When should a home builder use a model home?
Many home builders, especially large national builders, include model homes in every new project as a valuable part of their marketing plan. But if you are a small to mid-sized volume builder, you should weigh the pros and cons of investing in a merchandised model and the return on your investment. A model home can be a valuable tool for several reasons:
Amplify Your Marketing
A model home is used to showcase your work, letting potential buyers get up close and experience your home in person. A well-designed model is merchandised to highlight the architectural details of each space and helps visitors to aspire to live in your home. Professional photography of your finished model is an excellent way to market your project on social media and your website and will be useful even after the project is complete. A beautiful model will demonstrate your attention to detail, quality of construction, and design capabilities, and can help you to win design awards to strengthen your brand.
Power Up Your Sales
A model home is an excellent sales tool where potential buyers can experience your floor plan and finishes options. It can also be used to present different design options and material upgrades in a way that is more powerful than a sample showroom, adding dollars to the bottom line. Models are often used to show how your new homes can be customized to meet your buyer’s unique needs and preferences.
Save Money
Building a model home can help a builder to save money by allowing them to test out different materials, finishes, and design options before committing to them on multiple homes. This can help to reduce the costs associated with redesigning or making changes to multiple homes. Having a professional designer on board who is well-versed in the market can also help you make smart decisions about the layout, materials, and finishes that your buyers are looking for in their new home.
Show and Tell
A model home is a training tool for the construction team to ensure that everyone understands your design and construction standards, meaning few mistakes and change orders. A finished model home is also the perfect tool to present hands-on training for realtors and sales staff.
Build Your Brand
A model shows, in concrete terms, who you are as a builder. It helps you stand out in the market and instills confidence and trust in your potential buyers. Including a finished model in your business plan augments your brand in a way that a sales pitch or a website never can. Well-designed models show who you are, what you build and why your product is the best choice.
However, model homes can also be costly, and they may not be feasible for every builder. It’s important to weigh the costs and benefits of building a model home and to consider factors such as the local housing market, the size of your project, your target market, and your brand strategy. A professionally merchandised model home can be a useful tool for home builders in terms of marketing, sales, cost savings, and brand building