Have we reached the time in the real estate when the rich get richer and the poor get poorer? For the larger builders who have the capital to invest in websites, marketing departments and IT directors this is probably true. What about the smaller and shall we say the more technology challenged builders? I know several custom builders, who shall remain nameless, who not only do not have websites, but also have had some difficulty with adapting to email. Technology, from the digital standpoint, just is not their strong suit. Does this mean they build a less than adequate home? Of course not, they build some of the best homes in the Atlanta Market. Does it mean they are technology challenged? You bet it does. Cell phones and Nextel are about the extent of technology in their business. They know how to include technology in the homes they build because they have been educated about it by the home builder association and by some of their more proactive vendors. What it does mean is that their homes may not be getting as much exposure to potential buyers as some of the other builders homes.
So how does a technology challenged builder compete in today’s marketplace? The first thing that has to happen is for the builder to admit to the shortcoming. After realizing what is needed the builder can take one of two approaches. The first approach may be to get a website and jump into the internet and web2.0 with both feet. We have already established that some of these builders have had difficulty in adapting to email, so this first option may not be the best solution. The next option would be for the builder to align with an Atlanta Real Estate Agent who has adapted well to the internet, email and web2.0. Someone who can utilize the social media avenues in conjunction with a well functioning website to market and obtain maximum exposure and interest for the builders properties.
It has been accepted over the years that marketing a individual resale home, by itself, is considerably more challenging than marketing a group of new homes in a subdivision with multiple choices of elevations and floorplans. A REALTOR® who has specialized in resale homes has had to learn how to get a property maximum exposure in the shortest amount of time possible. One of the best way to accomplish this through the internet. A National Association of REALTORS study shows us that 82% of all home buyers start searching for their new home on the internet. This number is even higher with younger more technology savvy buyers.
Recently there has been some very interesting marketing taking place in the new homes arena in metro Atlanta. Unfortunately for some of the builders this marketing is all about price reductions, bonuses and increased commissions to the buyer’s agent. While these tactics are benefical to the buyer’s and buyer’s agents, are they what is best for the market? When I am representing the buyer, I for one am not opposed to a higher commission percentage or agent bonus as it is just additional income for me to do what I was going to do anyway, find my client the best possible home to meet their wants and needs. But the results on the marketplace can have some lingering effect which are not very positive for the builder or the buyer. As price reductions are made and homes become sold the one thing that is affected is the appraisal. Appraisals are based on sales comparisons and the lingering effect of lower prices may remain for six months to a year, possibly longer. Depending on how many homes a builder has for sale in a particular neighborhood, the lower appraisal may generate a bit of a catch 22. I don’t believe that this would be the desired result. Price the home competitively to start with and then get it as much exposure as possible.
So here is a thought for Atlanta builders who fall into the category of being internet marketing challenged, "Why not employ a REALTOR® with a proven marketing plan to handle your new homes"? What have you got to loose?