Atlanta-based Homestar Mortgage Services is luring builders with free feasibility reports. Kelly Allison, vice president of Homestar's National Building division, explains, "We start working with builders from the minute they find a piece of land."
No contractual strings are attached. A builder provides land, product, construction and business information and gets a customized report in a week or less. A report in a five ZIP-code suburban area, for instance, might identify 22,000 families with two children, a household income near $60,000 who pay monthly rent of $900 with a credit score that qualifies them for a first mortgage.
Gene Kerley, executive vice president with McBride & Son Homes in Woodstock, Ga., says, "It would take us weeks to put together the kind of package they do in a few days."
Tom Melton, community manager for Joyce Homes' Atlanta division, says the free service replaces 20% to 25% of his market research budget and "helps us get turn-around decisions to developers more quickly in the due diligence period."
Both builders also use Homestar's free direct marketing services. The value-added services, Melton says, "helped us narrow our price range on two projects and move our price point up on another."
Visit www.homestar.com for more information.