With the economy still forecast to be gloomy and an uncertain road ahead, many residential developments and their builders have put the brakes on new construction projects. For builders and developers in the speculative home building market the strategies for earning a living from what they do best and remaining solvent while doing so are limited and challenging.
Many have resorted to building smaller homes using value engineered construction plans, emphasizing quality not quantity. Much more effort has gone into making a home energy-efficient and utilizing the latest green technologies available today. Also, more affordable homes are being built using less expensive, more standardized materials.
Builders have sharpened their pencils to shrink profit margins, incorporated more productive methods to reduce operating costs and upgraded to the latest technologies to streamline project efficiency. Some have even regrouped, combining resources and developing partnerships with others in their field.
Cost saving tactics can only go so far, especially with bank financing for builders and developers remaining problematic. Creative, private financing has been the alternative for some, however, that is not without its own drawbacks. High interest rates and larger upfront contributing costs required of developers and builders can significantly eat into profit margins.
Many home building companies realizing that future success will depend not only on fresh business practices and sleeker operational models that continually produce less expensive, noticeably better homes are now innovating; stressing more creative approaches to buyer's needs. The option of marketing their speculative homes via 3D virtual house plans is fast becoming the preferred innovative sales tool.
Today's buyers want things their way. And they expect a say in what they get. Many are more interested in reasonably attractive and practical function than simply fancy form. Small efficient floor plans with flexible space are more relevant than grandiose entrances with huge staircases. Instead of guessing what to build and hoping they will come, listen to prospective homeowners, and give them a chance to personalize each project.
That is why many open-minded builders, thinking outside the box, have been pre-selling semi-customized versions of model homes, through computer modeling of 3D house plans. By providing several base floor plans with full computer generated 3D color views of both the interior and exterior of the proposed new home plan, builders and developers are able to market their projects with the least amount of upfront costs and preparations.
This relatively inexpensive, cost-effective market strategy is a win-win situation worth considering. Builders don't have to spend a dime in advance on home construction materials or labor costs without knowing the end results. Their sales team and physical presence can be significantly reduced - think virtual office. Actual site visits to model homes would not be encumbered by bad weather or scheduling hassles. Virtual tours would be available on the company website featuring all 3D imagery of the home plans and accompanied by detailed lot information, pricing options and customizations or upgrades.
For a buyer, who can now "shop" from the convenience of his or her home, an initial "walk-through" doesn't waste either party's time. With virtual 3D modeling of floor plans future homeowners can see what the proposed residence will look like and get a good impression of spatial relationships within the layout. They can view color options and material choices with respect to exterior siding, interior finishes and trim details.
Starting from the pre-designed computer generated floor plans; buyers would be able to interact with pre-packaged upgrades, color and material choices and other customizable options. All material and finish details such as lighting, fixtures, hardware, appliances, flooring, paint color and exterior siding can then easily be selected and pre-priced.
The marketing strategy of pre-selling new home construction with 3D house plans is an effective method not only for large developments but is especially beneficial for small builders with very little capital and no sales team. A number of our small builder clients with one or two building lots in their inventory have chosen to pre-sell with 3D house plans rather than start risky construction projects on speculation.
Marketing speculative home construction through pre-designed customizable house plans and computer generated 3D modeling is fast becoming the new norm. We have seen this trend both locally and nationwide where future homeowners have a say in the design and construction of their new home and builders have found a new niche for maintaining a profitable business.
Many have resorted to building smaller homes using value engineered construction plans, emphasizing quality not quantity. More affordable homes are being built using less expensive, more standardized materials.
Builders don't have to spend a dime in advance on home construction materials or labor costs check here without knowing the end results. Virtual tours would be available on the company website featuring all 3D imagery of the home plans and accompanied by detailed lot information, pricing options and customizations or upgrades.
The marketing strategy of pre-selling new home construction with 3D house plans is an effective method not only for large developments but is especially beneficial for small builders with very little capital and no sales team.