re builder conf 10 08v final
DESCRIPTION
Shift Happens: Presentation by RE: Expert Consortium to Colorado Home BuildersTRANSCRIPT
SHIFT HAPPENSThe Great Paradigm Shift
In Residential Real Estate Is Here
Presented by theRE: Expert Consortium
10.09.08
Yesterday’s Buyers
Today’s Buyers
What worked before – will not work again.
Today’s buyers demand an elevated,customer-centric experience that demands you
SHIFT your thinking and your actions…or face the consequences.
RE: Expert Consortium Founding Members
MetrostudyWayde Jester, Director of Consulting
Lance Jackson & AssociatesLance Jackson, Strategic Director
Trio Interior DesignAngela Harris, Principal
The InterPro GroupZ. James Czupor, Principal
Jennifer Gore UnlimitedJennifer Gore, Principal
Safely Getting to the Other Side
WAYDE JESTERDirector of Consulting
Metrostudy
Safely GettingTo The Other Side
THE PAST
Size of Denver Market was 20,000 Homes
Mortgages Were Easily Obtained
Consumers Looked at Homes Like a Blue Chip Investment
TODAY
Size of Denver Market is 7,000 Homes
Credit Markets Have Chilled
Consumers Have Lost Equity in Their Home
Bank on This…
Most of your competition will continue to do business the same way, refusing to adapt to a new market environment
Distressing times always produce winners; they are the ones who have paid attention to the market shift and adjusted their strategies
Consumers are fence sitting right now, but when they return to shopping for a house they will respond to good value – “flight to quality”
Big Builders have the advantage of in-house financing, but when the market picks up they are not prepared to ramp up production having lost key personnel
And This…
Colorado is the 5th best job producing State in the Country, many thanks to the energy business, but also because we have a diversified economy with tech, bio tech, tourism and manufacturing.
Absent a price bubble, home values locally have less downside risk. Year over year Denver SF prices are down 14% compared with 20 and 30 percent in AZ, NV and CA.
Metrostudy expects demand to pick up by Summer 2009, gradually for sure, but some of the fences sitters will jump back in.
While it may be a decade before we reach the level of homebuilding activity we achieved in 2005, Denver and the State of Colorado have very good long term prospects.
Important Questions:
Are we a unique builder defining our own niche?– Buyer profile, depth of market
Are we a common builder looking for a fair share of the market?
– Number of competitors, current supply and demand
Do you need help answering these questions?
The Shift in Defining andCommunicating Who You Are
LANCE JACKSONStrategic Director
Lance Jackson & Associates
The Shift inDefining Who You Are
THE PAST
You stated with pride the number of years you have been a quality builder, or the number of years you’ve been building homes (number of years or homes has little interest to anyone except yourself)
TODAY
You must declare your credentials and unique ability to deliver your brand’s promise – every time(think about proprietary methods, protocols, etc.)
The DEPTH your brand has to offer
The Shift inDefining Who You Are
THE PAST
Your builder story is based upon your history as a builder or developer… and that will be enough to differentiate you (yet, in your market’s mind, they all read the same)
TODAY
Your brand must embrace your personal vision for your enterprise, and your customers(if you do, your brand will be unique)
The DESIREthat drives your brand
The Shift inDefining Who You Are
THE PAST
Your builder story was a well-crafted paragraph about “attention to detail,” “craftsmanship” and “design”
(overused/common and undistinguishable)
TODAY
You must declare with clarity and brevity the market want you are fulfilling (Unique Selling Proposition – USP)
The DEMAND your brand is fulfilling
Your Brand’sUnique Selling Proposition
Home Buyer Internet Usage
84% of active home buyers use the internet in their search for a new home.
Source: 2007 NAR Profile of Home Buyers and Sellers
The Shift inCommunicating Who You Are
THE PAST
Your web site is static – a “brochure-ware” site
TODAY
Your web site must be dynamic
The Shift inCommunicating Who You Are
THE PAST
You publish information regarding new locations or home designs
TODAY
Your web site must be interactive – think of it as a conversation venue
The Shift inCommunicating Who You Are
THE PAST
You use your web site to inform those who happen to visit it
TODAY
Once your web site is engaging and dynamic – promote it at every opportunity
The Shift inCommunicating Who You Are
THE PAST
You control the dialogue – one set of messages to everyone
TODAY
Use your web site to collaborate with your prospect, your buyers and your home owners
The Shift in DesigningDesirable Product
ANGELA HARRISPrincipal
Trio Interior Design
The Shift inDesigning Desirable Product
THE PAST
Build it and they will come is a method of design. Great location is all you need.
TODAY
The customer is much more educated on sustainable design, exterior materials, floor plan layout, functionality of spaces, finish level, technology, and will ultimately demand what type of product is marketable and should be built.
The Shift inDesigning Desirable Product
THE PAST
The highest level of finish is desirable.
