Smaller Builder Part 2: Take Advantage of Knowing Your Ground

BuilderOnLine Talks About How Smaller Builders Can Prosper

Frank Anton had another great BuilderOnLine article talking about smaller builders; you can read it here.

Gear Up Your CRM Reach!

His theme: many smaller builders survived the downturn, they've prospered and can continue to do so.

But, Anton suggests, there are 3 keys to ongoing success and smaller builders should  sharpen their focus on these critical items. Our last Solutions Blog talked about #1: Actionable Customer Service.

Maximize Being at Ground Zero!

Anton reminds: Remember that knowing the ground is a decisive factor not only in warfare but in homebuilding, as well.

Are there actionable possibilities, here, as well?  There are many but we'll focus on sales team actionables to start:

• Gear-up your CRM software with a focus on local co-op agents: Get creative, make a Taco Tuesday event in the sales center and raffle off a Margarita basket! Co-op agents in many areas are responsible for over 50% of sales traffic.
• Fine-tune your local agent reach: We've talked about demographically-focused agents (see an earlier Blog) -- they develop groups of interested home shoppers that are always available. Try tapping into several of those groups.
• Keep up your reminder emails: There's a tendency to think: well, I emailed those home shoppers already...what else can I do? IBS2019 speakers reminded us (and there's plenty of articles about this, as well): one time isn't enough! Two or three aren't either! Develop a set of focused emails and create a campaign for ongoing interaction.

Market Your Ground!

Your Team is on the ground: highlight what they know!

One thing we've learned in the 10 years of providing interactive touchscreen kiosks: home shoppers want to know more about the location! 

CPS SalesTouch provides an engaging way to tell your geographic story and we encourage builders to include items that go beyond the basics: the local craft store, interesting museum, fun restaurant.

Go the extra step and suggest a popular appetizer (one client highlighted a Gotta Try: for each restaurant!) or highlight what makes a particular recreation location appealing (is it the great fishing, the sandy beach or terrific mounting bike trails?).

Reach out and let your home shopper know what's particularly interesting around your community because your team is on the ground and knows it! Your team knows the area so they're able to highlight the local restaurants, unique shopping spots, great recreation areas..everything that helps your community stand out!

Remember: home shopping can be stressful because of the fear of the unknown.  You're building a good product and you want your buyers to know that you care about them. Let your local, on the ground, knowledge help mitigate the stress!

Interested in finding out how you can put some of these CRM and touchscreen kiosk actionables to work for you? Contact us to schedule a one-on-one demo so we can show you!

Builders: Smaller in size? Add Focus to Actionable Customer Service

Smaller Means You Can Be More Nimble

Recently, there's a great Frank Anton article in Builderonline: Three Ways Small Home Builders Can Be Big Winners --  it's worth reviewing; you can read it here.

Anton notes he's "big" on stats & trends -- and in the 45 years he's been around the the housing business, he's usually been on the right side of predictions.  One he missed: how large the "majors" would become.

But, he says, smaller builders and those in smaller markets are in a great position. They're not occupying the same "space" as the NYSE builders.

Smaller Allows You to Focus on Personalized Customer Service

Anton suggests smaller builders have an opportunity but.. they need to focus on key metrics and one of the most critical is customer service. And, to be honest, it is one of the most controllable!

He goes a step further and suggests thinking of the process as concierge service!

SST is a Preference for Many

SST (that's Self Service Technology) provides smaller builders with a manageable way to connect with home shoppers and buyers -- and the price tag is reasonable!

Self-service hasn't always had the best of reputations. However,  attitudes, preferences and expectations change quickly. One reason is changing demographics; another is technology.

Self-service is one of those quickly evolving expectations.  Today, self-service is not only a solution but a preference for many -- regardless of age. 

Use SST as Your Concierge

What? How can SST (that's self service, isn't it??) provide concierge-level service to home shoppers and buyers? 

Your customers want fast and concise information. Communication doesn't have to mean conversation! They're also interested in information that's tailored to their specific situation: that's personalization! It adds up to a level of customer service that's actionable and personable.

Take advantage of technology to facilitate delivery of the types of information that will make your customers feel your attention!

SST Delivers Information Quickly, Concisely and When Requested

What sorts of personalized information can technology provide in this concierge service idea? Here are a couple to consider:

• Online, real-time sitemaps - Let your home shoppers know the details as to what's available; over 90% are going online so why not provide key info from the get go?
• Construction status updates - How about using your construction software's Portal to deliver weekly "stage of construction" photos?
• Stage of the sale updates - Use your CRM system to deliver automated emails letting your buyers know where they are in your 10-point buying cycle
• Focused Warranty reminders - Setup a schedule using your warranty software for automated email reminders: Fall gutter cleaning, Holiday light tips, Spring lawn advice, Summer air conditioning advice are just a few examples. You might be sending them to multiple individuals but they're offering specific, actionable information that your homebuyers can put to use.

