Why is the New Homes industry ripe for Disruption? Because the New Homes Market is:
1. Huge – Nothing attracts tech investors more than a huge market. New Homes is a $300B+ subset of the largest ($2.3T/year) industry in the U.S., Real Estate. PropTech is hot. Most of the money has gone into Existing Homes. New Homes is next.
2. Fragmented – With nearly 50K builders in North America, there are no dominant players or standard practices. So there are few competitive barriers to outside disrupters.
3. Highly Inefficient – With many Sales and Marketing intermediaries that add tremendous time and costs to the purchasing process, New Homes is far from being a frictionless and efficient Direct-to-Consumer industry.
4. A Tech-laggard – New homes is a notoriously traditional business that uses outdated Sales and Marketing practices and systems. Customer Experience is poor and rife with pain, risk, friction and frustration. Technology has not yet been used to solve these problems.
Simple. It’s Game. Set. Match!
Build a marketplace Portal “gameboard” of buyers and products.
- Create a New Home Portal – This would be a cloud database of millions of home buyers and builders. It also serves as a destination to learn when, where, why and then how to buy New.
Set-up tools to play in this Portal game.
- Instead of the Seller dictating the service and experience, give Consumers the control via an App – The responsive design app would enable buyers to personally find, design and experience new homes.
- Instead of the Consumer coming to the Product, bring the Product to the Consumer – Instead of going to the homes, the app would bring the homes to the buyers virtually – anywhere, anytime and on any device.
Use the Portal network and tools to match and notify buyers of matching products.
- Match and Notify – The AI becomes a virtual matchmaker of buyer and custom homes by constantly searching, matching and notifying buyers of matching homes. Buyers can then remove, revise or buy AI-referred homes.
Continue to build on this business game with related business and services.
- Create Seamless Transaction – Go straight from match to purchase online culminating in a digital exchange of assets.
- Reward Customers – Once AI learns customers wants, it will continue to curate the customer experience and journey and even reward them with attractive offerings.
- Extend to Other Services – Once customers have utilized the Portal for a New Home purchase, continue to market and provide other related services for New Homes and Home Maintenance.