I get asked this allot so I thought I’d post it here as it is even more relevant in today’s economy.

Most people expect me to say “do it all in 3D don’t build models” … WRONG … You should always build at least one Model home unless you are doing a heavy pre-construction marketing campaign (build registrations, create a buzz, test the market, etc) … the old adage that what you build you sell is to a large extent true and I feel that the ability to touch and feel a home is essential in closing a sale.

What I would recommend is to definitely build fewer and use the money you save (see below) to have at a minimum 3D floor plans or even better have 3D interior/exterior animations done. Here is why:

Model Home

Costs/model: $40 - 60K Interior Merchandising & Design, Cost to build carried until model sold, security, landscaping and maintenance, utilities, $2k in photography for collateral.

Benefits: Ultimate way to communicate builder quality, great experience for families to visit for everyone to connect with a design (if that design is built), provides a great location for sales environment if no sales center/trailer built, allows the sales team to watch/listen to prospects as they are touring the home(s) … if they are touring with them.

Virtual Model Home

Costs/model: $6,000 - 10,000 depending on size

Benefits: Leverage the animations to get renderings from the interiors and exteriors and use all of this content on your website, in emails, print for sales center, billboards and Direct Mail, test the market before committing to construction, satisfy the need that your purchasers are looking for…that rich media experience.

There are so many more advantages to this but none more compelling than what you will save by building ONE fewer model home will pay to have ALL of them at least in 3D Floor Plans if not all fully animated which will give you a much better online experience which will give you better traffic to your sales center which … i think you can handle the rest

Jim Warren, CEO