Remember: Referrals are the Most Cost-Effective Source of Traffic

Happy home shoppers and buyers will have you "top of mind" when talking about their home shopping experience!

Interested in finding out more about technology options facilitating this type of concierge service? CPS can help you; contact us to schedule a one-on-one demo and what your customer satisfaction and  referral rate grow!

Builders: Grab Your CRM Tools for Spring Selling Season!

Might be Frightful Outside but..Spring Selling Season is Here!

We have to admit: the weather outside -- whether you're on the East or West Coast -- doesn't exactly encourage getting outside and going home shopping. Even if you're in Las Vegas -- it's snowing!

Take advantage of slower traffic today & get ready for Spring!

But, why not take advantage of the slower traffic and take stock in preparation for your Spring marketing efforts?  We have some ideas to start generating visits to your sales offices and engaging home shoppers once they arrive!

Start Reaching Out to Realtors & Other Neighborhood Sources, Now

There's a great, recent Frank Anton article in BuilderOnLine noting, "Remember that knowing the ground is a decisive factor not only in warfare but  in homebuilding as well."  

Do you know your local Realtor community? Why not get acquainted and start putting together a "Get Ready for Spring" open house and offer a "spa event" raffle for attendees? Or, a "Wine & Cheese" evening with a case of your favorite? Keep the buzz going: don't stop with one event! If you start now (in dreary February), you'll be ahead of 90% of your competition!

Here's where your CRM system can step in and help! Make sure your local Realtors are in their own section so you can easily email and measure your success in terms of visits, home shopper tours and sales.  Not sure how to do this? Let us know: CPS CRM is laser-focused on co-op agent features!

Start Thinking About Demographics, too!

Don't forget: many Realtors focus on specific demographics or groups -- relocations, ethnic or religious groups, 55+ buyers, etc.  Try reaching out to the demographic-centric agents, often.  They always have a group of interested buyers available to visit your community -- provide them with a reason to stop by -- again and again.  CRM will help here, too: establish Rating groups so you can sort through your database and focus on specifics.

Work to Create a Great Buying Experience

You want to be your customer's #1 choice: what can you do to make that happen? First, embrace the idea that home shoppers are visiting today because they're interested in buying one of your homes. In many cases, today!

Next, we'll suggest that it makes sense to start looking at your sales office as a customer does.  What will help you stand apart so the home shopper rates your community #1?

Think about: what are you doing to create a great buying experience? From the minute a prospect drives (or walks) up to your office, they're using all of their senses to evaluate the experience...from smell to sight to touch!  We'll talk about touch in the next Solutions Blog but.. make sure that your "curb appeal" is upfront, clean and appealing!

Followup!

Have you seen the stats? Only 50% of home shoppers hear back from the sales office they visited! Even a simple Thank You! gets you in the top 50%! Think about the value of  an automated & templated followup with a short, cell phone video with a quick tour -- you're in the top 10%!

Do you recall an earlier Solution Blog with Ryan Taft's CRM tips? Take these quieter times to start a top performer habit:

1. Do it!
2. Personalize the Heck Out of It!
3. Be Consistent!

Builders: Get Interactive and Highlight Your Best Features

If you don't show it, you're not going to sell it!

That's a suggestion made by Lauren Shanesy in a recent BuilderOnline article regarding new home features and option/upgrade possibilities.

Step Up and Highlight the Possibilities

Shanesy notes, "Buyers in the market for a new home know what they want - comfort, convenience, and an overall better quality of life for their family."

What they don't know, frequently, is what you offer that will enable them to live that lifestyle!

And, Shanesy says, "Show them how a specific feature is a solution to a need that they have to live better, and they'll invest in those features.

Show These Lifestyle Features -- and You'll See Buyers!

What sort of "lifestyle features" are important to today's homebuyer -- whether Millennial or Boomer? You've no doubt seen many; we'll talk about two here with others to come in future blogs.

Open space layouts are number one! Buyers have moved away from the traditional kitchen, living room and formal dining area layout; instead, informal gathering spaces are the lifestyle of choice. 

This move is across the board -- Millennial, Boomer, Gen-X.

Marc Thee calls describes this as "non-compartmentalized living" and it is all about comfortable living.

One other floorplan-related favorite: pet-friendly living! 81% of a 2017 Animal House: Remodeling Impact study reported that animal-related considerations play a role in evaluating lifestyle environments.

Encourage Exploration

An interactive touchscreen presentation provides an introduction into lifestyle possibilities as soon as the home shopper walks into your door. Today's buyer is used to self service; 90% have already started exploring via your website. Today's home shopper is interested in and feels comfortable exploring visually engaging content. Encourage discovery!

Buyers want to know how floorplans work -- how they'll encourage comfortable living. Take a look at the CPS SalesTouch presentation above - interested in adding an outdoor kitchen? How about making the family room cozier by adding a fireplace?

Let your home shopper dream -- and create their new home! And, there's a drag 'n drop furniture feature to zero in on how this dream will live!

