Being a Top Home Builder Today

Written by Posted On Wednesday, 31 August 2022 08:43
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It’s not easy being a top home builder today.

The home building industry has been on a wild rollercoaster ride for the last two years. Record-low interest rates combined with a depleted existing home inventory resulted in an increased demand for new construction. While that should have been great news for every residential builder across the country, skyrocketing lumber prices, supply chain delays on almost every component, and significant labor shortages resulted in the need to extend build times and pass on the higher cost of doing business to homebuyers.

Surprisingly, buyers weren’t deterred. Even though the cost of a new home was higher than ever before, many had a home to sell first. Bidding wars were the norm with the “winning bid” often paying tens of thousands more than the asking price. The sellers experienced a windfall which they turned around and used to buy a new home.

Builders of all sizes were anxious to capitalize on the frenzied activity, but not every business was prepared to rise to top builder status. That was reserved for a select few that knew the secret to be the best.

Don’t Blink

Fast-forward to the summer of 2022 and everything has changed.

Home prices sit at record levels but now with rising inflation and mortgage interest rates, plus worries of a possible recession, buyer confidence has waned. While homes are still selling, they are moving at a slower pace. This is forcing home builders to make adjustments to staffing and sales plans. Top builders, however, aren’t panicking, they have been through difficult times before and know what it takes to keep money flowing to their bottom line.

Attracting Customers­­

Like every business, attracting potential customers is critical but turning them into buyers is the only way the business will be successful. Home builders have a more challenging task. A home purchase is one of the most expensive and stressful things in life, so there are a few key qualities qualified customers look for when searching for the perfect builder:

  • Experience—buyers want to know that the builder they choose has the knowledge and ability to construct the home of their dreams. A proven track record with verified satisfied customers, a company that will provide accurate product and material pricing, and a realistic completion date are key factors customers look for.
  • Skilled Staff—even if the builder hires independent contractors to handle the construction process, customers want to know that the business is being managed efficiently by a skilled team—sales, accounting, estimating, purchasing, drafting, administrative, production, and management.
  • Communication—being involved in the building process with transparent communication throughout is necessary to meeting customer expectations.
  • Honest—customers want to have a strong relationship with the company that is handling their huge investment and honesty is essential.
  • Professional—top home builders carry the necessary insurance and licenses to protect clients from mishaps and provide a warranty after moving in.

Top Builder Management Tools

BuildTopia Homebuilder ERP Software Ecosystem

Modern home builders that utilize construction management software have a customizable secret weapon to achieve maximum profitability. Using a central source for everything from accounting and purchase orders, to project management, to warranty management. Home builder software or enterprise resource planning (ERP) systems links all departments together through one application with one interface.

Builders historically run their businesses as a conglomerate of separate departments. Small businesses with only a few projects can probably manage without expensive construction ERP software, but top home builders with multiple projects can optimize their resources and benefit from:

  • Single-view operations—a combination of all operational information such as labor and material costs, change orders, purchase orders, and profitability in one single view. This allows insights to identify any problem areas and correct them quickly.
  • Project cycle management—control estimating, scheduling, and purchasing from start to end. Compile real-time reports to complete projects on time and within budget.
  • Mobile integration—allows back office and field personnel to perform complex tasks on-site including schedule changes, invoices, and purchase orders.
  • Full software reconciliation—all departments have access to the same information, from accounting to sales to project management.

Customizable Tools

Construction Management Software Customizable Packets For Clients 

ERP software for construction can be a powerful tool for home builders and their clients. Customizable packets are available for everything from helping clients make faster decisions to managing your company’s reputation to social media monitoring to analytics. Enhance the software to incorporate land management, marketing tools, sales office tools, and even create a homebuyer portal to keep your customers engaged and happy. 

Be Committed

NEWSTAR OnLocation Schedule Management

Streamlined processes help facilitate good communication, reliable scheduling, and effective budgeting. The goal is to give the company an edge over its competitors, however, the ERP system must be implemented carefully or run the risk of overextending expenditures. Some companies fail to meet their objectives due to the reluctance to let go of old, incompatible software. Purchasing and implementing construction management software should not be taken lightly as it can be a large financial commitment. Everyone must buy into the change to obtain the best results.

Start Small

Top builders understand that pre-designed software packages won’t work for every situation. Most ERP systems are scalable so they will grow as the company grows. Enterprise resource planning systems optimize the building process, uncover efficiencies, and support today’s buyers every step of the way.

Being a top home builder today is not easy but with the right tools and the commitment to creating streamlined systems, it’s possible to synchronize work and achieve faster and better outcomes.

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Serge Bojinski

Serge Bojinski is a real estate and home construction writer. Contributing editor at RenoHood. Serge and his team are dedicated to saving you time and money by offering the best home improvement advice based on solid facts and thorough research.

https://www.renohood.com/

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