OutThink

Unlocking Success in the Competitive Home Sales Market: How Interactive Tools and Incentives Make New Builds a Smart Choice

October 1, 2024
By Tabitha Warren

Architect checking house floor plan for new build on tablet device — _{Architect checking new build floor plan on tablet courtesy of Envato Elements}

For the past few years, potential homeowners have been facing a challenging scenario – soaring mortgage rates that threaten to make their dream of owning a home harder and harder to reach. The low supply of existing inventory due to families not moving from their low-interest-rate homes is making the situation even worse. The financial waves of the housing market have left many potential buyers contemplating their options. Is it still feasible to dive into the deep waters of mortgage loans when the rates are riding too high? Or should they seek the calmer shores and consider a different route altogether?

In this blog, we’ll explore why the alternative path that more and more prospective homeowners are setting their sights on, purchasing a new build home, might be a better option. We’ll also talk about some of the most alluring incentives that home builders can leverage to take advantage of this market. Finally, we’ll talk about the need for home builders to have an effective website with engaging digital tools to set themselves apart from their competitors.

New builds come with some advantages to existing properties. Among these advantages might be the ability to customize the home, energy efficiency, warranty coverage for the initial year of ownership, and lower immediate maintenance costs. Builders that can market these advantages as cost saving advantages might just win prospective buyers from the resale market. What home buyer doesn’t want to save on every aspect possible of homeownership?

So, what home builder incentives are the most attractive to new home buyers? As mortgage loan interest rates soar, there are two stand out incentives. First, closing cost assistance can reduce the financial burden of a new home buyer at the time of closing. This makes homeownership much more attainable to buyers at these heightened rates. The second is interest rate buydowns! Some builders are offering to buy down the buyers’ mortgage rate to get the prospective buyer to a more manageable monthly mortgage payment. From this writer’s logic, this frees the buyer to only need finances for one of the two things themselves. They either need enough money for a down payment or an interest rate buy down if they want a nice low payment for the term of their dream home.

Housing market affordability is so strained that this Fortune 500 homebuilder is offering a fixed 4.25% mortgage rate in some communities
Check out this article from Forbes!

Builders have a myriad of other incentives aside from these two. They can offer base price discounts on specific homes. This usually happens with the first few homes in a new development. They can offer free or discounted upgrades, customizations, or appliance packages. They can also offer to pay HOA fees for the first year. These are just a few of the incentives available that can make new construction more financially attractive than purchasing an existing home.

Never Underestimate the Value of a Good First Impression.”

You’re with me this far. You’re a builder. You offer some of these incentives, but you want to know how to set yourself apart from other builders when marketing to potential homebuyers. Interactive tools may be key in the real estate market. These tools offer a more engaging and informative experience to potential buyers, making it easier for them to visualize themselves in a potential new home. It can also make sure they clearly understand what the properties have to offer.

Don’t believe us? Here’s some statistical proof provided by the Content Marketing Institute:

88% of marketers say interactive content differentiates them from competitors giving them a significant advantage in a crowded market.
93% of marketers agree that interactive content is effective in educating buyers as compared to 70% for static content.
Interactive content attracts 2x the engagement of similar static content.

Those numbers are hard to refute, and they are just some highlights. If you want more information, head over to the Content Marketing Institute’s website to read more of their studies.

Some of the best interactive tools come in a few different categories: visualization, personalization, and lead generation, to name a few. When it comes to visualization, the most useful tools for new home buyers tend to be interactive floor plans, virtual tours, and real-time online booking and scheduling. Interactive floor plans (IFPS) allow buyers to customize layouts and explore different design options. Buyers can visualize a space and personalize it to their needs. This can be a powerful selling point for new construction homes where there are often many customization options.

_{Interactive Floor Plans Top New Buyers’ Useful Tools Lists}

Virtual tours or 3D tours allow a homeowner to experience a home, whether it is real or 3D rendered, from the comfort of their own home. Builders can showcase the home in detail. This is incredibly important in times when physical access may be limited or just plain inconvenient.

Further, websites can integrate features that allow buyers to schedule appointments, book showings, or attend virtual open houses. This is a convenience for both the buyer and the home builder!

