Do Consumers Care About Performance?
By Mark LaLiberte

What is it that today’s new home buyers want? We certainly know that they will want more of this, less of that and will be changing their minds as often as they change ring tones on their phones. But how can we better understand these buyers and respond effectively enough to earn our way onto their short list of builders to visit one last time? How can we be remembered for our product and not for the color of the paint in the living room? How have rising energy prices and the increasing interest in indoor air quality changed what buyers are concerned about?

By understanding and listening to your buyers, watching market trends, and considering the features that differentiate you from other builders, you can capitalize on today’s slowing housing market and be successful selling higher performing homes to a more discerning public.

In the US, nearly 33% of our total annual expenditures are applied to our mortgage, property taxes, maintenance, repairs, utility costs and household operations. This figure is from 2003 and does not represent the 60% to 80% increases in energy costs we have seen in the last two years! When we add the average cost of transportation, we exceed 50% of our total expenditures, which again does not include recent increases in fuel costs. What does this means for your business? It means that today’s home buyers are more receptive than ever to learning how you can build them a home that reduces their heating and cooling expenses by up to 40%, and how you can reduce their maintenance costs by building for improved durability.

With housing starts slowing, it's essential that we move to a new level of performance for your buyers and for your businesses. As a successful builder, you have probably purchased books about energy efficiency, attended conferences about high performance features and benefits, and have implemented many innovative techniques to build better homes. But what I often hear from builders is that buyers don't care about this stuff. They are looking for the lowest cost per square foot; they'll trade energy efficiency for better countertops; and when it comes to upgrading windows and flashing, they would rather have a bigger garage. This may sound painfully familiar, but the reality speaks differently. In surveys done by both NAHB and Professional Builder Magazine, buyers rank energy efficiency as one of the top five features a home must have. We also know from surveys conducted in other major markets, that buyers will tell you exactly what they need and expect if you ask the right questions. So what questions should you be asking today’s home buyers?

Is the increasing cost of energy a concern to your family’s budget?

Do you feel it's important to have a continuous supply of fresh, filtered air in your home?

Would you be interested in having your home certified by a third party inspector to ensure energy performance features are at the highest level?

Is it important to have a dry foundation or will slightly damp be adequate?

Is it important to prevent carbon monoxide from entering your home?

Would you like appliances that use electricity more efficiently and cost less to operate?

Are you interested in upgrading to a better weather barrier system that would address the challenges unique to our climate?

Each of these questions represents an opportunity to differentiate yourself, as well as a way to keep your clients focused on the product and quality you build into the home and less concerned about the features they thought were important. Aesthetics, location, price and floor plan are always of concern to the buyer. But every builder can use these features to make a home “look pretty”. Only the builders who truly understand all facets of a homes comfort, performance, style and affordability features will set themselves apart and succeed in today’s increasingly competitive market.

If your business isn't targeting better building performance, implementing quality control strategies and marketing your differences, you will find yourself chasing trends and following leaders into the next phase of home construction. The opportunity before you is to be aware of consumer needs and target the buyers that appreciate your skill and attention to detail. Be the best and market yourself as the best. Offer competitive pricing without compromising on your integrity and quality. Today’s buyers will see the difference, pay for it and tell their friends.

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