Visuals Tell the Lifestyle Story!

Remember the interest in pet amenities? Why not provide some visual focus to capture interest in  a pet-friendly neighborhood? 

Here's your opportunity to incorporate storytelling into your home shopper's journey!

Builders: Do You Share These Pain Points?

Interesting recent BuilderOnline article by John McManus noting that the benefits of the current recovery in homebuilding appear slanted towards the very large, production homebuilders.

CPS FieldCollaborate:
Cycle-time Improvements Start Quickly

Market Gains Aren't Equal Across the Builder Landscape

Today, smaller builders, says McManus, are working harder and have a bunch of "math basics" working against them.  Larger builders are able to optimize finance structures as well as relationships with land sellers, vendors and distribution networks.

In many cases, the result, for smaller builders, is a profit squeeze. Labor and material costs are increasing and builders report usable lots aren't as available and are more expensive.

Technology Investment as a Tool

Are these some of your pain points? There's a few more: McManus goes on to say that many of the "smaller builder positives" such as local land knowledge, long-standing vendor relationships and local homeowner referrals don't hold as much sway as previously.  And, there is the Millennial home buyer with all sorts of different objectives, priorities and shopping patterns.

Add to that, larger builders have invested in sales, marketing and operations-focused technology -- and the results are making for a much more competitive marketplace.

Interactive Technology lets you eliminate static displays

Dial-up Your Motivation to Locate Solutions

One solution, McManus suggests, is locating capital partners to achieve better margins. That's certainly an option for some.

Another is reviewing and evaluating current operations. Are you still operating with pen/pencil on the operations side? There are relatively inexpensive, easy-to-use construction management software products such as CPS' 2018 Constructech award-winning, cloud-based FieldCollaborate that can be implemented quickly and start paying off in decreased cycle times and increased communications with vendors and buyers. Buyer referrals still resonate -- grab them as a result of technology use! Available anywhere/anytime for field managers, vendors, home buyers, corporate users.

Take the opportunity to examine how well you are telling your home shopper's story, as well. Step away from tired, static displays and utilize an interactive presentation -- consider an iPad or Surface tablet  if a larger display isn't feasible.

Upgraded marketing tools create an environment appealing to the ever-growing Millennial buyer and responding to their need for new ideas, designs and uses -- and, interactive technology is the way they're used to purchasing.  Adding interactive technology doesn't need to be an incremental increase in cost -- you're able to eliminate the wall-mounted floorplans and pre-printed brochures with products such as CPS' SalesTouch. 

Builders: Using Software to Help Ease Margin Pressure

Are you a homebuilder focused on the entry-level and first-time home buyer market? That portion of the new home market is hot -- and the Millennial home shopper is more focused on purchasing than ever before!

Are you experiencing price increases on basic materials? How about difficulty in obtaining labor -- especially in critical trades? Labor shortages lead to price increases -- and these factors mean you're seeing margins being squeezed.

Now is a good time to focus on Operational Excellence

Recently, John McManus had a great article in BuilderOnline. McManus notes there's an opportunity today to motivate apartment dwellers to purchase homes. Home shoppers prefer new -- and apartment dwellers don't need to sell their current home so there are fewer strings attached to the purchase.

But, these buyers are at the first-time, entry level price point so price increases on the builder side indicate a need to be extra focused on what could be considered controllable costs to maintain margins. McManus notes builders are "doubling down" on items under their control such as construction cycles and workflows.

Construction Scheduling Offers an Effective Management Tool

Cycle time doesn't live in a vacuum -- and can't be determined or measured in the abstract, either. Do you have a published schedule -- do you track progress against it? Does everyone look at the same schedule or are there multiples floating around within the organization? If so, there's where inefficiencies multiply!

If there's one schedule, not only can you measure cycle time but you're able to provide consistent, reliable schedules to your vendors. That's a win/win as your vendors can rely on your schedule to book their crews. That lets your vendors get and stay efficient.

Construction scheduling software will help you develop the tools so there's only one schedule (for everyone -- within and outside the organization). Not only can you track and measure against it but..your vendors will have easy access to it and can rely on it.

CPS FieldCollaborate: Award-winning Construction Scheduling Software

We're available to provide a FieldCollaborate demo -- and we'll show you how to implement and use software that has resulted in up to 30% cycle time reductions -- day in/day out!

It's President's Weekend -- Spring Selling Season is Around the Corner!

It's true: we're just about to wrap-up February -- and that means the Spring Selling Season is kicking off! This week offers a great time to take stock and develop plans to kick-off new Spring new home sales/marketing efforts.

How do you create a great Buying Experience?

We'd like to suggest several ideas to help generate visits to your sales office and better engage home shoppers when they're there:

(1) Start Reaching Out to Realtors, Now -- We've blogged about the value of co-op agents before (here's an earlier Solutions blog -- Builders, Co-Op Agents: Reaching the Asian Community.)

