Most of the home builders I know got into their profession because they love to design or build homes.
Very few of them got into the business because they were natural salespeople and just found new construction to be an easy sell.
Because most of my home builders are just that – new construction contractors who are more comfortable hammering nails and laying slabs than dealing with potential buyers – I’ve decided to offer 3 tips that can help builders develop the sales end of their business.
After all, if they don’t sell any homes they’ll eventually be out of business!
Here are 3 tried and true strategies that are proven to help lead to sales in the new construction industry:
Tip #1: Set Realistic Expectations
Everyone’s heard the expression that perception equals reality.
When it comes to waiting for something you want, this has never been truer.
As soon as you begin building a home for your customer, the clock starts. Every home builder knows this feeling.
Countless studies have been done which prove that when anticipation is involved, five minutes seem like six, 20 feel like a half-hour and waiting a year for a home to be built can go by like it was three.
For customers waiting for their new home to be built, 6 months can seem like an eternity.
Given the increased stress levels, consider proactively managing your customers’ emotions by addressing their expectations. Be honest and transparent about deadlines and issues as they arise, and try to set expectations that you can meet and EXCEED.
This might be as simple as returning phone calls within the time frame you specify, or handling change orders or problems before deadlines arise.
This won’t necessarily help you build more homes, but it will help you create satisfied customers which is the key to getting more referrals and ultimately more sales.
When in doubt, it’s always better to under promise and over deliver than do the opposite, especially when a new home is involved.
Tip #2 – Commit to Time Blocking
A lot of building a home is the administrative side of things. There are pounds of paperwork every week, following up on conversations with buyers, suppliers and workers, tracking down essential documents, etc.
Some builders have it worse than others…those who are involved in the actual construction of homes are tracking down subs and supplies. Those builders who are involved in the management of their business are dealing with financing, banks and realtors. Others do a little (or alot) of both.
If it doesn’t feel like there’s enough time in the day, you’re not alone.
In order to conquer this feeling and make the most of your day, consider practicing time blocking.
This strategy is basically a way to build a schedule within your schedule. Instead of saying you’ll be in the office from nine to five, block off precise periods for when you plan on handling your necessary goals.
The reason this is so important for home builders is because a lot of times, our days could consist of simply waiting on prospects to walk in or call back.
If you planned on doing that between nine and five, you wouldn’t have a very productive day and you’d have to add hours in to take care of everything else that had to get done. Ultimately, this will kill how many sales you close.
Tip #3 – Work with a Better Lender
On the surface this might seem like self promotion, but I assure you it’s not.
Builders have a limited number of buyer opportunities, so having a mortgage lender who can get those buyers financed is critical to your success.
There are a number of things to look for in a lender::
- They will qualify your buyers early on in the process
- Experience in construction financing
- A wide variety of products including government and jumbo
- Construction-permanent financing
- Extended rate locks
While there’s no substitute for building good homes, the above tips will definitely help you close more sales so you can build even more.
Let us know what you think in the comments below!