Industry consultant Noelle Tarabulski advises builders on what to do when they encounter stalled home sales.
Most builders know a stall when they see one. Sales have slowed and year-over-year comparisons show recent results and metrics are not in line with expectations. The question is what to do about it.
Finding the problem
Potential sources of problem by order of analysis
- Mortgage rates
- Advertising in place?
- Website effective?
- Directional signage used consistently?
- Office schedule posted and adhered to?
- Sales agents trained properly?
- Community clean and orderly?
- New competitor with new product, price, place, people
- Competitive adjustments
- Lot size
- Training of sales team
- Cycle time is too long
- Quality of deliveries is low
- Warranty management not in place
- Missed closing dates
- Behavior of field or office staff with others is an issue
- Integrity of your company is a discussion point in the marketplace