OutThink

Know Your Homebuyer Audience

October 1, 2024
By Jim Sorgatz

Are you surprised by the new home construction trends in your own city?

Guess which house is the newbie?!

Having been in the industry for nearly 30 years, it is not often that I am surprised by trends in new home construction. The goal is to sell to anyone who financially qualifies. And, in these times of elevated interest rates and home prices the buzz is all about affordability, which typically translates to smaller homes. So, I am shocked to see the newest homes being built in my “affordable” neighborhood are 50%+ larger and significantly more expensive than my home that was built in the fall of 2022. The families shopping for homes right now are, apparently, looking for space, and have the means to afford a bigger house. And I guess that makes sense. Although there genuine efforts by cities and builders to create affordable housing, with a median price of $430,000 nationally per realtor.com, there really aren’t many homes that are affordable right now for first-time homebuyers. This hammers home the importance of knowing your core audience, building for them, and marketing to them appropriately.

There are many builders who do this well and adapt to the changing environment. One example is Arizona based Meritage Homes whose mission today is, “To design and build homes that are innovative, built with care and superior craftsmanship, which deliver enduring value.” Contrast that with their mission a couple years back, “To build move-in-ready affordable homes for entry-level and first move-up buyers,” and you can see the evolution to better reflect the current new home market.

How can you be sure you are targeting the right audience? Begin with a review of your overall marketing strategy. Do your website, sales offices, and print marketing appeal to the potential buyers you are attempting to attract? Although first-time and luxury home buyers are both seeking out their dream homes, the marketing for these two distinct groups looks very different. This is where consultation with marketing experts like Denim Marketing, Blue Tangerine, Adlanta Creative, and Bokka Group to name a few, can be highly beneficial.

Next, review your digital marketing tools, and upgrade them if necessary. If you are still using static floorplans and stick renderings, think again. Interactive floor plans, renderings, virtual tours, animations, and visualizers all play an integral role in engaging homebuyers and selling homes.

Interactive Floor Plans (IFPs) have universal appeal, and every builder website should feature them. Buyers of all demographics love to select structural options and customize their living spaces with the interactive furniture planner.

Outhouse’s new colorized Interactive Floor Plan

Quality renderings are essential for all builders as well. Black and white stick drawings are never a good option, even for the simplest of homes. Standard 3D (Outhouse Bronze and Silver) renderings are perfectly acceptable for homes at lower price points. For move-up and luxury homes, you will want to implement 3D photoreal renderings (Outhouse Gold). Luxury and custom builders may want to opt for Platinum renderings that can be further enhanced and customized.

Should your budget for digital marketing tools be a bit larger, investing in animations and virtual tours pays off in two significant ways. First, they enable homebuyers to digitally explore your homes from anywhere. Second, both are available at a fraction of the cost of constructing a model home. Your target buyer should be the top consideration when choosing which format to offer. Younger buyers prefer user-controlled virtual tours. Buyers over 50 typically gravitate towards video format animations.

Visualizer’s allow home buyers to customize interiors and exteriors

Another online tool appealing to home buyers at all price points is the Visualizer. With both interior and exterior versions available, buyers can mix and match colors and finishes to achieve the desired look and feel. The visualization process is so much easier than making selections for an entire house based on one-inch paint chips and tiny floor, counter, and cabinet samples. It also removes some of the pressure and stress from the design center visit.

Here are a couple more ideas to help you connect with your appropriate audience:

Elevate your brand with distinguished print marketing. Consider the hotel industry when investing in print—the swankier the property, the more excellent the print collateral. The manager of the high-end hotel presents you with a “folio” at checkout, not simply hands or emails you a bill. Although print appeals greatly to buyers in the luxury home market, even younger homebuyers like to walk away from the sales center with a brochure featuring their preferred floor plan and elevations at a minimum. In today’s digital world, people still appreciate a tangible marketing piece when making one of their biggest life purchases. Why not present them with something sophisticated or fun, and memorable?

