Social Networking Opens Up New Opportunities for Homebuilders and Homebuyers

Social networking is a relatively new concept that has just come into its own in the homebuilding industry. Recently, Brookfield Homes, www.brookfieldsd.com, Del Mar, Calif., developed a strategy for how it plans to utilize social networking to reach more prospective homebuilders and existing homeowners.

What critical factors should a homebuilder consider before entering the social networking arena?

Develop A Business Strategy
If you are a homebuilder looking to start networking on Facebook, YouTube, Twitter, LinkedIn, or any other popular networking platform, then it’s worthwhile to spend some time researching what they can offer you and your customers. Although it appears an easy add-on to your current marketing strategy, starting out unprepared often leads to numerous difficulties that can be avoided.

“The global aspect of social networking opens the doors to an infinite number of unexplored opportunities,” says Lora Heramb, vice president of sales and marketing, Brookfield Homes, “but it’s critical to have a well-thought out strategy in place before launching into Facebook, Twitter, or any of the other social networks. A good place to start is to select one platform and, with a pre-defined plan in mind, begin to explore the cost, benefits, and return on your investment. However, prior to engaging customers on a social networking level, a current, interactive, and up-to-date homebuilder Website is the first key to success.”

With email and a current Website being the oldest and most reliable of social networking platforms, it’s important to create a state-of-the-art, interactive Website that attracts visitors, while being cost efficient to build and manage.

Create a Dynamite Website
One affordable option for homebuilders is Constellation Web Solutions, offering proven homebuilder Website solutions based on many years of expertise.

“Constellation Web Solutions includes built-in options to seamlessly integrate social networking platforms into your Website,” says Scott Hill, general manager, Constellation Web Solutions. “Our team of professional Website developers lend their expertise and ongoing commitment to help builders successfully leverage today’s technology to organically accelerate new home sales conversion rates. With strengthening market conditions, coupled with the fact that 90% of today’s homebuyers start their search online, it’s critical to meet the online expectations of today’s technology-savvy homebuyers. Along with a more informative Website, Constellation offers affordable options to help homebuilders incorporate video presentations, IVR (interactive voice response) technology, interactive floor plans, model walkthroughs, and community overviews.”

With a new or remodeled Website in place, builders can discard the old rules and begin to market with a more modern mindset. Homebuilders are ready to tackle any new opportunity and prospective homebuyers are readily engaged and captured by the new Website. Then, social networking takes this one step further and offers new opportunities to develop meaningful communications and build relationships with prospects and existing homeowners.

“What works today is probably not going to work three or four months from now,” says Heramb, “but by utilizing outside professionals you can stay on top of any technology developments, create a newer looking Website, increase search engine optimization, and concentrate your efforts on helping prospects with their new home purchase decision.”

A Realistic, Affordable Budget
The other main ingredient to success is determining a realistic and affordable budget. “The popular misconception of ‘it’s free’ is simply not true. The tools may be free to use, but social networking is far from free. The true cost depends on what level you plan to take it to,” explains Heramb. “Right now we allocate 5% to 10% of our advertising budget toward social networking. In the future, we plan to allocate a much higher percentage as we add more platforms. This, of course, means we’ll need to make tougher choices about where to spend our marketing dollars.”

Strong Customer-Centric Focus
Homebuyers aren’t interested in how well a homebuilding company can promote the different phases of its new releases; they are mostly looking for current, relevant information to help enhance their homebuying process.

“In order to attract and keep site visitors engaged and interested, you may wish to offer them the opportunity of entering a contest. And, instead of tapping into multiple networks, you may decide to use only Facebook as a networking tool. This can be fun for your customers, and the builder is able to invite an unlimited number of interested parties to compete, so it really becomes viral,” shares Lora.

Teamwork and Resources
The main resources you’ll need to consider for successful social networking are time, money, and a group effort. “Brookfield Homes uses a team approach, both internally and externally. To be really effective in social media, you’ll need the advice and expertise of a third party who intuitively understands your business,” states Lora. “Going it alone is a mistake that could cost you more time and money than you’re ready to spend.”

Measurable Results Are Key
“Years ago, we couldn’t track our progress or results,” explains Lora. “Over time, as technology advanced, we implemented reliable tracking capabilities to evaluate marketing campaigns, Websites, e-blasts by community, banner advertising, and other programs. Now, on a monthly basis, we know how many prospects are reached, and how many have turned into sales.”

“Brand recognition is another great result of social networking,” concludes Lora, “although we naturally achieve this with the quality of homes we build.  Increasing sales and heightening communications may be realistic benefits, however, it will take time to determine if this is true, and to what extent. For now, I can certainly say it increases awareness and creates mind space. Social networking is a platform that encourages and allows builders to become more transparent. We used to be more insular, but you can’t do business that way anymore.”

About Constellation HomeBuilder Systems
As the largest home building software company in the industry, Constellation HomeBuilder Systems has helped more than 2,100 builders manage their information technology costs with integrated software solutions to run their business from dirt to warranty. From planning to homeowner services, we have land development software, new home sales and marketing software, production, purchasing, scheduling, accounting, warranty, electronic homeowner manuals, vendor portal solutions, and Website solutions designed exclusively for the homebuilding industry.

By: Scott Hill, general manager, Constellation Web Solutions