TODAY
The customer wants to see efficiency, consistency, and the appropriate finish level for their personal lifestyle. What are the buying patterns of your audience? Does the overall finish package make sense to them?
The Shift inDesigning Desirable Product
THE PAST
Space design is sacrificed for high end appliances and a high level of finish.
TODAY
Livability and functionality of spaces are vital to the success of a project. Taking the time to analyze room sizes, door swings, number of spaces, storage space, and the use of spaces, along with your finish package is a critical path to a successful project.
The Shift inDesigning Desirable Product
THE PAST
We were successful with this floor plan, exterior elevation, and overall product in the past. We should stick with what works.
TODAY
Value added design elements such as extended outdoor living areas, differentiating exterior elements, and technology packages set you apart from your competitor. What are your value added design attributes and do they speak to the location and audience of your project?
Exterior Elevation – Customize Your Home
Livable Spaces – Speak To Your Targeted Customer
Finish Level – Speak To Your Targeted Customer
Outdoor Living – Value Added Attributes
The Shift inCommunicating Your Design
THE PAST
A full set model home is the only avenue of showcasing your home and speaking to your targeted audience.
TODAY
The usage of space and scale is important for buyers to understand. If a model home is not affordable, builders are looking to alternate solutions such as staging. Showcasing your home in the appropriate capacity is important.
The Shift inCommunicating Your Design
THE PAST
Live sales centers with conceptual boards and model vignettes is the only way to communicating the finish level and design of the product.
TODAY
Interior renderings and animated virtual models are a great tool for pre-sale opportunity. Creating the “experience” for the buyer is an important step to reaching and communicating the value of your projects.
Staging a Model
Virtual Experiences
The Shift in How to Promote Your Business
Z. JAMES CZUPORPrincipal
The InterPro Group
The Shift inHow to Promote Your Business
THE PAST
Newspaper adsBillboardsBus BoardsDirect MailTelevisionPublic RelationsOn Site SignageSpecial EventsRadio
TODAY
Most Efficient and Cost Effective
WebsitesTargeted Direct MailTargeted Email CampaignsPublic Relations On Site SignageBlogs/New Media
The Shift inHow to Promote Your Business
THE PAST
Newspaper adsBillboardsBus BoardsDirect MailTelevisionPublic RelationsSpecial EventsOn Site SignageRadio
TODAY
Nice if you can afford it – wasted message reach
Newspaper adsBillboardsBus BoardsRadioTelevision
Six Forces Impacting How You Promote Today
1. Newspapers2. Television3. Internet4. Aging Population5. Emerging Population6. Noise from Issues
– Financial Crisis/Bailout– Housing Downturn News– High Oil/Gas Prices– Auto Industry Bailout– Natural Disasters– 2008 Presidential Election
12 Strategies You Can Use Today
THE NEW MARKETING MODEL 1. Your buyers are GOLD2. Targeted Email, Targeted Direct Marketing –
Multiple “touches”3. Newspaper, TV, Radio4. “YOU” Websites5. Special Events6. Sponsorships
12 Strategies You Can Use Today
THE NEW MARKETING MODEL 7. Sustained PR8. Coordinate BRANDING, RESEARCH, PR, SALES &
MARKETING, INTERIOR DESIGN experiences9. Know your customer and speak your
customer’s language10. Key Messages11. Be an Educator/Advocate12. You are in the business of marketing
The Shift in Your Marketing and Your Sales Teams
JENNIFER GOREPrincipal
Jennifer Gore Unlimited
The Shift inYour Marketing & Sales TeamsHousing Market Conditions THE PAST
HOT marketBuild it and they cameToo much trafficQuality controlEasy moneyBuyers had home equity
Increasing prices
TODAY
Excessive InventoryBuild it and you waitToo little trafficPreserving capitalTough financingBuyers cannot sell
current homeDiscounts
The Shift inYour Marketing & Sales TeamsMarketing THE PAST
No research
SignsNewspaper/magazine
adsWebsiteSmall percentage
of co-opHomeowner parties
TODAY
Never enough research – about buyers!
More signsTestimonials and minimal print
advertisingDynamic e-marketingCourting brokers
Public relations and event marketing
The Shift inYour Marketing & Sales TeamsSales THE PAST
EnthusiasmBack-slapping the competitionNo researchGreeting prospects Taking ordersStated income sufficed
TODAY
PerseveranceWanting to slap the
competitionField researchCultivating buyersArtful negotiationProving buyer’s
ability to buy
The Shift inYour Marketing & Sales TeamsSales THE PAST
No contingent contracts
Minimal broker relationsKeeping up with paperworkCustomer service
TODAY
Assisting buyer to sell current homeNecessity for co-op relationsFollowing upCustomer counseling
SHIFT HAPPENS Shift while you can
before the bad news turns to good.
www.REExpertConsortium.com