more common. Adjusting the layout to homes and communities can increase buildable space without compromising the feeling the community is trying to achieve. Building a few additional units in the same footprint improves profitability. When it comes to affordable housing, minor changes can have a major impact down the line.

Opportunity: Luxury

On the other end of the spectrum, the demand for luxury is also rising. We encourage builders to diversify their portfolios even further to include more luxury construction. Consulting with real estate sales and marketing experts can help builders who are newly entering the luxury market identify the market’s most in-demand amenities and those which command a higher price point.

Risk: Releasing product too soon

Every builder has started to feel the impact of supply chain disruptions and worker shortages on their ability to deliver product on time. Delays impact buyers and builders must keep this in mind when developing their overall real estate sales and marketing strategy. Releasing product too soon can incur additional costs (ex. rising lumber prices between contract signing and close). On the other hand, months-long delays increase buyer anxiety and frustration. Working hand in hand with real estate sales teams from the start can establish a more accurate timeline, help set buyer expectations, and achieve a better performance target.

Risk: Lot availability

Due to the construction boom, builders are facing a shortage of finished lots. Combined with the demand for housing, this can create complications for acquiring land for upcoming projects. California has always been tight, but we’re seeing this trend stretch into less competitive markets like Reno. Now, more than ever, builders must be looking a few years ahead and remain vigilant about securing lots today for future builds.

Partner with real estate sales and marketing professionals

Sales teams have “boots on the ground” experience with buyers, so they know what buyers are looking for and what are some of their biggest challenges. Working with experienced real estate sales and marketing consultants brings in a fresh set of eyes and frees up builders to focus on completing projects, instead of managing buyer expectations. This expertise keeps buyers in contract for shorter periods and increases builder efficiency. Here are some of the ways experienced real estate sales consultants provide an advantage for builders:

• Create detailed sales strategies to balance the demand and sales process
• Land analysis and development studies to determine which location, density, and layout will yield the highest profit
• Plan review and recommendations (trending design features, popular layouts, in-demand amenities, community layout)
• Tailored marketing communications to appeal to luxury or middle-market buyers
• Unbiased perspective and marketing knowledge

2022 is off to a strong start. Builders have the chance to maintain momentum throughout the year if they protect themselves from delivery pitfalls and are ready to take advantage of all of today’s emerging opportunities.

Strengthen your strategies to sell more homes. Our experienced real estate sales and marketing teams are ready to help.

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