How Builders Can Leverage Real Estate Tech Trends to Stay Ahead of the Curve

The latest real estate technologies are developing at a ridiculous pace — and builders can’t ignore them. If you’re not actively exploring new ways to build faster, smarter and for more buyers, then you’re already behind.

There are many companies breaking the mold in real estate technology — here’s how you can learn from them to stay ahead of the curve.

New trends in real estate

According to the Zillow Group Consumer Housing Trends Report 2018, the median age for a typical buyer is 41, yet the largest share of home buyers are millennials (age 24-38). That means they’re more tech savvy, demand more information upfront and crave immersive experiences during the home-buying journey.

To meet those buyer demands, more companies are finding new ways to disrupt the industry.

Prefab

Prebuilding some (or even all) of a home can save builders time and costs. Katerra optimizes every aspect of building design, materials supply and construction — meaning delivery and installation of structural components, finish items, and kitchen and bath products — to build beautiful, high-quality buildings faster and at a lower cost. Dvele takes prefab one step further and uses modern materials to create high-end finishes that are safe, clean and sustainably produced. 

Home care

Builders who want to stand apart from the competition have several opportunities to surprise and delight buyers with subscription home care. Super is a concierge service that manages the logistics for all the care and repairs for a home. What better way to engage with buyers after the sale than by stepping up the standard new construction home warranty?

Alternative financing

Giving buyers an alternative to a traditional loan is one way to get them on the path to homeownership. Flyhomes offers an integrated approach to buying a home or trading up: They offer cash to buy or sell homes, helping clients who are competing in tight markets or are juggling both transactions. One of ZeroDown’s services buys the home shoppers want, and they then pay back the down payment over five years.

Direct to consumer

Builders who would rather work directly with buyers can be inspired by ResiBuilt, who gives buyers transparency on home prices and a choice in how to buy. Buyers can get a price reduction when they don’t use a real estate agent, or they can finance a rent-to-own home by amortizing their down payment.

Rich media

Helping buyers visualize living in a home that’s not yet built is critical to moving them closer to a sale. The Housecraft app uses augmented reality on a buyer’s iPhone or iPad to show off your homes decorated with fully rendered 3D furniture.

On-demand touring

On-demand home buying starts with on-demand searches. Tools like NterNow and Rently offer keyless entry, allowing home shoppers to view homes and attend self-guided tours on their schedule. Built-in devices like Latch give homeowners (and their guests) smartphone entry to the home.

How to capitalize on these trends

The common thread in any of these trends — and the key to an outstanding customer experience — is making the new construction home search and purchase as easy as possible on the buyer. That means giving them all the information they need to make the best home decision and empowering them to act.

Bridge the digital-physical gap for buyers

Most home searches start online, but buyers can easily drop out of the funnel if their in-person experiences fail to meet their expectations. Creating a seamless digital-physical connection starts by responding quickly when buyers reach out online, letting them book a tour and then offering a strong sales center experience. Take inspiration from companies in other industries who have mastered the digital-physical connection:

• Amazon Go: A digital brand adopting a physical presence. Customers can shop physically but pay digitally.
• Starbucks mobile orders: A physical brand going digital. Customers get a personalized coffee experience without the wait.
• Peloton: Digitally and physically integrated services. Customers can join a livestreamed fitness class from the privacy of their homes.

Use the same technology your buyers use

Be where your buyers are: on their smartphones. Companies like O’Neil Interactive help you offer rich experiences on your mobile-optimized website. Be transparent online with complete listings and updated, accurate information. Give buyers an immersive experience using virtual tours, 3D tours and even live tours through Facebook.

Redefine your sales center

Visiting your sales center can be a valuable part of the buyer’s journey, but builders need to improve the experience after getting buyers in the door. Immersive experiences aren’t just for online — Alpha Vision and Rendering House create interactive apps and virtual tours for your sales center to help deepen the buyer’s engagement with you and your homes. Post-tour follow-up is also key to a productive sales center experience for both you and the buyer.

Explore new business models

Does your current business model work for the 21st century? Meeting buyers’ demand for a different way to shop for and buy new construction homes — using consumer insights and innovative concepts — is how to show true marketing leadership. Builders need to embrace fundamental changes to their business models in order to stay relevant to the modern consumer.

Technology growth is the biggest driver behind the changes in the new construction industry. If you haven’t considered how that growth impacts you and your buyers — and how you can benefit from that technology — it will be difficult to catch up to those who have.

Note: This article was developed from a keynote talk given by Marty Collins, senior director of revenue and business strategy at Zillow, during Homebuilder TECH in May 2019.

*Zillow Home Loans, LLC (NMLS#10287) www.nmlsconsumeraccess.org EQUAL HOUSING LENDER. All financing is subject to credit, property and underwriting approval. Not all applicants will qualify. Not licensed in the State of New York. This is not a commitment to lend.