Manor Homes competes for Portland’s top spot with two publicly traded builders. But Manor’s owner, Randy Questad, who was born and raised in a Portland-area construction family, knows that being a hometown guy matters when it comes to serving new homebuyers. Photo: courtesy Manor Homes
Charlie Scott, longtime housing industry consultant and a contributing editor to
Professional Builder,
foresees more acquisitions over the next few years. However, he also notes that many local builders are in a position to stay independent because of how they’ve grown post-downturn, solidifying land assets and repositioning themselves. Here’s advice from Scott on how to prevail in your market by playing to your strengths.
1. Celebrate your smallness. You’re not going to purchase better, have better software, or get better financing than a national giant. You’re a regional expert, offering great product that honors local architecture and offers an authentic sense of place. Sign on with those as your unique selling proposition.
2. Embrace your flatness. Fewer levels of hierarchy between ownership, senior leadership, and your customers offers a competitive advantage over big firms. Often, market leaders publish the owner’s name and number on the website. This sends a message about customer service and inspires confidence in potential customers.
3.
Emphasize being a local. Again, you’ve got an edge. The best local builders are much more adept than the large public companies at knowing the A and B locations, whereas
the giants often start stretching into the C and D sites. That’s fine during good times, but when the market turns, the C and D sites are the first to collapse.
4. Listen to the customer. Often, both giants and the resale market reduce home building to price per square foot. Successful market leaders know that what makes them unique is customer service, architecture, and design. Use third-party firms to gather unbiased feedback. Deliver what the customer is asking for, and offer superior follow-up.
5. Serve your community. Get involved with local charities to help enrich the community at large. Your investment resonates with residents, who aren’t just homebuyers, but are realtors, planners, and local businesspeople. In addition to doing good work, you’re creating an effective marketing tool.
6.
Hire the best. One of the smartest ways to stay competitive is making sure you have the finest superintendents,
salespeople, warranty people, and operations people. Successful builders know how to honor local talent and maintain great relationships with all the best local trades.