birmingham homebuyer insights august 2014

Digital Marketing Consultant* Building Industry Specialist – 19 Years• MIRM, MCSP, CAPS, CGA, AA, Broker• Past Chair National Sales & Marketing Council• Past Chair Professional Women in Building• 2011 NAHB PWB Woman of the Year• 2011 NAHB NSMC Bill Molster Award• 2010 NAHB MCSP of the Year!•2 2009 NC Distinguished Associate of the Year!

Tammie Smoot

Digital Marketing Consultant* Building Industry Specialist – 19 Years• MIRM, MCSP, CAPS, CGA, AA, Broker• Past Chair National Sales & Marketing

Council• Past Chair Professional Women in Building• 2011 NAHB PWB Woman of the Year• 2011 NAHB NSMC Bill Molster Award• 2010 NAHB MCSP of the Year!•2 2009 NC Distinguished Associate of the Year!

BDX : Who we areA team of online marketing experts.Solutions to create the complete digital experience

May I Ask a Favor?

1. Facebook : Builders Digital Experience2. Tweet - #the_BDX3. Who is Bill Barnes?4. Thank You to our HBA Staff and Tony Birk

Agenda• What homebuyers are looking for in a new

home and how to position your homes better

• Messages that resonate with Realtors• Demystifying New Home Sales

• Start Fresh Buy new• The HomeBuying Time Line• Ideas to use today

• Insights & Implications

Strategic Industry Initiative

Expanding the New Home Market

The New Home Industry has a problem&

It is time to do something about it!6

What is Start Fresh. Buy New?– Large scale, industry wide campaign

promoting the advantages of newly-built homes to home shoppers.

– Comprehensive, national research plan to gain insights from both consumers and agents.

– First-of-its-kind consumer marketing & promotional campaign reaching millions of home shoppers in 2013 and 2014.

.

Examine Significant Industry Questions

How is the face of today’s home shopper

changing?How is the

generational cohort shift affecting the shopping process?

What are the primary barriers to “New” home

purchases?

Why is appeal for new growing/waning?

Capture “Pulse of Shoppers”How financially confident are

home shoppers at the moment?

Which options are most popular today?

What type of incentives are most

motivating to shoppers?

What type of appliance brands are most appealing

to shoppers?

Website

* Video views: >360k

*Total site visits: >1.1MM

Engagement:Time spent: 03:20 min

www.startfreshbuynew.com

Most Popular Site Content

Start Fresh. Buy New. Digital Ads

© 2013 Builders Digital Experience, Inc. All rights reserved.13

Insights from Home Shoppers, Recent Buyers & Real Estate AgentsSummer 2013 Tracking StudyBDX & Hanley Wood

Research

Agent Study Executive Summary

14

Realtors overwhelmingly rely on MLS to learn about new builder properties

• Beyond MLS, realtors learn about new homes through builder announcements and from other agents/brokers

While realtors have a good understanding of why people are buying, they overestimate why buyers work with realtors

• Buyers look to realtors for help finding a home and negotiating price rather than mkt knowledge

About half of all realtors prefer to sell existing homes • Those that are not likely to recommend new homes to prospective buyers cite

difficulties with pricing and convincing buyers of the value

Nearly two-thirds of realtors believe that builders are not offering useful training about how to sell new homes

As expected, realtors recognize that new homes outperform existing homes on energy efficiency, customization, etc.

• Similar to prospective buyers, realtors have varying opinions about whether new homes offer higher quality construction than existing homes

1

2

3

4

5

of homes sold are “Used”

90%But 18% of

Home Shoppers Preferred

New Birmingham MLS Jan- June 2014 7536 Homes Sold – 800 New…… About 11%

of shoppers are considering both New and Used

But What about Birmingham???

2012 – 11%

2013 – 10%

2014 – 11%

of shoppers who initially prefer New, ultimately buy Used


We Lose Shoppers……


Why Oh Why…..

