Since the 2008 crash, home improvement spending has increased from $281 billion, to more than $350 billion in 2014 as homeowners learn to appreciate the value of improving rather than moving. One statistic that indicates that people simply are developing a great love for home improvement is the fact that new homeowners are one of the largest spending groups on renovations. As a contractor, this is an ideal target marketing group for contractors.
While homeowners have learned to make their home into the home of their dreams, they have also applied this creative thinking to their new home shopping. Rather than looking for the home that is already perfect for them, they look for a home that can potentially be turned into what they need for less than purchasing it move-in ready.
As a contractor, there are several ways to take advantage of opportunities to market to new homeowners. One of the most valuable steps that you can take is developing relationships with people in the real estate industry. You may already have contacts among real estate developers and investors, but now is the time to network with realtors who deal with individual purchasers. Become the recommended name for home buyers before they even have the keys in their hands.
Homeowners have turned to renovations to build equity in their homes, and new homeowners are no exception. Hoping to create instant net worth in their new home, some people buy new homes with an ambitious vision for what their new home could be rather than what it is. By carefully planning the correct work to be completed in each home, it is possible for homeowners to have substantial equity in a home that they have purchased within the last year. Even if they don’t plan on selling right away, this is a financial situation that many homeowners are striving for after the real estate market crash of the last decade.
You can target this prospective client pool through relationships in the real estate industry. By obtaining lists of new home purchases, you can directly reach out to new homeowners with your specialty services, emergency hours, and new homeowner sales. Even if they do not plan immediate renovations, you can make sure that your name is the one that pops into their mind when they do. You want to be the contractor that welcomed them to their home and shared neighborhood tips or service information that helped them out.
This is one area of marketing where direct mail continues to be effective. By creating a new homeowner letter that is inviting and includes information that new homeowners need, you can begin to establish a relationship with prospective clients that could be mutually beneficial for years to come. They are very likely to have improvements in mind that they would like to make, and they are ripe for special offers and suggestions for making their new home even better.
Knowing some common renovations to offer new homebuyer specials on will increase your direct mailing response rate. One of the most common home improvement projects is increasing energy efficiency. New windows and doors, additional insulation, and high efficiency heating and cooling systems are in high demand among homeowners, whether purchasing a home or improving and existing one. Consider offering an energy saving special to new homeowners that includes options for these popular items.
Cosmetic improvements are also often on the top of new homeowners’ lists. While they may appreciate the savings that they recognized by purchasing a home that needs some work, when the time comes to move in they realize that they have a lot of work ahead of them. A special for something like fresh paint in three rooms, get one painted for free will look like a godsend to these frugal home purchasers.
Specials on updating kitchens and bathrooms are ideal for anyone on your mailing list. These rooms are the most frequently renovated and the ones that help homeowners increase the value of their homes by the greatest margins. You can offer complete room overhauls or put together affordable packages that include new flooring, backsplash, and paint for a quick facelift that makes the room appear brand new.
By focusing on new homeowners and what their renovation needs will be, you can build a strong customer base that will return to you year after year as they continue improvements to their home. Even better, when people ask how they got their home looking so great, it is your name that they will happily recommend.