BuilderOnLine reports Spring is the busiest season for Realtors and suggests offering incentives to make sure they are up on the latest about your community.  How about putting together a Get Ready for Spring Open House -- maybe offering a "spa event" raffle for attendees?  Or, a Wine & Cheese evening with a several bottles of your favorite?

Keep the buzz going: don't stop with one event!  If you start now (in dreary February), you'll be ahead of 90% of your competition!

Don't forget Realtors often focus on specific demographics -- relocations, ethnic or religious groups, 55+ buyers, etc.  Try reaching out to the demographic-centric agents, often.  They always will have a group of interested buyers available to visit your community -- provide them with a reason to stop by.

(2) Work to Create a Great Buying Experience --- You want to be your customer's #1 choice; what can you do to make that happen? First, embrace the idea that home shoppers visit your office because they're interested in buying one of your homes.. in many cases, today!

Next, we'll suggest that it makes sense to start looking at your sales office as a customer does. What will help you stand apart so the home shopper rates your community #1?

Think about: what are you doing to create a great buying experience! From the minute a prospect drives (or walks) up to your office, they're using all of their senses to evaluate the experience...from smell to sight to touch!

Mollie Elkman, a Philadelphia-based marketing expert, reminds us that pictures offer "virtual curb appeal."  Why not build on standard imagery and Go Interactive to make your office stand apart and grab home shoppers' attention?

An interactive touch presentation actively engages prospects from the minute they step into your sales office and can continue the conversation with interactive floor plans, the ability to select and place furniture inside your homes and e-brochures.

CPS offers software to help you zero in on the co-op agent community (that's CPS CRM) as well as SalesTouch, our interactive touchscreen system for both the large and small (think tablets) screen. We're here to help -- even when it's snowing and raining!

How to: Kick-up Your Holiday New Homes Selling Season!

The Thanksgiving-to-New Year holiday season is here -- and home builders may see a slow down in sales office traffic and sales activity during this period due to the holidays, weather, competing activities and the like.

Weather doesn't need to be an objection!

But...it doesn't have to be so!

While some home shoppers might drop out during the holidays, BuilderOnLine suggests that many shoppers find the season a good time to kick up their buying process.

Why? Take a look at the reasons and see how you can turn potential negatives into traffic and sales:

• Yes; it's the holidays! It might seem counter-intuitive but...time away from work can mean time home shopping.  Take advantage of people visiting during the week and build on the season: add cookies, hot chocolate or even a special holiday options/upgrades program to encourage visits.
• Frightful outside? Yes, it's true: the weather in Minnesota can be chilly during December but...it really isn't that bad in many other states (and, might even be better than mid-summer in some locations!). Turn to the holidays and your locale for inspiration.  Hot apple cider makes any house seem like home! 
• Are decorations necessary? You really don't have to take on a specific holiday or tradition; add some family-style photos (or adventure vacation shots depending on your demographic!) and festive bowls of lemons, limes and oranges for fragrance and atmosphere.  A fresh, new look and feel is contagious!
• Doesn't 2018 means change? While some might be concerned about changes in 2018, others are energized.  Be prepared to talk about mortgage details, up ticks in home sales volume and any/every thing that's happening in your new community.  You can be the catalyst for thinking 2018 means exciting new adventures!

Now is the time to put your CRM system to the test, as well!  Send out a holiday appetizer invite to your co-op agents, zero in on those prospects interested in schools (those aren't changing!), deck your halls and encourage last summer's prospects to drop in on a (otherwise slow) Sunday for cookies and hot chocolate.

Need help finding a CRM system that can assist you in these efforts?  We're happy to show you how CPS CRM will make your holidays bright!

Marketing Focus: The Live-Work Lifestyle

Are you familiar with the phrase Live-Work Lifestyle?  According to a recent BuilderOnLine article, this term, particularly popular with Millennial workers, pairs telecommuting with opportunities for connection.

Many of us are familiar with telecommuting or working remote without a "typical" office to go to on a regular schedule.

SalesTouch provides focus on Flex Space options

But, BuilderOnLine suggests today's remote worker also wants to incorporate the element of seeking out camaraderie.

Not every telecommuter can or wants to live in an urban area. Housing prices as well as the need for larger living spaces, good schools, recreation and the like mean many remote workers are moving out to the suburbs suggesting home builders find creative ways to satisfy the demand for a vibrant lifestyle outside the city. 

In other words, telecommuting and flexible work options (such as 4x10 work weeks) are changing what home shoppers want not only in a home but in the neighborhood, as well. 

Take a look at the top image: CPS' SalesTouch in use at Cornerstone Communities new Agave neighborhood in North County San Diego displays structural features such as the optional Flex Space providing the home shopper with the home office so often needed for remote work.

SalesTouch highlights walkability

And, now take a look at the lower image: SalesTouch provides an interactive, pinch to zoom surrounding area map highlighting neighborhood locations meeting lifestyle objectives in the KBHome Reunion area. Those objectives can range from walkability as well as "work away from home" locations such as the library or Starbucks plus dining options and recreation hot spots such as parks, trails and dog walks!

