6. Construction Updates
Once a house is under contract, builders must communicate with the Realtor about what is happening on the site, adds Richard. “Set construction milestones and expectations and advise them ahead of time: The hole is being dug tomorrow, the sticks start going up this week, the kitchen cabinets are being installed.”
Realtors often are reluctant to bring clients to a job site, says Richard, who worked for a public builder before becoming a Realtor. He thinks this is based on an unspoken fear that they will be embarrassed in front of customers because they don’t know much about the construction process. He urges builders to work with Realtors to educate them on how houses are built so that they are comfortable on site.
7. Buyer Preferences
Real estate agents, who work intimately with their clients sometimes over decades-long periods, often have a better idea than builders what buyers are looking for. Savvy builders use them to follow local statistics and trends, and to understand the demographics of the market. For instance, they can help with design and layout decisions before a house is built.
“Are you sure that theater room is going to go over with your clientele?” asks Fields. “You may think people want a theater room versus a four bedroom, but if you are selling in an area with good schools, four bedrooms may be far more important to the buyers.”
Failure to consult with a Realtor led to major problems for a developer in Christine DelVecchio’s Ithaca, N.Y., market. The spec homes in the development had a floor plan flaw that could have easily been averted: the first-floor master bedroom was located directly off the main entrance to the home and contained an oddly shaped angled wall that made bed placement challenging. “It was just badly designed for the flow of the entire house,” she recalls. In addition, the houses were not priced correctly for the lot size and location. An experienced Realtor could have researched homes in that area and suggested a more appealing lot size and floor plan, she points out.
“Only after the spec house was built did they reach out to the Realtor community after it had taken several years to sell lots/homes in that location,” she says. “They surely lost on their investment by this misstep.”
8. Baby Boomers
Realtors have noticed that many builders across the country are failing to connect with one of the largest group of buyers: baby boomers looking to downsize. They say there is a shortage of appropriate housing for this demographic, made up of older adults who prefer new, one-level construction to existing dwellings, says Baltimore-area Realtor Janice Kirkner. “Eighty-five percent of my 55-plus buyers prefer new construction because there is no maintenance and all common areas are maintained for them,” she says.
Hailey finds older buyers in Texas desire smaller new-construction one-story houses of 2,500 square feet or less that have the features and amenities they want. “They are looking for smaller single-story homes but they want the upgraded amenities that they feel they deserve. They also want that energy efficiency.”
Andre Brown
9. Cultural Considerations
Builders often overlook the needs of foreign buyers, says Miami agent Andre Brown, who works for an Asian-owned company. Marketing materials should be available in a variety of languages depending on the area and bilingual staff or interpreters should be on hand to assist potential buyers.
“As the U.S. population becomes more culturally diverse I think it would be good for builders to research cultural preference, architecture and design to implement different aspects into their development,” says Brown. For instance, Richard says sales in his Asian-dominated market often hinge on a home’s favorable feng shui.