Once the potential buyer is interested in a builder, the best interactive tools need to be personalized; this can be achieved with real-time updates on available homes, pricing, and promotions. After all, everything else on the builder’s site hooked this potential home buyer; the builder will want to keep them interested! A great addition after purchase might be online sales tools. Many websites allow buyers to complete the purchase process online, including signing contracts and making payments.

Finally, lead generation might be the final piece of the interactive tool puzzle. Home builders can use website analytics to gain insights into user behavior. A data-driven approach can help them refine their marketing strategies and help them understand what features are most appealing to buyers. They might use this information to improve their sales tactics. Moreover, valuable data about user engagement and preferences can be provided to builders from their interactive tools. When potential buyers engage with these tools, builders can collect information and follow up with targeted marketing and sales efforts specific to individual buyers.

Modern websites can capture leads and integrate with customer relationship management (CRM) systems. Sales teams can use this information to effectively nurture leads and follow-up. The best way to turn a potential buyer into a homeowner is with timely and personalized information. Search Engine Optimization (SEO) and social media integration might be the bow on the package. A well-optimized website can rank higher in search and make it easier for potential buyers to find and explore a builder’s properties. SEO strategies can drive organic traffic to the builder’s site. With the addition of well-thought-out social media integrations, builders can leverage social networks for marketing and referrals.

To sum it up, modern website assets empower homebuilders to provide a superior online experience, engage potential buyers effectively, and leverage data to optimize their sales strategies. By staying up-to-date with the latest web technologies and user experience trends, homebuilders can gain a competitive edge in this competitive home sales market. There is definitely room for new home sales to outpace resale with the proper online strategies!

If all of this sounds a little mind blowing to you, a great place to learn about all of these digital tools, and the corresponding analytics would be from the experts at The Home Builders Digital Marketing Summit, and some of the amazing companies sponsoring and hosting the event.

Tabitha Warren was an Income Tax Accountant for 15+ years. In the first months of the pandemic, she took a chance and re-careered to freelance in Marketing. She currently, and very happily, works with video and photo editing, social media marketing, and now blog writing.

The Importance of a Digital Marketing Ecosystem: A Lesson from Tesla

October 1, 2024
By Jim Sorgatz

When you think of leaders in the electrical vehicle movement, I believe even the Elon haters would have to give props to Tesla. They have moved into a position of power that is rare. One of the chief reasons for this is their self-contained ecosystem. From batteries to auto parts to charging stations and software, Tesla is in control. There is little that is outsourced.

This streamlined approach makes them significantly more profitable than other auto manufacturers. They also have one of the most powerful computer systems in the world, enabling drivers to control everything from a sleek touchscreen. Tesla also gathers data from their vehicles. Paired with AI, the data from every mile driven gives them the lead in autonomous driving. No one knows when robo taxis will make their grand entrance, but the probability of it happening in my lifetime is exciting!

*_{Tesla Touchscreen Controls Adobe Stock}*

The Ecosystem

What does all this have to do with homebuilder sales and marketing, you ask? It all comes down to the ecosystem. While some builders use individual vendors for renderings, interactive floor plans, print materials, etc., savvy builders understand the benefits of working with a full-service provider like Outhouse. In addition to digital marketing assets like interactive floor plans (IFPs), interactive site plans (ISPs), renderings, virtual tours, visualizers, animations, and digital kiosks, we also have an in-house print and signage shop and a full-service computer-aided design (CAD) department. Clients who use all our services benefit from significant time and cost savings. When you make changes in CAD, those edits carry across our entire ecosystem.

Our “Touchscreen” – the Interactive Control Center

Like Tesla, Outhouse now has a slick “touchscreen,” our new Interactive Control Center. With the launch of this intuitive administrative back end for our interactive platform, we are setting the stage for a new future in interactive control. A few of the features include:

A new look with upgraded graphics for ease of use and improved navigation
A clean template with easy-to-see project permissions
Choice between light and dark themes, similar to our IFPs
The ability to personalize by setting your home page – perhaps a specific community or your interactive floor plan list
No more pagination. The plan list is fluid. While not a huge issue for builders with only a few IFPs, builders with dozens will appreciate this time-saver
Seamless movement between IFPs and ISPs in the same community. No more toggling between lists of IFPs and ISPs
Simplified self-serve reports and the ability to export data in Excel, CSV, JSON, and XML
A search box and filters to make it easy to find what you are looking for.