Lifestyle marketing, in other words, is expanding as the interest in live/work options grows!

Yes! Boomers Are Buying Outside the "Smile States"

John McManus noted in a recent BuilderOnline Consumer Trends article that the US population is now 325.3 million and added a fact, that frequently goes unnoticed: the US population is getting older.

Millennials, Boomers .. and multigenerational, too!

There's been quite a bit of fanfare recently noting Millennials are finally entering the new homes market; yet, the median age across the board has gone up 7% since 2000.  More startling: the 65+ population has grown 40.5% in the same timeframe.

And, every state has experienced an increase -- or remained constant.  Maine has the highest median age (44.6) (compare that to Utah with the lowest at 30.8)!

What ideas might be drawn from these numbers?

Certainly, there's demand for 55+ communities in what are thought of as "traditional 55+" areas (for example, Sumter, FL has a 67.1 age median).  McManus suggests that builders and developers consider every area has 55+ potential -- and that there's a significant demand for multigenerational product, as well.

In other words, communities are drawing buyers from a wider audience than ever before -- and the audience is more diverse.  What seems to be consistent, McManus notes, is the interest in carefree living.  Accessibility -- in terms of interior space as well as outside the community -- and lifestyle -- think both community and surrounding neighborhood amenities -- are drivers as folks think about how they want to live as they get older.

Take a look at recent Solutions Blogs regarding walkability, amenities, green living, even floorplan options -- and how an interactive presentation -- we're highlighting CPS' SalesTouch -- will help tell your story more effectively to the range of today's home shopper audiences.

Millennials Are Buying; Are You Using Millennial-Friendly Marketing Tools?

Did you happen to see the recent Sacramento Bee article: Elk Grove millennials buck national home ownership trend in a big way?

Get Interactive and Highlight Your Millennial-Friendly Plans!

Author Thomas Oide cites marketwatch.com's studies indicating Elk Grove (a suburb south of Sacramento) is the No. 1 city in the country for homeownership for those under 35.  That's the Millennial demographic everyone is focused on! Smartasset.com found Elk Grove to be No. 2 with another Sacramento suburb, Roseville, in as No. 4!

Smartasset attributed the high rate of Millennial homeownership to the strong Sacramento job market (finally!) as well as the relative proximity to San Francisco. Note that median home value is $390,000.

Not every community has the San Francisco factor available for their marketing campaign, however. Builderonline offers suggestions for the rest of us in Redfin's Whitney Bennett's How to Make a Home More Appealing to Millennial Buyers.

We'll focus on Millennial-friendly Suggestion #1 and follow-up with others, soon: Create an Open Floor Plan.

Bennett (and NAR in 2014) says most younger buyers are interested in large, open spaces with fewer walls and partitions. Why? These buyers like entertaining in large spaces and are also interested in multi-functional rooms.

How to market that open floor plan? Let's look at a recent CPS SalesTouch installation at Cornerstone Homes' new Agave community in North County San Diego. You'll notice a great open first floor area as well as a second floor flex space -- along with the ability to interact with the floor plan and drag and drop furniture letting home shoppers dream and create their new living space!

Encourage your Millennial home shopper to design their home using interactive tools -- moving away from the standard brochure plan by mixing/matching structural choices, adding furniture, marking up the plan -- and making it their own!

Homebuilders: What's Different About 2017?

Interesting John McManus article in a recent Builderonline titled: Spring 2017: A Different Market. Take a look here.

FieldCollaborate: Tools for Today

McManus suggests that the just out of recovery market of 2 years ago is no longer.  Previously, demand for new homes was from the higher-end buyer.  Buyers weren't too concerned about qualifying and had definite ideas about what they wanted in their new home. To some extent, pricing was elastic.

Today, McManus says, it's a different market.  Now, the growth spot is lower-end, further out geographically with lots of communities open and selling homes. More competition, in other words, with a clear focus on price.

The change has put lots of stress on builders.  Lower sale price homes dictate a focus on margins. Costs are going up. It all translates into more of a push for volume.

McManus quotes a builder: We haven't spent so much time and focus on start-to-completion cycle times in six or seven years as we are right now.  It's really basic stuff of doing what we do, only doing it better and faster. Otherwise, we can't get the margins we need.

This type of market needs tools to help manage, measure and report.  Take a look at CPS' FieldCollaborate -- construction software designed to help you define, track and analyze your cycle time and highlight problems meeting your goals.  Improve communications -- both internally and with vendors. Reduce callbacks with task-specific quality checklists. Keep your field managers off their phones with automated followup and reminders.  We can help you meet the challenges presented in today's market.

Walkable Neighborhoods: Both Millennials & Boomers Love 'Em!

While traditional suburban communities continue to attract, urban environments are opening new home neighborhoods -- and attracting buyers! Both Millennials and Boomers are considering and buying in areas that previously wouldn't have offered new construction.