A great print piece makes a lasting impression!

Today, the most progressive builders are transforming their websites with artificial intelligence (AI) to better understand and target their audience. Like that provided by openhouse.ai, AI offers home buyers a personalized shopping experience and predicts where your unique market is going with more accuracy.

So take some time during this evolving housing market to understand your homebuyer and determine if your current marketing strategy is meeting their needs. If not, consider working with online marketing experts to determine which digital and on-site tools will move the needle most with your target audience to increase your new home sales.

Growing New Home Sales By Casting the Widest Net Possible

October 1, 2024
By Jim Sorgatz

Shortly after moving to Blaine Washington, a small city sitting right on the United States and Canadian border, my spouse suggested we head to the Night Market located in Richmond, a suburb of Vancouver. I happily went along knowing nothing about this event other than it ran from 7:00 PM to Midnight, and and there would be food vendors. I was hoping the food might be better than the the typical state fair, and I wondered if the market would look a bit like a renaissance fair with turkey legs and all. When we arrived I saw this!

Night market packed with people between two rows of food booths. — The Richmond Night Market

There are more than 600 food booths here, and 90%+ of them are Asian. A quick search on Google and I learned Richmond is home to 230,000 people, three quarters of whom are Asian Canadian. The food was amazing, and I’m ready to fight the crowds again this summer. Having never been to Asia, I finally had a taste of the infamous night markets that friends tell me offer some of the tastiest delights.

In the stretch of the Pacific Northwest between Vancouver and Seattle, there are significant populations of immigrants from around the globe. China, Japan, Korea, India, Mexico, Europe, Ukraine, Russia, and many more. In my neighborhood in Blaine which sits right on the border, we have residents from both Canada and the U.S. as many families lives take place in both. This is often due to marriage, jobs, or immigration status. Peace Arch state park which is an open space between the two countries was one of the only places along the border where families could meet during the pandemic. I love taking the pups there, and jokingly warn them not to say “Eh” when we are on the Canadian side.

What does all this have to do with home building? North America is a melting pot of immigrants and cultures. Unless you are Native American, most of our families traveled from other countries to get here. And as more immigrants arrive, put down roots, and start their own families, home builders may need to look a little differently at the design, sales, and marketing of new homes. Just as men and women, families, singles, and various generations seek out different amenities in new homes and neighborhoods, people from various cultures often have unique wants and needs as well. North America also has home builders founded by immigrants including Outhouse clients Couto Homes in Texas where the Couto family hails from Portugal, Trico Homes in Alberta founded by Wayne Chu who came to Canada from Hong Kong, and K. Hovnanian Homes whose founder is from Iraq. There are also builders owned by foreign entities like Woodside Homes (Sekisui House), and Stanley Martin Homes (Daiwa House USA).

What it all boils down to is, like the diversity within our industry, the pool of homebuyers is vast. Casting the widest net possible to reach buyers is essential for sales. And that means thinking outside the proverbial box, and diversifying our sales and marketing strategies.

To continue this conversation, On Tuesday, May 21, 2024 at 11:00 AM PST, Outhouse invites you to join us for a webinar featuring Magda Esola from Brookline Homes, Ingrid Prince from Shared Drive, and Safiyyah Siddiqui from DHS Realty. Coming from varied backgrounds they will share their thoughts and experiences on selling homes with diverse buying groups. If you miss the webinar, you will find the program posted on our YouTube Channel following. REGISTER TODAY!

From Income Tax Accounting to Web Design: Navigating Career Shifts and New Opportunities

October 1, 2024
By Tabitha Warren

_{Accounting Female to Video Editing Female Courtesy of Canva Pro}

During the global pandemic, many of us found ourselves reevaluating our career paths, seeking new opportunities, and embracing change in unexpected ways. My journey from being an income tax accountant to venturing into the realms of web design and social media coordination is a testament to the transformative power of adaptation and seizing new avenues for growth.

