Staying Competitive in Today's Homebuilding Industry.

Staying Competitive in Today’s Homebuilding Industry
Deloitte and McGraw-Hill Construction • U.S. Homebuilder Survey
Sales & Marketing
Marketing and Selling the Home
Which marketing approaches will drive the most sales?
Marketing Approaches
Respondents
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Signage
This phase of the value chain is different for
builders who create a speculative inventory
rather than wait until they have a commitment
from the buyer. The two major methods that
builders use to sell residences include employing
an in-house sales force and using independent
real estate brokers. Other popular marketing
tactics include advertising in newspapers and
magazines, on billboards, and via direct mail.
Marketing Approaches
Local Consumer
Newspaper Publication
“Parade
of
Homes”
Direct
Mail
Virtual
Tour
Customer referrals or detailed builder web
sites are other ways to find prospective
buyers. On average, respondents indicated
that their marketing and advertising costs
were less than three percent of sales revenue.
Showcasing a builder’s wares through
development of model homes represents
another popular way to sell new homes.
Use Frequently/Use
Never/Seldom Use
Targeted to fit the tastes of the local market,
model homes are ideal for would-be buyers
who are concerned about getting as much
information – as well as a first-hand look
and feel – about the builder’s product before
making an investment. Some model homes
display extra features, such as master bedroom
fireplaces and high-end cabinets, which
consumers can select for an additional cost.