Use SalesTouch to Take a Virtual Walk About!

One of these neighborhood's key features (or, you could think, amenity) is walkability. There's even a new term: walkable urban places (sometimes referred to as WalkUps -- but completely different than multi-story buildings from the early-mid 1900's!!).

WalkUps are defined, in a June 2016 BuilderOnline article by Lauren Shanesy, as a development with substantially higher density, mixed-use product, emerging and new product types and a variety of transportation options.

Following are several marketing ideas you might consider using with a  WalkUp community: none are too complicated or expensive yet provide good touch points for your home shoppers:

1. Highlight Transportation Options: Home shoppers in all demographics love the idea of reducing their reliance on a car. Residents in WalkUps spend less on transportation so why not highlight options for your home shoppers?  Provide maps, schedules -- even signage from your local metro.  While Millennials and Boomers are key demographics for the new urban community, reduced transportation costs appeal to moderate-income home shoppers, as well.
2. Offer Walk Abouts: One of the reasons WalkUps are popular is easy access to convenient, interesting and unique shopping and dining venues.  Why not create an "It's in the Neighborhood" guide highlighting 15 close-by locations that are probably new to most of your home shoppers? Think: ethnic restaurants, unique bookshops, unusual hardware stores.  Let your potential buyers explore (literally or virtually) and see themselves living the experience! Drones are making aerial photos so much more affordable -- take a look at Richmond above and consider using this type of visual introduction to the neighborhood.
3. Shine a Light on Educational Institutions: Washington, DC is considered the second highest ranked WalkUp and over 50% have B.A. degrees.  One of the urban neighborhood attributes frequently mentioned by Boomers is access to educational opportunities.  These don't have to be just colleges and universities. Consider adult education and interest-focused centers, too. Look for places like innovative yarn shops, photography studios, art centers.  Let your visitors know what's in the neighborhood with an easy-to-read map focused on neighborhood learning opportunities!

Go one step further and add an interactive touchscreen system to tell your WalkUp story. CPS' SalesTouch offers the aerial photo detailing shopping, dining, recreation and community options in Richmond (above); can't you see your buyers virtually exploring your neighborhood?

New Home Construction: Velocity and Profitability

Are you on the construction side of the new homes industry? Great recent Builderonline article by Mary Salmonsen; you can read it here.

Shifting focus to velocity can enhance profitability

Salmonsen highlights one of SAI Consulting Fletcher L. Groves' concerns: the under-consideration of project velocity in builders' business processes.

Or, to paraphrase a comment by John McManus mentioned in a previous Solutions blog: builders need to work with greater velocity or... learn the pain.

In other words, rather than putting a laser focus on individual lot margins, apply some of that attention, data collection and reporting to the amount of time required to build that home. That's cycle time.

Of course, cycle time doesn't live in a vacuum -- and can't be measured in the abstract, either.  Do you have a published schedule -- and do you track progress against it? Does everyone look to a specific schedule or do you have multiples floating within the company?  If there's one, not only can you measure cycle time but you're able to provide consistent, reliable schedules to your vendors.  They're able to better plan and their planning helps them become more consistent, efficient and profitable. That's a win/win!

Are you able to report on which vendors show up on time, or have the highest level of rework, consistently have safety issues, always fail field inspections? That information helps shape a long range vision of your construction cycle and helps deliver consistently better results.  And, it should be available relatively easily and consistently to be effective.

We'd like to suggest CPS'  FieldCollaborate as a software tool to help you develop consistent schedules and measurement tools.  You're able to quantify and measure quality items, delivery times, subcontractor consistency, safety assessments and punch items.  It all helps highlight factors impacting your construction cycle and allows you to be proactive about the next lot, phase and community -- and design for long-term profitability.

Marketing Homes to Today's Millennial Buyers

There's a recent Builderonline article called How to Make a Home More Appealing to Millennial Buyers (you can read it here). 

Redfin's Whitney Bennett points out  the Millennial demographic makes up a large portion of the home buyer market and suggests several ways to be more Millennial-friendly in your marketing.

SalesTouch: Let buyers start creating their multi-functional living space!

We'll focus on Suggestion #1 and follow-up with others, soon: Create an Open Floor Plan.

Bennett (and the National Association of Realtors in 2014) says most younger buyers are interested in large, open spaces with fewer walls and partitions. Why? These buyers like entertaining in large spaces and are also interested in multi-functional rooms.

How to market that open floor plan? Let's look at a recent CPS SalesTouch installation at Cornerstone Homes' new Agave community in North County San Diego. You'll notice a great open first floor area -- along with the ability to interact with the floor plan and drag and drop furniture letting home shoppers dream and create their new living space!

Next on the Millennial wish list: walkability -- and according to Redfin.com's recent study, each point on the walkability score can increase home prices by an average of $3,250.  More to follow!

How to: Keep Home Sales Momentum during the Holiday Season

The Thanksgiving-to-New Year holiday season is upon us -- and some new home builders can see a slow down in sales office traffic and sales activity during this period.