Longer Buying Cycle

85%of recent home buyers worked with an agent

agents are crucial

91%of those preferring new yet bought used worked with an agent

Resulting Marketing Gap & Opportunity…

The Majority of the Realtors and Home Shoppers think that used homes are more affordable

Why Buyers Use Realtors


Realtors Primarily Rely on MLS to Learn about New Properties

26

None of theseOther

Radio advertisingTelevision advertisement

Local magazine/publicationSocial media (i.e., Facebook, Twitter, etc.)

National real estate listing websitesLocal newspaper articles

Billboards and roadside signageLocal newspaper advertisements

Online advertisement

Online search engines (i.e., Google, Yahoo, etc.)

Local Real Estate/New Home PublicationsLocal real estate listing websites

New home open houses hosted by buildersNew community/model home visits

Other agents/brokersBuilder announcements (e.g., e-mails, etc.)

Multiple listing service (MLS)

0% 25% 50% 75% 100%

18

557

1313

1616181820

2529

3738

4549

80

Sources of Information

% of respondents

Base: All, 3,044 ● Q14: How do you become aware of new homes offered by builders that are available to prospective (residential) buyers that you work with? Select all that apply.

Make it EASY

• Clearly State the REALTOR REGISTRATION & COMMISSION POLICY

• Add VIDEO Tours

• Include a PDF of your BENEFITS and STANDARD Features

• Include HOMEOWNERS ASSOCIATION information

• DIRECTIONS to the Community

• SHOWING INSTRUCTIONS? Lockbox?

• CONSTRUCTION STATUS


Email Marketing – Tips* One of the best methods for directly reaching your audience

* More affordable than most other methods

* Information is up to the minute

* Rapidly becoming the end user's preferred method of communication

• Results and conversions are easily tracked

Where will you get your list from?

What service will you use to send out the emails?

Who is designing your emails?

How will I manage unsubscribes?


SPAM Compliance

Best practices and CAN-SPAM compliance

http://www.thebdx.com/sites/default/files/CAN-SPAM.pdf

Federal Trade Commission's rules concerning CAN-SPAM

http://www.ftc.gov/bcp/edu/pubs/business/ecommerce/bus61.shtm






What the Realtors said ……


What Do Realtors Really Want?

• Know & Trust the Builder & Developer

• Builders Sales Person is a Trained Professional

• Customer Satisfaction

• Bonus – Added Commission – Spiff

• Know that they will get paid• Give them the tools that they need


What Do Realtors Really Want?

• Respond Quickly

• The Community is an Easy Sale

• Recognition

• Clearly Communicate Your Commission Policy


Know your Competition


Let’s do the math……

Realtors’ Focus on What’s Most Important Does Not Align with Buyers Or What Helps Sell New Homes

37

Base: All (3,044) ● Q19: For each attribute below please indicate the extent to which you believe existing and new homes offered by builders differ? Use your mouse to slide the marker towards your answer. ● Q15: When working with a client to purchase a home, how likely are you to recommend they purchase….

0

25

50

75

100

A OS H J

LT

P KQ E D F

M C U V N R BG

I

Most Important Home Features for Driving Rec-ommendations to Clients

Overall Importance

Average

A Lower cost per square foot/More space for the money

B Lower maintenance costs (money and time spent)

C More living spaceD Less living spaceE Proximity to good schoolsF Convenient to

shopping/entertainment/activitiesG Safer neighborhoodH Character/Uniqueness of homeI Convenient to workJ Convenient to friends/familyK Larger yard or lot/More space

between housesL Established neighborhoodM Ability to customize house to best

suit you and your familyN Community amenities (pool, park,

golf course, etc.)O Quality of constructionP Architecture/Overall design

(appearance of house)Q Better floor plans for me and my

familyR Energy efficiencyS Sense of community within

neighborhoodT Mature trees & landscapingU Prestige/ExclusivityV Storage space

Impo

rtanc

e*

Attribute*Derived Importance: The scores are shown as relative importances using TreeNet Analysis