Also coming soon to the Control Center are a dashboard, and everyone’s favorite – widgets. Everything is designed to simplify the management of your interactive tools and data collection from potential clients.

*_{Tesla’s Super Chargers in a line Adobe Stock}*

Integration

Integration makes life easier. Ask the owners of EVs manufactured by companies other than Tesla. There’s a reason the most prominent auto manufacturers are signing contracts to access Tesla’s Supercharger network. Constructed in secret, Tesla unveiled their first six Supercharger stations in 2012. From there, they have continued building a Supercharger network nationwide. They understood the need for a strong network of Superchargers for EVs to compete with gas-fueled vehicles. Tesla also fixes and improves their cars simply by issuing a software update. Their ecosystem is fully integrated, from construction to batteries to software to charging stations.

In recent years, Outhouse has enhanced our interactive products to achieve full integration with each other. Starting with our interactive site plan, your home buyers can click on a lot to reveal renderings of the available homes. Click on a rendering, and it opens an interactive floor plan. While engaging with the IFP, home buyers can also view virtual tours and select colors and finishes with interior and exterior visualizers. All of our interactive tools can be neatly packaged into an interactive kiosk for potential homebuyers to peruse while at your sales center.

Before you start your next community, consider how your company might benefit from implementing a complete interactive ecosystem rather than just a few pieces and parts. Today’s home buyers are shopping online; your website should make it easy for them to decide your homes and communities are the right fit for their families. As the EV market grows, you may also want to consider where to place a Supercharger!

10 Lessons Ted Lasso Would Have for the Home Building Industry in 2023

October 1, 2024
By Tabitha Warren

*This image was taken from the official press kit for “Ted Lasso,” distributed by AppleTV+*

The final season of Ted Lasso was loved by some and flopped for many. I was one of the people who was a tried-and-true fan in the same manner that I’m a fan of the home building industry. Ted wants us to be better, happier, more hopeful people. The home building industry wants people to find a home for their family and build happy, hopeful lives there. They want us to continue to “believe” in the American dream and a place to call our own. On that note, I believe that Ted Lasso has a few more lessons for home builders. But this time around we’ll take a few quotes from the entire cast.

The series finale of Ted Lasso shows the team comes together; each has a piece of the iconic “BELIEVE” sign. They put it together. It’s ripped, it’s tattered, but it’s all there. It’s beautiful. It stands for something.

When I saw it, I saw the home building industry. It has had a several-year struggle from materials shortages to housing shortages and long waits to labor shortages to skyrocketing interest rates. Like A.F.C. Richmond, it often feels like the housing industry can’t get a win.

Many of us in the housing industry just need to take some of the Lasso lessons and above all remember to “Believe in Believe.”

You guys are more distracted than a bunch of cats playing laser tag.”
Ted Lasso

Focus on Relationships: The key point here is focus. One of the lessons from Ted Lasso is the importance of building strong relationships with clients, customers, and colleagues. In season 3, we see Ted continue to prioritize his connections with the team and work to build trust with new players like Dani Rojas. With these fictional characters as well as in home building, focus on relationships creates trust and confidence among all parties. New homes are significant investments, so home buyers need to believe builders and contractors will deliver quality work within agreed-upon terms.

Well, I don’t want comfort.”
Roy Kent

Embrace Change: The willingness of homebuilders to adapt and embrace new technologies and building practices is critical to staying ahead of the curve. By adopting new technologies, trends, and practices, home builders can offer better homes, enhance customer satisfaction, and position themselves for success in an ever-evolving market. Ted Lasso is all about embracing change and adapting to new situations. In the final season, A.F.C. Richmond undergo some significant changes as they adjust to new coaching and playing styles. This inevitably leads them to advance to the Champions League. Embracing change can make many of us champions in our own rights.