Weather doesn't need to be an objection!

But...it doesn't have to be so!

While some home shoppers might drop out during the holidays, a recent BuilderOnLine article suggests that many others find the season a good time to shop.

Why? Take a look at the reasons and see how you can turn potential negatives into traffic and sales:

• It's the holidays! It might seem counter-intuitive but...time away from work can mean time home shopping.  Take advantage of people visiting during the week and build on the season: add cookies, hot chocolate or even a special holiday options/upgrades program to encourage visits.
• Isn't it frightful outside? Yes, it's true: the weather in Minnesota can be chilly during December but...it really isn't that bad in many other states (and, might even be better than mid-summer in some locations!). Turn to the holidays and your locale for inspiration.  Hot apple cider makes any house seem like home! 
• Are decorations necessary? You really don't have to take on a specific holiday or tradition; add some family-style photos (or adventure vacation shots depending on your demographic!) and festive bowls of lemons, limes and oranges for fragrance and atmosphere.  A fresh, new look and feel is contagious!
• Doesn't 2017 means change? While some might be concerned about changes in 2017, others are energized.  Be prepared to talk about new mortgage loan limits (yes, they're higher!), up ticks in home sales volume and any/every thing that's happening in your new community.  You can be the catalyst for thinking 2017 means exciting new adventures!

Now is the time to put your CRM system to the test, as well!  Send out a holiday appetizer invite to your co-op agents, zero in on those prospects hitting the "old" conforming loan limit and let them know both Freddie and Fannie have increases on the horizon, deck your halls and encourage last summer's prospects to drop in on a (otherwise slow) Sunday for cookies and hot chocolate.

Need help finding a CRM system that can assist you in these efforts?  We're happy to show you how CPS CRM will make your holidays bright!

2017 Means More Buyers, More Selections: How to Manage Customization

A Builderonline article, Your Biggest Competition isn't Other Builders, highlights advantages to purchasing a new home when compared with an existing home sale.  The author, Myers Barnes, highlights 7 key selling advantages.

The second key advantage is customization and that asks a basic but key question:  who wouldn't want input on design and product selections?  The article suggests reminding home shoppers that a new home will reflect their personal style -- not someone else's taste.

FieldCollaborate: Improve customization processes

And, a reminder: Millennials -- expected to be a key 2017 buyer profile -- are very keen on customization and personal style!

Some of you might be thinking, "Oh, customization; tried that.  It adds time to our schedule and it's tough to keep track of all the selections, changes, re-selections. Not even sure they're profitable."

But...customization is a key selling advantage for new homes.  How can a builder's current process be better managed to efficiently offer something that home shoppers really like?

Previous Blogs mentioned the need for simplification and process analysis.  Scott Sedum's 25 Essential Scheduling Practices article in ProBuilder offers several steps to consider:

(1) Provide only the number of options customers will pay for and can be kept 100% current - revisit annually.  Do you know how many times each option is selected?  If every sale has a particular option, wouldn't it improve operations to make it a standard feature?

Ask accounting to provide an "options ordered" list and review with sales.  It's a great selling advantage to have an extensive list; take the time to analyze that all your costs are included and the scope isn't so extensive to unduly burden the team refreshing the list at the beginning of each year.

(2) Coordinate cut-off dates with sales for option selections and changes -- and help manage everyone's expectations. Sedum mentions, "It takes skilled salespeople, a focused management team and a company-wide commitment to maintain this discipline." Not maintaining such an approach impacts schedules and costs and can create negatives in home buyer perceptions, as well.  No one wants to hear the neighbor was able to add the granite counter top after cutoff when they couldn't!

We'll suggest a third:

(3) Take advantage of technology so your team knows when options are added or deleted -- and can easily browse all appropriate documentation including drawings.  CPS' FieldCollaborate offers scheduling software tools and provides field managers 24/7 data access necessary to keep up with options activity.  They're able to see what has been ordered on Lot 12 -- and when.  It's possible to view drawings -- all from their smartphone and tablet!

Customization is a powerful selling advantage; make sure that your operations are nimble enough to manage the necessary processes. CPS can help you determine what processes will best help you -- CPS•CRM manages option selections including cut-offs and FieldCollaborate provides critical 24/7 access to selections, schedules and drawings.

3 Ways to Market Your Community's Walkable Urbanism

While suburban communities still have their appeal, it is becoming more and more apparent that urban environments are attracting new home neighborhoods -- and buyers!  Both Millennials and Boomers are considering and buying in areas that previously wouldn't have offered new construction.

Downtown Richmond -- start exploring!

One of these neighborhood's key features (or, you might think, amenity) is it's walkability. There's even a new term: walkable urban places (sometimes referred to as WalkUps -- but completely different than multi-story buildings from the early-mid 1900's!!).

WalkUps are defined, as BuilderOnline's Lauren Shanesy notes in a recent article, as a development with substantially higher density, mixed-use product, emerging and new product types and a variety of transportation options.

