Twenty-two. According to Wick Marketing’s 2023 national study of new home buyers, that’s the percentage of recent buyers who said they felt confident in their home buying process and satisfied with their decision. The other 78% reported feeling burdened and disappointed, as well as stressed and even regretful. That’s a pretty strong rallying cry to the homebuilding industry to reconsider what it’s like to be a homebuyer these days – and a signal to builders that they can elevate their competitive position by improving that experience. And it’s safe to say, an elevated experience will help sell more homes, too.
Key Issues for Buyers
- The market: Interest rate hikes, inflation, rising home prices and other stressors contributed to pressures.
- Lack of support: They didn’t get what they needed to make informed decisions. Many didn’t know what they needed, even.
Your Opportunity
Leverage the research-based insights. Buyers have told us what they want. And the builders and developers who give them more of what they need to confidently buy are better positioned to connect. While the market will do what it does, many touchpoints are within the builders’ control. Do better than your competition at those critical points of connection, and you’ll be ahead of the game with today’s buyers.
Next Steps
Some 81% of buyers who plan to purchase in the next two years say they’re shopping now. This is your pipeline. What’s their first impression of your brand – and where is that happening? Be the homebuyer. Evaluate every single instance where they may encounter your brand. And then, ask yourself if it’s moving them forward or potentially costing you a sale. These short checklists may help you to get you started:
Online
- Digital advertising
- Social media content (and comments)
- Online reviews
- PR/news coverage
- And of course, website
Website
- What’s their first impression?
- Does the content tell a compelling and inspiring story that immediately engages?
- Can they get a sense of the place, the product, the offering?
- Can they easily find what they came for? (Hint: they want pricing first, and it needs to be transparent.)
- Is all information current and accurate?
- Do all links work?
- Is the site intuitive and easy to navigate?
- What happens when they register for your email program? Does it add value? How does it help them?
Onsite
- Billboards/signage
- Community
- Sales professionals
- Welcome center
- Models
- Marketing & sales materials
Welcome Experience
- The industry focuses significant budgetary resources on getting buyers to visit the community and models. Is the experience everything you want it to be?
- Is it everything the buyer might want it to be?
- Is it notably better than every community within 5 miles?
- What happens after they leave?
- What do you think they’re telling their friends and family?
Education
- How can buyers learn about your buying process? They want to know more.
- Are you their best resource for information about your community and the surrounding area?
- Can you do more to help them save time, money or frustration throughout the process?
- What checklists, tools, content or events might better serve your buyers, and therefore encourage them to look to you for information rather than your competition?
Financing
- Buyers did not get what they needed here. Many had not established an affordable price level, didn’t understand much about interest rates, felt they weren’t ready to buy but felt they had no choice, and ultimately, felt overwhelmed. They needed support, but largely, didn’t feel they got it.
- How else might you provide better information and education around financing, earlier in the process?
It’s not easy buying a home right now. It’s not particularly easy being a builder or developer either, and we absolutely get that. But here’s the thing: Current prospects and recent buyers need something better in their experience. Whether you figure that out internally, or let us help, there’s a big opportunity for those who shift to practices that allow for more buyers to feel confident and satisfied.
Please, let us know how we can best support you.
If you’d like to explore data-informed actions your brand can take now to improve the customer experience, we’d love to help! Please visit wickmarketing.com/research, or reach out to Barbara Wray at barbara@wickmarketing.com or (512) 564-4289 to chat.
About the Study
Wick Marketing commissioned its research partner, Audience Audit, Inc., to conduct the study to gain a comprehensive understanding, backed by statistically significant data, of recent homebuyers’ attitudes and perceptions when choosing a builder and purchasing a new home.
The goal was to better understand people who, despite 10 interest rate hikes, inflation and sometimes inflammatory headlines, still bought new homes. Additionally, the desire was to learn more about what current prospects prioritize in their homebuying experience.
The study took a uniquely quantitative approach to uncover different attitudinal segments within the buyer audience. These segments encompass individuals who hold distinct but common perspectives on the homebuying process, their confidence levels, their degree of trust in builders and real estate agents, as well as their priorities in the homebuying experience.
Methodology
This 15-minute online survey was fielded March 27-April 22, 2023. The majority of U.S. states are represented by the 1,347 respondents. The margin of error is +/- 2.6 percentage points at a 95% confidence level.
To access more insights in our presentation, Beyond Buyer Profiles & Demographics: Who is Buying Homes Now and Why, as well as our free interactive Tableau data visualization tool, where you may view the data that’s most meaningful to you, please visit wickmarketing.com/research.
