2022 Summit

15 Million Buyers Lost ...Buyers of High Performance Homes see increase in Purchasing Power


Description
Over the last year, the combination of material price increases and dramatic interest rate upticks, approx. 15 million US households can no longer afford to purchase a median priced home1. Add to this a recently released report from Fannie Mae that reflects increases in consumer pessimism toward mortgage rates and homebuying in general, with 73% of survey respondents reporting that today is a “bad time to buy a home”2 … the days of waiting list / homesite lottery’s / and buyers willing to wait 8-12-18 months for a new home may be coming to an end. We believe it’s time to innovate in advance of this job threatening disruption. But there is good news for the high-performance homebuilder. And that is that those who illustrate the value proposition of their homes using a holistic approach; bundling price, home performance and financing (with comfort/IAQ/Water efficiency), can increase demand for their high-performance homes and position themselves to get their unfair share of the shrinking pool of prospective homebuyers. The session will address this opportunity using a three-fold approach … (1) the initial focus is an overview of what a green home is and how they are the sold/marketed today, (2) the second focus of the session is the introduction to compare/contrast these current strategies with a proprietary the ProjectTCOTM approach. This segment will show the audience the power of using the ProjectTCOTM program to; (a) from a planning perspective, determine a cost-effective target HERS Index, (b) understand how mortgage financing structure can enhance purchasing power, (c) understand how a home builder can “price in” expanded homebuyer pools to gain market share/sell more homes, and (d) an illustration of the long term and short term TCO savings/wealth building for prospective homebuyers (calculated on a year by year basis). Focus (3) is how do we recommend that builders and marketing teams support the ProjectTCOTM initiatives using a transformational training program referred to as TotalTCOTM. This training equips on-site agents/co-op agents with tools to illustrate why a high-performance home is a superior value. The training also empowers prospective home buyer clients with tools to help them make the best financial and performance decision also using a holistic perspective. In closing, the new home market has changed in 2022 and will continue to change into 2023 and beyond. We believe that home builders that adopt a strategy to deliver a superior value proposition will prosper … this session will empower them to do so. 1 Based on assumptions from the NAHB Priced Out Estimates for 2022 2 Fannie Mae Home Purchase Sentiment Index – March 2022
Content
  • 15 Million Buyers Lost
Completion rules
  • All units must be completed