As a former income tax accountant, I never imagined myself delving into the creative realms of web design and digital marketing. Honestly, web design was my husband’s area. However, the pandemic presented unforeseen challenges and opportunities that compelled me to explore alternative career paths. With the traditional job market feeling dangerous to an immunocompromised woman, I decided to leverage my skills in finance and analytical thinking to venture into the digital landscape.

One of the most rewarding aspects of this transition has been the opportunity to collaborate with small businesses and the people that run them, particularly in the realms of homebuilding and trail racing. These industries, often operating on tight budgets and with limited digital presence, were initially hesitant to entrust their online presence to a relatively inexperienced designer and marketer. However, through open communication, dedication, and a willingness to learn, we embarked on a journey of growth and success together. Three years later, we continue to work together and implement new technologies and data to strengthen their strategies.

A reader might be thinking, “Homebuilding and trail racing? What do these two markets have in common? How did this woman end up working in two markets that are so completely different?” The truth is twofold. First, I was a little bit lucky. The first project, the home builder marketer, fell in my lap through social connections. The second project, the trail race event coordinator, came by word of mouth after an employee from the home builder marketing company admired what I was doing and recommended me to a friend. But second, the heart of the businesses was the same. Both businesses want to help customers live happier, healthier lives. To achieve this, they needed to generate leads. They need to get their service offerings seen online.

Small and medium-sized homebuilders, in particular, stand to benefit immensely from embracing digital transformation and investing in a robust online presence. A well-designed website serves as the virtual storefront, offering a platform to showcase past projects, highlight expertise, and engage potential clients. Moreover, leveraging analytics and SEO practices can significantly enhance visibility and attract qualified leads, ultimately driving business growth and expansion.

Many people, new to web design and social media believe that having a digital presence will be cost prohibitive, but that isn’t true. The addition of a website and social media often pays for themselves. Especially, if you find a designer or coordinator that is the right fit for your company. Don’t be afraid to outsource to a designer or marketing firm that can help you grow.

According to a survey by Clutch, 46% of small businesses still do not have a website, representing a significant untapped market for digital growth. Although many small builders have a website, some include little more than a logo, a couple of pictures, and contact info. By harnessing the power of web development and digital marketing, homebuilders can differentiate themselves in a competitive landscape, reach new audiences, and establish credibility in the industry.

_{Outhouse – The outsource Hub for Home Builders Home Page}

In my experience, working closely with homebuilders and race coordinators to develop and optimize their websites has been immensely gratifying. By incorporating user-friendly design elements, compelling content, and strategic SEO tactics, we have witnessed tangible results, from increased website traffic to higher conversion rates. Moreover, the ability to track and analyze data enables us to refine our strategies continuously, ensuring maximum ROI.

As we navigate an ever-changing post-pandemic world, the importance of digital presence and online visibility cannot be overstated. Small companies that embrace innovation and adaptability stand poised to thrive in this evolving landscape. By partnering with skilled web developers and digital marketers, small businesses can harness the full potential of the digital realm, driving growth, and success in the years to come.

My journey from income tax accounting to web design symbolizes embracing change, adaptation, and accepting new opportunities. By collaborating with small businesses, I have not only found success but also forged meaningful partnerships built on trust, creativity, and mutual growth. As I look to the future, the potential for innovation and transformation in the digital sphere is limitless, offering boundless opportunities for those willing to seize them.

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, website building, and now blog writing.

Tackling the Home Building Labor Shortage

October 1, 2024
By Jim Sorgatz

Two Innovative Organizations Making Strides In Workforce Development

One of the greatest challenges facing the home building industry in recent years is a labor shortage. With more and more kids going to college, and the tightening of work visa programs for immigrants, recruiting skilled workers has been a full-time job for many home builders and trade contractors. But the tides may be turning. A recent article in the Wall Street Journal, “How Gen Z Is Becoming the Toolbelt Generation,” observes that more young workers are going into trades. A few reasons for this are disenchantment with college, rising pay, and new technologies making careers in building much more exciting.

