How Will Social Distancing Alter New Home Marketing?

SANTA CLARA, CA—Developers are seeing construction ratchet up now that projects are once again underway. As an example, developer SummerHill Homes’ nearly $1 billion Nuevo has some homes completed and residents moved in, but the larger development still has a ways to go for the full master-planned urban town to reach completion.

Overall, SummerHill was surprised to discover that despite the quarantine in the Bay Area, prospective buyers want to tour even if it means virtual walkthroughs, Zoom tours, etc. Homes at Nuevo, which usually cater to first-time homebuyers or Baby Boomers wanting to relocate to suburban new construction, range from $1 to 2 million.

Robert Freed, CEO of SummerHill Homes, recently discussed how social distancing is changing the way homes are marketed, how will grand opening celebrations be different, how sales interest has increased, the importance of human interaction in the sales process and if the slower progress of construction will affect any future developments.

GlobeSt.com: While social distancing is somewhat easy to practice on construction sites, how difficult is it for sales centers?

Freed: We thankfully were able to act swiftly in response to COVID-19, immediately practicing social distancing protocol within our sales centers. We implemented new procedures for welcoming prospective buyers and scheduling tours, adjusted staffing schedules, as well as made digital enhancements to our website, all in an effort to provide privacy, safety and peace of mind to our customers and associates.

Our sales centers are currently open by appointment and we have several options available such as in-person/private tours, tours via video-conferencing (FaceTime, Zoom, etc.), and we’ve increased all online photography and 3D/virtual tours. We have added social distancing signage, sanitization stations and in some locations we’re installing Plexiglas partitions for additional protection. Prospective buyers are welcome to tour, obtain information and ask questions in an environment that is enduringly inviting and most importantly, clean and safe.

GlobeSt.com: How will grand opening celebrations/announcements look different moving forward?

Freed: We’re excited to host this very event this summer, in fact, at our newest community in Mountain View, Montecito. We envision it will include both traditional and non-traditional aspects of a grand opening event, likely a digital ticket to attend with a dedicated time slot as well as allowing limited guests to tour model homes. Of course, we may not have face-painting or a photo booth, but we do intend to celebrate our accomplishment with our buyers, homeowners and associates. As for our favorite ice cream truck, we’ll all just have to stay 6 feet apart.

GlobeSt.com: Have you seen an uptick in sales interest upon the economy slowly reopening?

Freed: We’ve seen an increase in traffic and we anticipate our traffic numbers to climb, but to resume our pre-COVID-19 levels will take some time. We saw close to a 70% drop in traffic from February to March, but expect May and June to increase 100% from prior months. We’ve recently experienced those who have resumed their lifestyles under what has been deemed our new normal, while others may be slower to adjust their individual comfort levels. There are prospective buyers out there–whether actively engaging or newly emerging–who are searching for a new home.

GlobeSt.com: How important do you think the human interaction is between a prospective buyer and a sales agent for successfully selling a home?

Freed: Without a doubt, there is an innate and essential need for human interaction. However, as we’ve experienced these past several weeks, there are alternate forms of human interaction we’re able to utilize to create a healthy balance of virtual and reality. We continue to have a need for experienced, seasoned salespeople to guide and educate our buyers. Perhaps now more than ever, buyers will need a skilled professional to build a rapport with, even if the means are via video conferencing which will assist in one of the most important decisions they’ll face. While we can’t replace the role of a salesperson, we can and should adapt, become more flexible and use this time as an opportunity to be both sales leaders as well as experts in digital communication.

GlobeSt.com: Will this slower progress of construction affect any future developments?

Freed: While we anticipate some loss of productivity due to the important filed safety protocols, we do not expect any material negative financial impacts to the projects under construction or planned future developments. We also hold some hope that this loss in productivity may be offset by some future construction cost reductions.

GlobeSt.com: Some have noted that housing will be the solution, not the problem, to our current recession. Do you agree and are you optimistic for the future?

Freed: I would say at this moment in time, it is unclear what the future holds. Some early indicators suggest that new home sales may rebound quickly as a result of favorable interest mortgage interest rates, existing pent-up demand and new demand from buyers who wish to have their sanctuary to live, work and feel safe.