Unless it’s Animal Crossing. That sh! t’s ‘clucking’ soothing.”
Isaac Macadoo

Communication is Key: Effective communication is essential in any industry. Home builders should prioritize clear and open communication with clients and trade partners to ensure everyone is on the same page. Ted Lasso is a shining example of effective communication. Ted and the team continuously work to improve their communication on and off the field. Communication takes many different forms, and sometimes we all need to calm down and make sure we are playing from the same rule book.

Right now, y’all brains are basically in London in 1857. They’re blocked up by other people’s dookie.”
Ted Lasso

Prioritize Customer Experience: Ted Lasso understands the importance of providing a great customer experience, and builders should too. Ted works to create a positive and supportive environment for the team. He often takes them on strange and winding journeys if it will result in them understanding the process better. Ultimately, this helps them perform better on the field. Similarly, home builders should prioritize their clients’ experience, from the initial consultation to the final walkthrough. That’s the idea of the home buyer journey.

I’m a work in prog-mess.”
Ted Lasso

Emphasize Quality: In season 3, we see the team working to improve their skills and techniques to produce better results on the field. Ted Lasso is known for his attention to detail and emphasis on quality, which should also be a priority for home builders. Prioritizing quality materials and craftsmanship to ensure projects stand the test of time is a good business practice. Things don’t always have to be perfect, but we in the homebuilding industry should strive to improve every day.

Can I say a bad word? I think you’re being stupid.”
Phoebe (Kent)

Be Authentic: Authenticity is a fundamental aspect of successful homebuilding. It establishes trust, strengthens relationships, and fosters customer and trade loyalty, all of which are vital for sustained success in our competitive market. Authenticity benefits the homebuilding business and ensures a positive and fulfilling experience for the buyer who entrusts home builders with their dreams of a new home. Ted Lasso is all about being true to yourself and your values, which often involves a lot of honesty.

“Time is a construct, like gender and many of the alphabets.”
Zava

Embrace Diversity: Diversity and inclusion are essential themes in Ted Lasso, and these values also play an important role in new home construction and sales. This season, we see the team welcome new players from different backgrounds and work to create a more inclusive environment. Home builders also benefit by striving to gather diverse and inclusive teams to foster innovation and creativity. Like Ted Lasso, homebuilders will find that different viewpoints and experiences enable them to innovate, problem-solve, and attract a broader group of homebuyers.

We are now one. There is no we; there is no you; there is only we and us and the ‘wenus.'”
Zava

Collaborate: Collaboration is vital in any industry, including home building. Prioritizing collaboration with contractors, designers, and other stakeholders helps builders ensure projects are completed on time and within budget. Partnerships also enable builders to manage complex projects, maintain quality control, creatively innovate, and manage costs. I think Zava said it all.

I’ve had more psychotic episodes than Twin Peaks.”
Ted Lasso

Be Resilient: Ted Lasso is all about resilience and overcoming adversity. In the final season, the team faces some tough challenges, but they bounce back and come out stronger in the end. Home builders should also be resilient in the face of setbacks and challenges and work to solve problems as they arise. In the past year, we have faced economic uncertainties such as rising interest rates, inflation, and fluctuating housing demand. Being resilient allows home builders to adapt to these changing economic conditions.

I look like Ned Flanders is doing cosplay with Ned Flanders.”
Ted Lasso

Have Fun: Last but not least, Ted Lasso reminds us to have fun and enjoy the journey. The boys at A.F.C Richmond work hard but also take time to enjoy each other’s company and have fun on and off the field. Home builders should also remember to enjoy the process and take pride in their work while finding ways to have fun along the way.

The Mayfair – by Hampstead Living with Believe sign added

The wonder of Ted Lasso comes from within the process of growth and connection. It doesn’t have anything to do with wins and losses. Just like the continued beauty of home building should be connections and community. Connections to quality business partners and connections to the families we come together to help. We are building a community on so many levels. Community of like-minded builders and vendors. But most of all, communities of new homeowners will be proud to have bought a home from us and will want to come back the next time they purchase. I think we all need to take notes from Ted Lasso and Believe in Believe.