Home builders are also making strides in workforce development. I’d like to focus on a couple of innovative programs that are demonstrating success in this arena.

Jim Sorgatz, Outhouse VP Marketing holding The House That She Built book, flanked by Natalie Miles, owner of Natalie Miles Design, and Kristi Allen, owner of Woodcastle Homes — Natalie Miles, Owner – Natalie Miles Design, and Kristi Allen, Owner – Woodcastle Homes, with Jim Sorgatz, Outhouse VP of Marketing at a PCBC Professional Women in Building Bruncheon celebrating the success of The House That She Built

She Built Foundation

First is the She Built Foundation, an organization whose mission is to inspire girls to become the next generation of builders. It all started with a little book called The House That She Built, written and illustrated by Mollie Elkman and Georgia Castellano of Group Two. Published in 2021, this book has captivated thousands, inspiring a mostly women-powered movement, bringing the book and accompanying activity book to schools, libraries, and Girl Scout troops across the U.S. To make an even greater impact, the She Built Foundation was introduced to attendees at the 2024 International Builders Show. Did you know that 41% of the U.S. construction workforce is retiring by 2031? The need for construction professionals is great. Women currently only make up 11% of our industry. This organization serves a critical role in educating young girls (and boys) on the benefits of a career in building.

Home Building Academy

A little lesser known is the Home Building Academy located in Phoenix, Arizona. This initiative was launched in 2023, by Home Builders Care, the charitable arm of the Home Builders Association of Central Arizona (HBACA). For students in this 9-week construction training program, tuition is fully paid, and they leave with certifications in carpentry and electrical. In the first four weeks of the program, students learn the basics of construction including:

Reading a tape measure
Understanding construction documents
How to build, level, plumb, and square
Using hand and power tools
OSHA 10 safe working practices

Following the classroom introduction, students move to hands-on training in carpentry or electrical. Check out the informative video on the Academy website to learn more.

Students at the Home Building Academy practicing construction and electrical skills, against a backdrop of wood framing. — Students at the Home Building Academy practicing construction and electrical skills

Support for programs like this is crucial. Ed Brady, CEO of the Home Builders Institute, tells us we need to replace 2.1 million jobs in the next few years. We have a 2-3 generation shortage of workers, and many longtime building professionals are aging out.

One way you can support the Home Building Academy is by drinking wine and craft beers, and eating some delicious food! Coming up on Saturday, May 11, 2024, is the return of Builders Uncorked, an event I helped launch during my tenure at the HBACA. This fun evening features stations with a unique selection of wines from around the globe. All funds raised go to train the next generation of home builders.

Congratulations to HBACA CEO Jackson Moll on the success of the Home Building Academy. And cheers to Lisa Rugloski, Stratton Hickcox, and the rest of the HBACA team who are leading the charge to raise funds through the Builders Uncorked event. With Phoenix Metro being one of the fastest continually growing areas in the country, the Home Builder Academy’s role in training workers for the future is vital to the home building industry.

Optimizing the Design-Market-Sell Continuum: Tips for Home Builders – Part 2

March 28, 2025
By Jim Sorgatz

In the dynamic world of homebuilding, a term that often echoes through the corridors of innovation is “value engineering.” Investopedia defines it as a strategic method aimed at delivering essential project functions at the minimum possible cost. This approach champions swapping out materials and methods for more cost-effective alternatives while maintaining the integrity of functionality—and, we’d argue, quality, too.

