The Key to Converting Casual Curiosity into Customers

Understanding what factors influence a potential homeowner’s decision to buy is important. Taking action on this knowledge, however, is key to a builder’s success.

For two years, Builders Digital Experience researched home buyers and how they make their decisions. The study revealed what they really thought about resale and new construction, as well as what key elements shoppers looked for when considering a home purchase.

Based on this expansive research, they found that 53% of home shoppers just starting their search favored new construction. In the past year, this number has increased to 56%. With a solid interest in new home construction, builders everywhere are starting to take advantage of this trend. Read on for the top five tips for converting interested home shoppers into new-home buyers.

This family just purchased their new home!

KEEP IN REGULAR CONTACT with potential buyers.

While the interest is there for new-home construction, the buying cycle isn’t getting shorter — in fact, it’s getting longer. It takes more than nine months for two-thirds of the home shoppers to make a decision. This increased buying cycle illustrates the importance of lead nurturing. When planning your marketing efforts, ensure you have a steady stream of communication with your target audience.

HIGHLIGHT top purchase considerations in your marketing materials.

The study also revealed a few key elements home buyers look for when they’re considering making a purchase. When creating your marketing materials, highlight these top purchase considerations:

• High-quality home construction
• Safe neighborhoods
• Floor plans that include larger gathering rooms
• Low maintenance costs

PROVIDE real estate agents with the information they need.

The study also found that close to 50% of U.S. real estate agents prefer selling new construction. More importantly, it revealed these agents often find it hard to learn about new inventories and promotions. To take better advantage of the interest real estate agents have in showing new homes, you should:

• Keep your listings up to date.
• Publish your commission policy clearly on your website, as well as on your listings.
• Include buyer registration guidelines.
• List standard commission percentages.

BUILD TRUST with potential buyers.

When reviewing recent home buyers, the study found that 34% of individuals who preferred new construction ended up choosing a resale. Why are we losing this interested group of home buyers? It comes down to trust. New-home buyers have concerns about the construction quality, safety of the area and cost. A new-home purchase is the largest financial decision people make. To instill confidence in their decision, consider highlighting the following in your marketing efforts:

• Your 10-year new-home structural warranty
• Building certifications you have
• Standards you follow when building new homes, such as Energy Star, LEED and local building codes
• Any nationally recognized professional titles you hold and your memberships with professional associations

Not only should you include these on your website, but your website should also feature a section on building quality. Highlight the following on this page:

• Your company’s commitment to high-quality construction
• Warranty information
• Safety features
• Product lines used in your homes

EDUCATE your target audience.

When potential buyers know what to expect, they are less afraid of the new-home construction process. Educate your audience with a Frequently Asked Questions section on your website. This section should cover:

• The value of a 10-year warranty and why new-home buyers should want one from their builder
• Your building process
• What to expect when building a new home with your company
• Local building codes and requirements

If you’re not already providing a 10-year structural warranty on your new-home builds, you’re missing a key selling point. To learn more about how structural warranties can benefit your business, please contact American eBuilder today.