Mortgage Calculator -* testimonials * describe the

process

ProspectWave 1

ProspectWave 2

0%

25%

50%

75%

100%

3952

6148

Ownership

OwnRent

ProspectWave 1

ProspectWave 2

17 14

78 83

5 3

Type of Construction

Custom built on own lot Existing Home

Brand new home offered by builder

More Renters Are Shopping

40

ProspectWave 1

ProspectWave 2

39 43

61 57

Type of Home

Single Family Detatached Other

Current (Prospect) Primary Residence

Source: BDX 2012 and 2013 Homebuyer Insights Study, Hanley Wood, Chadwick Martin Bailey

*New v/s Used• How do I buy

• * Credit Seminars

0.00

2.00

4.00

6.00

8.00

10.00

12.00Quality of

constructionSafer

neighborhoodBetter

floor plans

Energy efficiency

Lower maintenance costs

More living space

Lower cost per sq. footArchitecture/

Overall designLarger yard

or lot

Convenient to work

Top 10 Most Important Considerations for Home Purchase

Wave 1 New SegmentWave 1 Indifferent SegmentWave 2 New SegmentWave 2 Indifferent Segment

Average

Top Criteria Remain Largely Unchanged: Quality Reigns Supreme

42

Mea

n im

porta

nce


0% 25% 50% 75% 100%

30

21

33

31

39

38

41

49

58

61

80

31

20

31

23

36

35

34

47

58

63

77

New is BetterExisting is Better

0%25%50%75%100%

29

13

20

13

11

11

8

6

6

7

2

25

11

18

14

12

10

9

6

7

5

2

Prospect Wave 1 Prospect Wave 2

New Homes Have Improved/Maintained Performance in Many Areas But Lost Ground on Quality

Energy efficiency

Ability to customize house

Lower maintenance costs

Better floor plans for me and my family

Community amenities

More living space

Storage space

Prestige/Exclusivity

Architecture/Overall design

Safer neighborhood

Quality of Construction

43

Existing is Far Better (4pts)

No Difference(Middle 3pts)

New is Far Better (4pts)

Items rated on an 11pt slider scale with anchored ends. Data shown excludes middle 3 points. Items sorted by gap score (new-existing).

Attribute Performance (sorted from high to low based on gap between new minus existing)

Note: Movement of approximately 4 pp is considered meaningful


0 5 10 15 20

0

4

5

5

7

9

10

8

11

12

12

16

0

5

5

6

7

9

11

9

11

12

11

14

Prospects

Recent Buyers

Buyers Use Essentially the Same Factors to Determine Quality of New and Existing Homes

Durability

Workmanship/Craftsmanship

Structural Materials

Fit and finish

Warranty

Architectural Design

Performance specifications

Energy ratings

Built to specifications

Newest technology

Good for the environment/green

Other

44

0 5 10 15 20

0

5

6

7

8

9

9

10

10

11

11

13

0

6

6

7

8

9

10

9

10

11

11

13Existing Quality New Quality

Importance of Criteria for Determining Quality(among shoppers who will or did consider each type of home)


How do we combat this?

Builder Toolkit

Builder Toolkit

Available on….

Nashville

Insights & Implications

The process is lengthy & emotional… the joy gap is real

JOY Gap

- Joy!- Relax – focus on your

“want-to-do” listJoy

OFFER ACCEPTED

BEGIN JOURNEY

Excitement“I’m ready for a new

adventure!”

Worried“I hope I make the right

choice.”“Who can I trust?”

Nervous“Can I afford it?”

“Did I buy a lemon?”

Exhilaration“I found the house!”

Tentative Excitement

“We did it, but now what?”

MOVE-INDATE

Cautious“Will the build process

go okay?” (new)“What will the

inspectors find?” (existing)

Life in an EXISTING home

Life in a NEW home

- Joy (guarded)- Stressed – list of “to-do’s” is long

9 out of 10 buyers start their new home search online.

