With unbridled home appreciation and easy loans now distant memories, custom builders find themselves facing a different kind of home buyer. Buyers who were out of work or worried about being out of work, who watched their investments dwindle at the same time they lost equity in existing homes, and who (for years) read and heard daily about rampant foreclosures will understandably bring new attitudes to the home buying process. Prospects who were fortunate enough to have avoided these financial dramas at least felt threatened by the potential for them, so they, too, will be moving more cautiously.
Within this context, success and prosperity are available to builders who recognize and respond to the changed environment within which we now work. Simply put, now is the time to attend to home buyers’ psychological needs. These include a desire to find a building partner who can be trusted, who will reassure them that the details are under control, and who will deliver customized communication and genuine service.
Friendly Candor Builds Trust. Nearly every type of public and private institution has been called to task for poor judgment, if not downright stupidity or worse, illegal behavior. Given the magnitude of the crisis of trust in today’s society, forthright communication has increased in value—many times over, it seems.
Traditional “promise anything” and “tell ’em what they want to hear” marketing will fail with most of today’s home buyers. They want complete, accurate information, so come armed with details about the products, processes, and building methods they’re considering—both the pros and cons. Pointing out potential negatives actually builds trust. Why? Because everyone already knows you’ll mention the good things!
For example, if the energy-saving tankless water heater a buyer is considering requires professional servicing on a regular basis, this is best pointed out before the buyer selects one for his new home. When you share downsides, the customer knows he can believe the good points you list as well. Achieving this level of communication requires technical expertise, and a communication style that allows you to present such information diplomatically.
Oasis of Control. Builders often lose control of their relationship with buyers during the design/selection stage— and never regain it. With a foundation of carefully planned meeting agendas for each stage of the process, they can be in control right from the start. Best of all, in the context of a world gone mad, buyers will be reassured by someone in charge who knows how to manage details effectively and calmly.
Even if your planned agendas are never followed exactly as written, they provide clients with a sense of direction. Plus, clients view them as tangible evidence that you know what you’re doing.
Customized Communication. One advantage small-volume builders have is the ability to customize communication to suit the personality of each home buyer. One client may need almost daily updates via phone or e-mail, for example. Another might be content to visit the jobsite biweekly to discuss questions. Still another might wish to be contacted only about major decisions and at a few key points during construction.
Talk about which approach is most comfortable for your buyers, and then do your best to accommodate their needs, recognizing that their level of interest may wane throughout the process. As questions or issues arise, document every detail for follow-up. Set a realistic time frame for an update or final answer—and then beat it.
Service With a (Sincere) Smile. Behave as if you like your customers—long term. Think of the closing table as the midpoint in your relationship with the home buyer, rather than as the end of it. Plan rigorous and appealing services for the post-move-in phase. Ensure that your warranty service is top-notch: prompt, courteous, and effective. Ask to inspect the home for your homeowners instead of expecting them to submit a list. Put your best people on warranty as a priority. Track completion of items like your future business depends on it, because it does.
Need more ideas? Consider providing information or scheduling a social event for your homeowners on an annual or semiannual basis. Send seasonal reminders about key maintenance items, or host a workshop about faux painting or closet organizing—and always give customers the option to bring a friend. You might even want to host a housewarming event for the homeowners’ friends and family—they are likely to have similar values and lifestyles, after all. And some of them may, too, be looking for a builder they can trust.
Carol Smith offers customer service assessment, consulting, and training programs for home builders. She can be reached at csmithhomeaddress@att.net.
