US Real Estate: 4 Researched Insights For An Amazing Customer Experience
Category Analysis – Real Estate
Regions – USA
For most of the consumers of US real estate industry, a home represents a huge portion of their wealth. Hence consumers think about few important factors before making the big decision. In this report we offer insights into the consumer preferences according to the online discussions happening around the real estate topic. These form the key drivers of customer experience for US real estate customers.
The analysis is based on customer reviews and conversations online in the segment. The analysis results presented are completely unbiased and not based on any subjective judgement. The source data used for the analysis are user conversations available publicly online like public forums and social media.
Total number of customer conversations analyzed
US Real Estate Industry Overview
- Millennials will contribute largest accounting for 45% of mortgages, compared to 17% of Boomers, and 37% of Gen Xers
- By 2020, millennials will account for 45% of the mortgages on the market.
- 50% of buyers find their new home online.
- Building permits authorized for new housing units soared 12%.
- Housing starts and completions were up 6.6% and 5%, respectively.
US Real Estate Market Growth Drivers
Inspite of the low US economy, US real estate is seeing moderate growth. There has been a strong growth in residential construction activity which is driven by lower mortgages rates. “The average interest rate for 30-year fixed rate mortgages (FRMs) was 3.62% in August 2019, down from 4.55% in August 2018.”
“Low interest rates and solid demand continue to fuel builders’ sentiments even as they continue to grapple with ongoing supply-side challenges that hinder housing affordability, including a shortage of lots and labor,” said NAHB Chairman Greg Ugalde.
The rise in rents is expected to increase strongly thereby driving people to buy houses rather than rent. The rent rose by 6% to $1,008 per month in Q2 2019, according to the U.S. Census Bureau.
Apart from the above growth factors, the new tax law is also set to improve the US real estate market. President Donald Trump has recently overhauled the U.S. tax code which includes reduction in the mortgage interest deduction cap. In addition it also increases standard deductions and restricts state and local tax deductions. The law limits the deduction, which helps home buyers lower their taxable income.
US Real Estate: 4 Researched Insights For An Amazing Customer Experience
There are many investors in today’s US real estate industry. This makes it absolutely necessary to offer an excellent customer service that will set you apart from the pack if you want to be successful.
The competition in the US real estate is stiff, and when technology is applied to automate a lot of services – what is that makes you stand out from the rest of your competition?
Providing an exceptional customer experience is all that matters to make an ever lasting impression. Real estate is an industry that is built on trust and relationships, thereby making it all the more important to provide a great customer experience to increase customer satisfaction and retention levels. Knowing what drives a customer towards enjoying a great customer experience is the crux of the matter.
Clootrack analyzed 2,009 online consumer conversations that identify top 5 drivers that US real estate buyers consider before buying a property. In this report, we will help you to explore different factors that lead to better customer experience.
1. Time and Cost
Buying a property involves a lot of time and money. There are a lot of other fees such as developer fees, real estate fees, maintenance fees, land registration fees and so on which adds up to the overall cost of the property. This might add up to a fairly large amount of loan to be borrowed leaving the client unprepared on financial planning. Hence consumers prefer to get a flat cost that is inclusive of all costs expected to be borne by the consumer. A flat cost will help the clients in financial planning as there is no great deviation in the original budget since the cost of an all-inclusive cost.
Consumers are looking at a real estate company that is referred by their friends or family. This gives the added cushion that it’s a property that consumers have either seen or heard from their friends and are at a better position to decide on buying it. Consumers prefer to buy property in a known community where a friend or family is staying and is recommended or endorsed by them. A buyer is at ease to enter into a real estate transaction in a community where there are people talking the same language as his.
3. Quality Delivery
When a consumer buys property the first thing obvious is to check for the quality of the construction. Consumers want to buy property that is built using branded materials and not local materials. Consumers are aware that the lack of quality in construction eventually will cause premature deterioration leading to loss of shelter and financial problems in the future.
Hence it becomes important for a real estate professional company to source best quality materials which at the same time are sustainable, energy efficient and environmentally feasible building materials. A buyer is looking for an external certified or chartered engineer certified properties that maintains accounts and quality that can be audited.
4. No Local Complications
Property should have adhered to all the regulations of the local authority and not have any deviations from the plan. An investor wants to be most careful in making sure that the property they wish to buy should have no complications in the plan and has obtained all required permissions. Real estate companies should see to it that the houses should have been built after seeking permission for every significant development else there is a chance of running into risk of penalties.
5. Interior Decoration and Finishing
Buying a home is just a part of the entire experience. Interior decoration and design that enhance the overall look of the house has gained importance in the recent days. People now realize that the true importance of having a house designed by specialists that offers extra presentation and comfort. Consumers want to buy a house that has a garden and which has been decorated with standard designs or can accommodate the designs as per the customer choice.
US Real Estate: Top 3 Emerging Trends
US real estate sector has grown steadily, and has taken great strides to emerge as a key real estate investment destination. Buyers are looking for creative plans and affordable budget before making the decision to buy a property. Restate professionals should keep their eyes open for the upcoming trend to hit the market. Knowing in advance about the market trends will give you an edge over your competition and helps you to serve your customers better.
Here are top 3 trends expected to shape the US real estate industry in the coming years.
1. Ready made Designs And Budgets
Today’s busy consumers look out for ready made designs from which they can choose their best suited design. They are interested to see a wide range of ready made designs that are created by creative experts using the best technology. Home buyers are searching for uniqueness and creativity while selecting their home designs. It’s important for real estate companies to offer house designs that emphasis comfort and within affordable budgets.
2. Architect Designed And Fixed Cost Houses
Homes that come with an advantage of contemporary and traditional designs using high technology and quality materials is the preferred choice. Emerging trend is to build an architectural design home without spending more money or compromising on material quality. Consumers believe it’s about building a comfortable and fixed cost residence. Buyers of homes are looking for a range of architect-designed homes that come at fixed costs. In a fixed cost model client pays a fixed price based on the value of the property, size of the property, location of the property and nature of the property.
3. 3D Site Visits
Consumers want to look and feel their home before buying it. The virtual 3D visit can offer the consumers the feel of the home before they decide on it. Consumers can actually see the plan of the house and arrange furniture with the help of 3D software. Construction companies are offering virtual tour to simulate a site visit so that home buyers can visit it remotely.
Not sure how to improve your real estate customer experience? Fret not, here are a few things you can do to get started.
For any business to grow and develop, a well-researched business strategy is a must. A major part of the strategy depends on the acceptance of the products by its customers. Social media intelligence gathered from customer data will help brands to identify areas of potential growth. There are several factors that attract people to buy a house that can transform the lives of people and improve their quality of life.
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