Are your new homes on the HBA

Website?

For effective consumer messaging…

…illuminate shortcomings of Used homes

…and emphasize the attributes shoppers value most

Designed for Living

Low Cost of Ownership

Quality Construction

Energy Efficiency

*Focus our messaging on criteria that are considered most important to recent buyers, where gaps exist in perceptions of new and existing homes

Quality of ConstructionNeighborhood SafetyBetter Floor PlansLower cost per square footArchitecture/ overall designLower Maintenance Costs

• Keep in mind that those who purchase existing but PREFER NEW are likely to be young Families (working full time , aged 40-60, planning an increase in family size.

*Research across the Chartbeat network has shown that if you can hold a visitor’s attention for just three minutes they are twice as likely to return than if you only hold them for one minute.

Brand Awareness, Perception & Opinion

How do you stack up with regards to value?

What can I do to improve my image?

How would you rate each of these builders as far as construction quality is concerned?

What is your local brand awareness, aided & unaided?

How likely would a shopper refer you to a friend?

#1 Feature of Top Selling Plans

• They’re presented well. Make sure your marketing materials match your customer’s high expectations.

www.builderonline.com

Bad Photo = Bounce

“According to research from the National Association of Realtors, 98% of home buyers who searched for a home online said photos were among the most useful features of real-estate websites.”

Start with quality content: image quality

Average

+15%

-15%

Set Yourself Apart????

Start with quality content

VS

Images by BDX -media

MLS – Best Practice FLOOR PLANS

BDX Confidential Material - Please Do Not Distribute

De-Stressing

Entertaining

Flex Space

Storage

Livability At A Glance!Floor Plans Without The “Clutter”

EXAMPLE: This traditional Ranch home is perfect for entertaining, offers a Master Suite for peace and quiet, space for a home office, future nursery, or guest room, and plenty of storage.


Interactive—take it up a notch!

Hot Spots

Drag & DropFurniture

CustomizablePlans

Social MediaIntegration

Interactive Floor Plans—let her play (and share)!

Whichxample?

Give them the tools they need - Video:

Compete Research results show 86% of new construction intenders identified community & home videos as a primary resource during their shopping process.


• Model Home Tour• Community Tour• Outside The 100 Acres

• Company History• Company Philosophy• Message from the CEO • Meet the Team

• Buyer Testimonials

GREAT Video Ideas…

• Warranty• Customer Service• Educational (Viral)• Financing

• New Initiatives• Our Process

• Design Tips• Move-in Welcome

• New vs Used

Let’s take a look at some examples!

Why You Need Video• 88.6 Million people

view online video each day (comScore)

• 53X increase in front page Google results with properly optimized video. (Forrester)

• 90% of shoppers feel video is useful when making a purchase decision.

Back to main page


Consumers engage across multiple devices!

Affordable for all: Responsive design (one site!)SAS (s/w as a service) Self managed thru content mgmt tools

BHI Confidential

Use technology to help her visualize, play, and connect…

• Online design tools (pre sales, design process, home ownership)

• Sales tools for field use…

Builder Insights Initiative • Understand your buyers and your Realtors• Provide the tools for the Realtors to help

you!

• Your biggest competition is Used

• BDX Toolkit – get it today

• Examine your brand, your content and your market strategy

• Educate your sales team and your Realtors.

THANK YOU FOR ATTENDING

Tammie Smoot MIRM, MCSP, CAPS, CGP

Digital Marketing Consultant– Building Industry Specialist

Builders Digital Experience

2011 NAHB Professional Women In Building – Woman of the YearPast NAHB NSMC Chair

Past NAHB Professional Women in Building Chair

The Carolinas704-507-4411

[email protected]

Builders Digital Experience

birmingham homebuyer insights august 2014

Documents

new home purchases

new homesas

new growingwaning

millions of home shoppers

nahb mcsp

new builder properties

building industry specialist

face of todays home