Can Homebuilders Save Expenses by Using Floor Planners?
Overspending is more often the case than not during a complex homebuilding project. Materials, labour, design work, marketing and sales procedures all contribute to final costs, and most of these factors tend to overstretch the planned budget. So, it’s no surprise that in an industry where change can be technically parametric, costs saved in every small area can have a knock-on effect on overall cost savings.
Studies show that 98% of construction projects overshoot their budget at some point. Although construction costs involving labour and materials tend to rise consistently despite the best laid plans of men, it may be possible to rein in increasing expenses at the design and marketing stages.
Top Cost Overrun Factors
- Inaccurate project estimates
- Design errors
- Change orders
- Sales & Marketing collaterals and relationship management
Accurate, early material cost estimates can help prevent homebuilders from excessive spending or wastage of materials due to inaccurate estimates. It also benefits customers from spending needlessly and excessively. A customised floor plan tool can show users the different kinds of materials that can be utilised in home interiors and costs can be effectively calculated for each option.
Proper estimates are crucial, as budgets and timelines have a direct impact on repaying lenders and early revenue generation. For mega projects involving public money, the smallest miscalculation can have an exponential effect on overall costs, leading to disastrous results.
Design errors can be minimised if both designers and home buyers are on the same page during each of the design phases. Having a digital planner can go a long way in dispelling confusion and errors in communication and understanding. With a visual representation of individual floor plans, design details become easier to understand.
Can help designers make changes at an early stage to satisfy potential buyers and avoid costly construction, which may then need to be modified.
Every time a designer or home buyer decides that certain features need to be modified during construction, increased costs ensue in the form of change orders. It is critical that these orders are minimised to help stick to planned budgets. Homebuilders using a home floor planner tool find that design changes required by customers can be integrated into the design early on, saving stress and construction expenses from resulting later.
Sales & Marketing
Sales teams typically build and sustain a relationship with potential customers until sales materialise and beyond. Marketing teams need to ally with sales teams to present the best possible, easily accessible home designs to attract and engage with these customers. How does using a floor planner tool for websites help both these homebuilder teams?
- Tell the story, sell the space. – By using a floor planner tool, it’s possible to create an alternative reality and narrate a story, helping buyers understand the potential of various spaces. It’s possible to show them what they can do by bringing a floor plan to life. When customers see a home’s potential, they will recognise its value and be encouraged to snap it up, smoothing cost negotiations.
- Say goodbye to show homes. – Typically, each type of home in a project is constructed and decorated with attractive interiors, expensive materials and the latest fixtures and electronic and electrical equipment to show home buyers what a dream home could be. With a digital floor planner, all the expenses linked to creating and maintaining a show home is markedly reduced or even eliminated, as buyers can view floor plans and elevations digitally.
- ‘Travel-less’ site visits – Save expenses associated with several trips to meet with and explain details to potential buyers. Sales teams can now communicate by phone or online while viewing floor plans and spaces without going to the site. A considerable proportion of time and money can be saved that would otherwise by spent on the road or on site to walk and talk potential buyers through a home, as they can experience a virtual floor plan from their chairs, at any time.
- Pitch properties with confidence. – Customised 3D floor plans make stronger pitches. Decoration and renovation can take a few seconds, not months, with interactive house floor plans and interactive furniture placement, making it easy and convenient to customise homes for client needs. Interior colour schemes and other facets of personalisation can be discussed, viewed and modified, paving the way for sales teams to close deals.
- Reduce lead times by 50%. – Sales teams can cut lead times by half while using floor plan applications. And as time is money, this is another aspect of financial savings homebuilders can look forward to.
- Follow up easily on leads. – A floor planner tool can save information about visitors so that the sales team can prioritise and contact potential buyers who have a strong interest in the property.
To know more about customised floor planner tools . . .
It’s evident that using a floor planner tool on its website can help homebuilders save expenses in several ways. As the use of interactive floor planners gain traction, homebuilders are increasingly looking overseas for partners who can provide floor plan applications that are accurate, engaging and cost effective, saving further expense.
XS CAD can provide a home floor planner tool and floor plan applications for homebuilders. As an interactive floor plan service provider, our range of digital floor planner services include a customized floor plan tool or floor planner tool, a floor planner tool for websites which feature a range of interactive house floor plans and interactive furniture placement.