Published Date 5/5/2022
Every once in a while, it’s fun to check in on the industry that gives everyone connected to real estate a livelihood — homebuilding. That old movie line, “Build it and they will come” has never been truer than now — a time when a global pandemic, supply chain challenges, and a severe shortage of homes to buy are controlling the American Dream. The homebuilding industry is also responsible for thousands of other industries thriving as well, so it’s time to revisit the importance of them, as well as how they are preparing themselves to help save our (confusing) economy.
BuilderOnline shares a piece by Constellation Homebuilder Systems, a developer of software solutions for home builders, developers, and trades. Constellation reports that several internal technology experts and industry leaders have identified three areas where buyer behavior is changing. The first is probably the most significant difference between buying a home ten years ago and now — the ability to buy online. While online sales is now being embraced in the resale arena, homebuilders have been slow to find ways to make homebuyers more comfortable making one of their most significant purchases online.
The beautiful thing about buyers starting their new construction home journey online is options — literally hundreds of them. From viewing plans to signing digital contracts and placing home deposits, it’s a huge draw to the modern buyer. “They’re a convenient solution for customers who are far from model homes, nervous about in-person meetings, or just prefer to make a big decision privately,” says Constellation. “For builders, it can mean quicker sales to a wider pool of potential buyers, while reducing the burden on their model homes and staff.”
“Almost all of the production builders we work with have some form of “buy online” function on their road map,” says Constellation’s VP, Bob Swainhart. “It may be an online tool to reserve a lot for 24 hours, the ability to completely execute a sales agreement, or something in between—but all of them agree it is going to be critical to their business moving forward.”
3D technology is rising to the occasion for buying a new home online. Just as HGTV hosts show computer 3D renovations they are about to do to an existing home, recent advances in virtual reality have made it easier than ever to show buyers 2D and 3D visualizations of communities, their potential new homes, and interior renderings based on option selections. “These lifelike visualizations help buyers feel more connected to their home, allowing them to see exactly how their choices will impact the finished product,” they add.
Unique. Immersive. Transparent. These are key advantages for web-based (virtual) sales, and builders are finally beginning to pay attention. And builders are beginning to understand that home buyers and all related consumers will continue to expect these new and differentiated experiences from them as part of their shopping and home buying journey. These visualizations permit builders to easily show their potential buyers the value of potential upgrades — excellent elements of both pre-sale as well as post-sale value, and software companies like Constellation are betting on this game-changing technology being on track to become a staple for home builders and buyers over the next few years.
But what about AFTER the sale? Again, there are solutions to help newly established new home buyers feel comfortable with their purchase. “Especially now, the construction process can be tough on buyers,” says BUILDER. “In today’s challenging environment it’s essential that builders continue to offer support to their customers post-possession.” They go on to explain how an effective homeowner portal can provide buyers with critical information on construction progress, warranties, product manuals, maintenance schedules, and more. New owners can submit questions or warranty requests directly and get status updates on any follow-up required instead of staying on the phone hoping a customer service or warranty rep will pick up. In this virtual day and age, buyers should expect tools that provide this seamless support from their builders, who have opportunities to become household names by making a new home purchase something akin to an adventure.
Says one home builder that uses this technology, “Providing a homeowner portal for all of our developments ensures that we manage all of our homeowners’ requests efficiently and accurately. Storing all of our homeowner communication, supporting documents, warranty items, and more in one place gives us and our homeowners peace of mind, too.”
Whenever we see experts trying to make sense of today’s real estate market — issues with affordability, interest rates, and lack of inventory — it always seems to come down to the one thing that stirs the soup — new homes. You can’t have a resale market without someone having bought a new home in the first place. A huge segment of the economy relies on homebuilders’ ability to build fast enough to keep up with demand. And technology is poised to help with our homebuilding (and buying) future.
Builderonline, TBWS
