Logic tells us that in this challenging market, anyone selling real estate should be pulling out all the stops. You'd think so. But you'd be wrong if you read the results of a study just released by Two Denver area marketing services companies regarding homebuilders in the Denver area.
Qgenisys, Inc. and research and marketing services company Red Tree Marketing Resultants determined from a survey conducted in late 2007 that Denver builders are spending millions of dollars luring prospective customers to their model communities only to ignore them after they visit.
Using mystery shoppers to visit 50 model home communities in the Greater Denver area, the companies investigated how builders interact and follow up with potential new homebuyers. The study's purpose was to help builders understand what they must do to succeed in a down housing market.
The results of the study were not what these homebuilders would want to hear. It found that potential buyers were allowed to walk out the door, often un-greeted and with little follow up. According to the study, only 14 percent of on-site agents followed up with potential buyers with relevant information while 64 percent did not follow up at all.
The study also showed that only 57 percent of shoppers were asked to complete a registration card and of those, only 46 percent received follow up of any kind after their visit. For the shoppers who did receive follow up contact, only 23 percent received follow up that made any reference to the preferences the shoppers discussed at length with the builder's representative.
The result of the 18-page study is that Colorado homebuilders are losing millions on their advertising investments and in lost sales, according to Bob Mazerov, Red Tree marketing researcher and business strategist.
For a copy of the Builder White Paper, visit qgenisys.com.