At Outhouse, this principle is at the heart of our Design-Market-Sell methodology. Our suite of services—from drafting to visual aids and digital innovations to print solutions—caters to builders across the spectrum. Yet production home builders crafting anywhere from 30 to 3,000 homes annually, stand to gain the most from our holistic approach. By integrating our seasoned Computer-Aided Design (CAD) expertise, builders can forego the hefty expense of maintaining an in-house drafting team. As our CAD wizards work their magic, our graphics and rendering teams get cracking on interactive floor plans, site maps, virtual tours, and much more, paving the way for a seamless transition to print media and sales office displays. This cohesive strategy not only accelerates your market entry but does so with significant cost efficiency. And therein lies the secret to mastering the Design-Market-Sell continuum.

In the first chapter of this series, we unpacked the foundational tools every builder needs to design, market, and sell new homes. Now, let’s dive into the digital realm that captivates homebuyers and enriches their purchasing journey.

Crafting Emotional Connections: The Power of Interactive Floor Plans and Site Maps

Outhouse has been at the forefront of Interactive Floor Plans (IFPs) and Interactive Site Maps (ISMs) for over two decades, boasting a portfolio that’s as robust as it is innovative. Optimized for mobile use, these tools work like a dream on any device, aligning perfectly with the preferences of over 70% of today’s homebuyers.

Erin Kearney, VP of National Accounts

Erin Kearney, our VP of National Accounts, emphasizes the importance of understanding buyer needs and adopting a personalized sales narrative. The ability to swiftly capture and analyze consumer preferences sets a builder apart in a market brimming with competition. IFPs and ISMs are more than mere marketing gimmicks; they are bridges to potential buyers’ hearts and minds, allowing them to visualize and tailor their future homes. This emotional engagement is akin to the bond formed during a car’s test drive, transforming a potential purchase of “your house” into “my home.”

Moreover, ISMs offer a comprehensive view of available lots, linking directly to elevations, IFPs, virtual tours, and more, thus streamlining the journey from lot selection to home customization.

Marrying market insights with interactive tools is critical to truly excel in sales. These technologies elevate customer interaction and deepen the emotional bond with their future homes, positioning builders as pioneers in their field.

Sketch of Marilyn Monroe against a wood plank backdrop with the words, "Helpful Tips - Interactive"

Maximizing Engagement with IFPs and ISMs

Success with IFPs and ISMs hinges on precise construction documents and strategic website placement. Marcy Smith, our incredibly talented but media-averse Graphic Department Production Manager, shares invaluable tips for optimizing these tools:

Ensure clarity and accuracy in your CAD files before engaging with a digital tools provider. Autodesk offers a free ‘DWG TrueView’ for this purpose.
Incorporate a PDF version of your CAD files for ease of reference.
For IFP projects, detailed CAD files minimize back-and-forth, saving time and resources.
Clearly delineate desired lots for ISMs, especially in master-planned communities, to avoid unnecessary costs.
The placement of these tools on the website is crucial; they should be prominently displayed for easy access by potential buyers, enhancing engagement and site retention.

Outhouse partner Stuart Platt

Virtual Reality: The Frontier of Digital Engagement

Virtual Reality (VR) stands as the latest marvel in digital homebuilding tools, offering virtual tours, animations, and visualizers that transport the model home experience to buyers worldwide. Stuart Platt, an Outhouse partner, advises:

For interior VR projects, consider selecting from Outhouse’s extensive library of interior designs to save on costs, unless custom designs are necessary.
Utilize color and material visualizers to give buyers a comprehensive view of their customization options, though it’s wise to limit exterior color schemes to maintain community aesthetics.

As a quick VR refresher: Virtual Tours are user-controlled tours – buyers click from room to room. Animations are essentially a video tour. And, Visualizers are customization tools that allow buyers to select options, colors, and finishes whether it be interior cabinets and countertops, or exterior roofing, stone, and siding.

In Summary

The key to optimizing the design-market-sell continuum is to work with a sole provider like Outhouse – the outsource hub for home builders. Whether launching a new community or seeking innovative cost-saving strategies, Outhouse is here to guide you through optimizing your design, market, and sell process. Reach out today to explore how we can transform your homebuilding journey.