There are a lot of factors that go in to making home builders successful. Creating quality products at the best prices. Providing the newest top-notch and even trendy amenities that home buyers seek, like the stainless steel appliances and granite counters we all saw at every price point for the past decade. The most successful ones are fair, honest, communicative and efficient.
“Builder confidence in the market for newly-built single-family homes jumped seven points to a level of 70 on the NAHB/Wells Fargo Housing Market Index (HMI). This is the highest reading since July 2005.”
Builder Confidence Closes Year on a High Note, National Association of Home Builders Discusses Economics and Housing Policy
One could presume that the future looks bright for home builders. But what will aid builders in their successes? Many rely on being at the right place, at the right time. However, there are many entities with whom a builder could partner to aid in their success.
Some join forces with lenders, sales people, decorators and even closet design specialists. Perhaps a painter or plumber might be practical. But in reality, most builders choose to align themselves with only a small handful of other professionals.
In-house sales team
In a recent interview with a longtime builder in New England, he shared that he has a lot of respect for the real estate developer who has his own in-house salesperson. The benefit to the developers is that they receive existing-house listings before the properties go on the market. This creates a win-win for them.
For the successful developer putting out 12 homes per year, it makes perfect sense to have an in-house salesperson for both dedication as well as extra income for the firm. For those who put out six or so, it is more practical from a management and fiscal perspective to partner-up with a salesperson who is loyal and familiar with the product, location and amenities. To connect with prospective buyers it is critical they understand the nuances of the end-product.
Bank on it
Many new construction properties share signage with banks who are often the financial backers of the project. When partnering with a lender, it’s beneficial to the builder for their prospective buyers to have priority and honesty in the underwriting department. This relationship saves a lot of time and minimizes a great deal of risk.
All too often a buyer is toyed with and strung along for weeks, only to find the bank unable to lend. When these alliances are created, they aid in streamlining an already complicated process and keep all the parties involved in the transaction connected with one another.
“The increase in market confidence follows the November election results, increasing hopes among home builders and other stakeholders in the residential construction industry that the incoming administration will reduce costly regulatory burdens, particularly for small businesses.” There are mixed views of the recent housing reports, as some areas of the country have seen significant growth, while others are growing at a much slower pace.
Setting yourself apart
If home builders in any market want to stand apart from the rest, developing a strong alliance with a team of supporting professionals across industries will be beneficial to creating desirable, affordable high-quality products. The builder interviewed for this post felt that the homes that actually make it to the open market need to capture the attention of the local buyers.
What better way to reach a broad spectrum of prospects than by using your own network of professionals? It is a powerful statement to show an alliance with a lender, sales and marketing specialist, decorator, or other notable colleague who can stand beside your products and vouch for your integrity.
Continue to set yourself apart by using rewards and gifts that work for your audience.