This year we have experienced an incredible home building boom. Contract sales are up 39 percent year over year according to the Meyers Research New Home Pending Sales Index and some of our partners cannot keep spec homes on the market because the demand is so high.  

But as we enter the fourth quarter, how do we budget for 2021 when we are still in a pandemic? Here are a few things from our Builder Designs team to keep in mind as you enter these talks in the next few weeks.

Mind the market

“Historically-low interest rates” has been a favorite selling point for many builders this year, but where do we go when they start to pick up again? We expect a slowdown across the industry as we enter the new year with the usual weather and other factors working against us as well. 

Lumber rates are on the rise too and even though you may not be feeling the effects yet, you likely will. Prices have increased by almost 50 percent since April and 14.9 percent in the month of August alone. This trend has halted projects and scared homebuilders who are facing an average upcharge of $16,148 on new homes since April 17.

Although it’s tempting to coast on your sales numbers, this is a great time to invest in a marketing plan for the future that will keep you competitive. We learned after the 2008 market collapse that the builders who planned ahead and kept their SEO and marketing efforts strong even in good times, were the ones that weathered the storm. 

Look at your website first and make sure it has all the information it should and is easy to navigate -- especially on mobile. If not, a new website should be the core of your 2021 budget. If your website is newer, it would still benefit from a comprehensive audit for ADA compliance and search engine optimization.

Prioritize your visuals

At the start of the pandemic, many builders scrambled to create renderings and videos that allowed homebuyers to tour remotely while offices were closed. We expect buyers to continue expecting this modernized sales process even after restrictions are lifted because it is so convenient. 

This is a great time to really invest in your visuals with high-quality photos, engaging videos, informational graphics and anything else that can help showcase your brand to potential buyers. And then, you should use these everywhere from your website to your ads. Taking time for some group training on best practices might be wise as well to get your internal staff comfortable on camera.

Make a plan for messaging

The general uncertainty is likely to continue well into the new year, so make sure your marketing materials reflect that. Think about your own conversations at home and how your priorities have shifted in the past few months. Are your buyers looking for home offices? Are they moving toward the suburbs because they don’t have a daily commute anymore?

Meet your buyers where they are. That applies to the platforms they use, but also the messaging they want to hear. Marketing has become a lot more personal this year and buying a home is one of the most important decisions a person makes. 

If you cut back on marketing and SEO services while the market was hot, consider picking those up again to set yourself up for success even when things cool down. 

Specifically for social media, research the latest best practices to make the most of free platforms like Facebook, Instagram, LinkedIn and Google My Business. Each one also offers ads that can help you reach new audiences. 

For more advice on structuring your strategy or updating your website, call Amber at (913) 393-3367.