2008 New-Home Builder Customer Satisfaction Study
If you’re searching for signs that the economy isn’t at all what it was a year ago, you don’t have to look any further than the homebuilding industry.
Inventories are up. Prices are down. Sales that used to be centered around simple order taking have made a one hundred and eighty degree turn to concentrate on delighting customers. Today’s homebuilder salespeople are focused on doing whatever it takes to keep prospective buyers in their offices. The ones who are still surviving and prospering are highly skilled in the arts of negotiation and enticement.
In other words, it’s a great time to be a homebuyer.
The J.D. Power 2008 New-Home Builder Customer Satisfaction Study SM finds that the customers of many builders expressed significantly high satisfaction than they did a year ago and the industry, as a whole, has earned improved customer satisfaction. That achievement is based on responses from 50,837 buyers of newly built single-family homes, in 33 regional markets, who provided feedback after living in their homes an average of four to 18 months.
The reasons behind those improved customer satisfaction numbers are plentiful – and many of them relate to that changed economic environment. A number of weaker home building companies have closed their doors and the ones that are still standing are concentrating on delivering an exceptional customer experience. In fact, many home builders in areas like Nevada, California and Florida where home values and sales have been particularly hard hit fared well in the study, performing above the average of all the markets surveyed.
Buying a home is a critical financial decision. And even in the best of circumstances, is filled with anxiety and uncertainty for the consumer. The top ranked builders in our study go out of their way to make sure that their home buyers are as comfortable as possible. That effort translates into consumer friendly actions like providing at least 30 days of advance notice before a home hits escrow, with firm dates.
People have more choices – either from a larger inventory of already finished homes or from new construction done by crews that are focused on far fewer projects than they used to. Items that used to be costly upgrades – like granite countertops – are now standard, and incentives are commonplace.
- The average sales incentives for home buyers who reported receiving one was more than $16,500.
- Lowered base prices and credits towards options and upgrades are the most common incentives.
- Homebuyers report that they received more than simple dollar benefits.
The quality of new home construction is quite good, and it’s getting better all the time. Compared to resale homes, even those built just a few years ago, new construction today, uses the latest and most energy efficient materials, like insulation, appliances, windows and heating and air conditioning units.
You can find more complete rankings and detailed information about which homebuilders in your region are delivering superior customer satisfaction along with their new construction at JDPower.com. Also, view homebuilder customer satisfaction ratings, watch a video or read the press release.