There are a couple of concepts associated with WalkUps you might consider as part of a community-based marketing program -- not too complicated or expensive yet providing good touch points for your home shoppers:

1. Highlight Transportation Options -- Home shoppers in all demographics love the idea of reducing their reliance on a car. Residents in WalkUps spend less on transportation so why not highlight options for your home shoppers?  Provide maps, schedules -- even signage from your local metro.  While Millennials and Boomers are key demographics for the new urban community, reduced transportation costs appeal to moderate-income home shoppers, as well.
2. Offer Walk Abouts -- One of the reasons WalkUps are popular is easy access to convenient, interesting and unique shopping and dining venues.  Why not create an "It's in the Neighborhood" guide highlighting 15 close-by locations that are probably new to most of your home shoppers?  Think: ethnic restaurants, unique bookshops, unusual hardware stores.  Let your potential buyers explore the neighborhood (literally or virtually) and see themselves living the experience!  Drones are making aerial photos so much more affordable -- take a look at Richmond above and consider using this visual introduction to the neighborhood.
3. Shine a Light on Educational Institutions -- Washington, DC is considered the second highest ranked WalkUp -- and over 50% have B.A. degrees.  One of the urban neighborhood attributes frequently mentioned by Boomers is access to educational opportunities.  These don't have to be just colleges and universities --  there's always adult education and interest-focused centers, as well.  Think: great knitting shops, photography studies, art centers.  Let your visitors know what's in the neighborhood with an easy-to-read map focused on neighborhood learning opportunities!

Take one step further and consider highlighting these factors using an interactive touchscreen system.  CPS' SalesTouch offers the aerial photo detailing shopping, dining, recreation and community options in Richmond (above); can't you see your buyers wanting to be able to virtually explore your neighborhood?

More on Spring '16 Home Sales: Is a Reality Check Needed

Super interesting BuilderOnLine article recently by John McManus, Spring 2016 Pain Points -- with some good commentary afterwards, as well.

SalesTouch: delivering your value proposition message

McManus asks, As a builder, what's your biggest worry in Spring 2016?  And, he offers 4 possible answers: Lots, Labor, Lending, Demand. He suggests most builders would answer: demand.

But, he asks: is that really the case? There's been demand since early 2014; although, he argues, in only certain market segments. If those segments were your segments: all good!

Some builders focused their efforts (throughout the organization) on lower margin product and they've been able to find and satisfy demand at the entry level. It isn't, McManus suggests, going to be that straightforward for others to successfully satisfy the lower margin market.

Where is your organization in terms of meeting demand this year? There can be internal constraints (organization, product, execution, profitability) as well as externals such as interest rates, consumer credit scores and area-specific economic issues (such as those currently impacting oil/gas-centric areas).

SalesTouch Mobile: Enhancing every consumer touch point

And, McManus suggests, not only do you need product that meets your buyer audience but your buyer expects you'll deliver on a promise to help him/her improve their own value as a resident.  

Where are you? Is the Spring 2016 the market of 2014 or 2015?  Or, are your revamping how to interact internally and externally with the home buyer? How are you telling your story -- and is it delivering on your unique value proposition?

Take a look at SalesTouch -- we think CPS can help you effectively deliver information -- product, location, design, function and features -- in a focused manner designed so your home shopper gains confidence in your ability to deliver the value proposition.

Spring Home Sales Look Promising: Are You Ready?

Signs of Spring are all around us: budding flowers, pollen everywhere, gorgeous sunsets!

And, the signs for a great new home Spring selling season are here, as well.  BuilderOnline recently highlighted Realtor.com's economist, Jonathan Smoke's market take: a strengthening economy, increased consumer confidence, low new and resale home inventories and increased consumer purchasing interest.

Are you prepared for Spring's uptick?

Almost all new home sales are local; how are things in your area? If you're in Boston, Madison, Rochester, Minn or Durham, NC...they should be great as inventory is so low that the median inventory age dropped by an entire month!

The news, in other words, is very encouraging for a great Spring season -- are you prepared to take advantage of this terrific market?

I'm ready, you might say; but are you really?  Amy O'Connor, with Shore Consulting, suggests taking a look at 5 "must haves" for the Spring selling season -- and the first is sales momentum. You can check out the other four here.

Amy suggests you need to start strong -- meaning get organized and be fully ready to snag the early Spring sales.

Are your marketing materials up-to-snuff?  Do you have enough of them?  How about your CRM?  Do you have your purchase agreement documents available for quick and accurate preparation?  Have you looked into DocuSign as a way to quickly generate your entire purchase agreement package for across the web signing?

CPS can help with your CRM needs: we had a client, years ago, who said it used to take him about 3 hours to fully prepare a purchase agreement package and that had been reduced to about 30 minutes using CPS CRM's fully automated purchase agreement prep process.  We can get you up and running with an automated process using your documents in less than 1 week!