Code Cracking: Unlocking the Power of Analytics in Interactive Floor Plans

October 1, 2024
By Stuart Platt

You implemented Interactive Floor Plans (IFPs) on your website months, if not years ago. Maybe you have seen a report that your IFPs are experiencing a lot of visits which is fantastic; but what else can you find out? You ask yourself, what other information can I gain from Google Analytics and how can I take advantage of this data?

With Google Analytics 4 or ‘GA4’ replacing the traditional and familiar Universal Analytics (UA) platform, your second question may be, what is different, and how will it affect me?

Information Gathering

First, to gather data from your IFP’s, you need to ensure your IFP provider allows access to this data. Some, but not all, IFP providers already allow builders access to reports showing data on basic information like demographics, time on site, which plans are getting the most views, number of views, etc. However, there is little to take advantage of with this data. It is critical to work with IFP providers like Outhouse, LLC, who allow access to deeper details that provide actionable value. These deeper details include, but are not limited to:

How users found your website (clicking an ad, social media, search engines, etc.)
Popularity of communities and plans.
Popularity of specific options selected.

With this information, your Online Sales Counselors can guide homebuyers to a home that best fits their needs. Your marketing department can better budget how and where ads are most effective in gaining new traffic. Your plan development team gets a better understanding of what options are most valued by homebuyers.

Google Analytics 4 – What’s New?

GA4 may improve reports for builders in a few areas. Events are a great way to track meaningful actions on your website. One difference between Google’s UA and GA4 is that UA would count the number of ‘hits’, times a specific option is clicked and viewed. We discovered almost every home builder will find their optional Enlarged Shower in Owner’s Bath is clicked and viewed more so than any other option. From that data you might think it is the most purchased option, but that isn’t always the case. It only means it is clicked more than any other option, but not always kept. With GA4 you can more easily drill down to find what options are clicked and KEPT, giving you more accurate data on the most popular options.

Another example is that Outhouse’s Save Plan feature asks for a person’s Name, Email, and Phone Number to save their plan. However, the phone number is made optional because GA4 shows by requiring buyers to enter a phone number, many would discard saving their plan altogether. With this information, Outhouse adjusted their Save Plan feature to make phone numbers optional. In doing so, this dramatically increases the number of saved plans, creating more hot leads for builders to pursue.

Interactive Floor Plans can be the most powerful tool on your website to engage homebuyers and generate leads. When builders utilize an IFP platform that provides access to deeper analytics, they are truly gaining a better understanding of their buyers to take meaningful actions in selling more homes.

About the Author: Stuart Platt is Managing Partner at Outhouse LLC, an industry leader dedicated to providing an extensive and integrated menu of products and services to production home builders across the world. These services include but are not limited to Architectural Drafting, 3D Renderings, Virtual Tours, Animations, Interactive Floor Plans, Interactive Site Plans, Interactive Sales Office Displays, Interior and Exterior Visualizers, Graphic Design, Commercial Printing, and more. Outhouse is the ONLY company in the nation providing all of these services in-house.

How Photoreal Renderings & Virtual Tours Sell Homes

October 1, 2024
By Jim Sorgatz

Marketing insights from photos of an expedition to Antarctica

Black and white photo of two sets of jagged rocks forming a saddle. Old fence posts in the foreground. Reminiscent of a moonscape. — *Deception Island – the caldera of an active volcano. Although taken in black and white, this photo accurately represents the starkness and other-worldly feel of the island.*

With even the smallest home builders moving heavily into 3-D photoreal renderings, virtual tours, and animations, I thought it might be interesting to revisit this post from a year ago. This update includes additional information on rendering and virtual reality (VR) tools, plus new images of the latest photoreal renderings, and links to virtual tours. This also is one of my favorite posts, combining my career with my favorite pastime – travel.

A bucket-list trip to Antarctica is one of the most incredible and inspirational journeys. Seeing thousands of penguins and other animals, yet not a single plant anywhere is mind-boggling. The football field-sized+ icebergs, especially the tabular varieties, are astounding. And the monochromatic landscape is other-worldly. I came away with a desire to take better care of our planet, a greater appreciation of finding peace in solitude (this place is desolate!), and the realization I can enjoy summer when the high is just above freezing.

Colorful kayaks and kayakers in water with floating bits of ice, and dark clouds overhead. — *Kayaking in Neko Harbor*.

Penguins surrounding bright orange duffel bags on a large rock, set on a rocky beach with snow in the background. — *The inquisitive penguins.*

I also gained some key marketing insights. A recent post, Rules of Engagement, discusses the powerful lesson we learn from penguins, who are the stars of the Antarctic show. They captivate visitors as they gather stones to build nests, guard their chicks, run en masse along the beach to dive for food, and shuffle around checking out us humans. Likewise, digital marketing tools, including Interactive Floor Plans, Interactive Site Plans, and Visualizers, play a starring role on builder websites and are integral to the new home journey. Captivating and engaging homebuyers, digital tools create strong emotional connections and lead to an increase in closing sales.

A lesson also came on the importance of color and texture and how it relates to visual marketing tools like renderings, virtual tours, and animations. Against a backdrop of grey and white, the most captivating photos include glimpses of vivid color, most often provided by humans. Pops of red, orange, and yellow on ships, clothing, and kayaks look stunning in the barren landscape.

Bow of a ship with red trim cracking a giant ice sheet. — *Cracking a massive ice sheet in Wilhelmina Bay. Note the power or red.*

An expedition team, wearing bright orange and yellow jackets, on an inflatable Zodiac boat cruising through water with chunks of ice — *Traveling by Zodiac in the Antarctic Sound.*

Colors from nature include teal from glacial ice; clear blue skies; orange, pink, red, and purple emanating from the stunning midnight sunsets; bits of orange and yellow on penguin beaks, necks, and feet; and an occasional rainbow. That’s about it! What really makes Antarctica so dramatic are the textures. Smooth snow, jagged rocks, fluffy clouds. Constantly changing due to weather, they overwhelm the senses.

A black ship with red and white trim next to a giant, triangular, blue-tinted iceberg. — *Our ship, anchored next to a massive, blue-tinged iceberg.*

Blue icebergs floating in front of a rocky mountain with snow. Clouds overhead, and reflecting in the water. — *Cool blue on an iceberg and purple-tinged skies add rare bits of natural color in Neko Harbor.*

Bright orange sunset over the ocean against a backdrop of grey clouds. — *The most color at any one time, a vibrant sunset, sometime around midnight.*

And that brings us to the importance of photoreal renderings, virtual tours, and animations in new home sales. Colors and textures appeal to everyone. They move and motivate us, playing an essential role in marketing strategies. Photoreal imagry brings colors and textures to your pre-built homes. It gives potential buyers a realistic view of your homes, often generating sales before a model is ever built. 3-D Renderings are the first place to start. We still see builder websites with flat, black/white stick drawings. Yuck! These in no way engage the senses like a proper photoreal rendering.

*Photoreal rendering for Winslow Homes – daylight.*

*Same elevation for Winslow Homes – a dramatic dusk shot.*

Even more engaging are virtual tours and animations. What’s the difference? Virtual tours, like the ones for DeLuca Homes and KLMR Homes shown here, are user-controlled. Viewers click into a room and then turn the image for a 360° view. Animations, on the other hand, are video tours. Both bring your “model homes” to buyers around the world. Virtual Tours tend to be the most popular as they are more cost-effective, and most users enjoy the hands-on experience.

*Invite your buyers to discover your homes with virtual tours. Click the DeLuca Homes kitchen to explore their Mayfair plan*.

*A stunning home with spectacular views. KLMR Homes Bellos at the Summit.*

People love to explore and engage. These are the reasons many of us enjoy discovering the world. When it comes to purchasing a new home, your buyers also want to personalize. By implementing digital and visualization tools on your website, you invite homebuyers to do all three. Contact Outhouse today to learn more about our interactive floor plans, interactive site plans, virtual tours, animations, visualizers, and renderings, plus our interactive kiosks, which incorporate all.