J.D. Power ranks home builders/Pulte, Centex among market leaders

By Inman News, Wednesday, September 10, 2008

Brands of Pulte Homes Inc. ranked highest in customer satisfaction in a New-Home Builder Customer Satisfaction Study released Wednesday by J.D. Power and Associates. Overall customer satisfaction for all builders was 779 on a 1,000-point scale in 2008, J.D. Power reported, which is up from 741 in the 2007 survey, with overall satisfaction increasing in 28 of 29 markets that were surveyed in both 2007 and 2008. The 2008 survey includes 33 U.S. market areas.

Austin, Texas, was one of the 33 markets included in this survey, and the local results were slightly different than the national tally. David Weekley, Centex, and Standard Pacific Homes were the top three vote recipients, with David Weekley Homes receiving the Grand Overall Award for customer satisfaction. Several other Builders including DR Horton, Highland, Kimball-Hill, Legacy, Mercedes, and Ryland also scored highly.

Nine factors drive overall customer satisfaction with home builders (listed in order of importance): builder's sales staff (15%); builder's warranty/customer service staff (15%); workmanship/materials (14%); price/value (14%); home readiness (13%); construction manager (13%); recreational facilities provided by the builder (7%); builder's design center (6%); and location (4%).

"Home builders have adapted well to changes in the market that have necessitated a shift from an order-taking mode to an intensified focus on sales service and negotiation with prospective home buyers," said Paula Sonkin, vice president of the real estate and construction industries practice at J.D. Power and Associates. Strong home-building companies have recognized the importance of offering superior product quality, delivering homes on time and providing skilled sales staff in order to excel in hyper-competitive markets," said Sonkin. "With more negotiation occurring during the sales process, home buyers are receiving larger sales incentives. In addition, upgraded features that used to be considered options-such as granite countertops-are now being included as standard, which increases the perceived value of the home and subsequently results in increased satisfaction. With new-home prices on the decline in many areas, as well as larger inventories and renewed efforts of home builders to truly delight customers, it's a great time for consumers to consider buying a new home."

The study also finds that more than nine in 10 new-home buyers (92%) report receiving sales incentives. Among home buyers who report receiving incentives when purchasing their home, the average sales incentive totaled more than $16,500. The types of incentives that home buyers report receiving most often include a reduction in the base price of the home and credit toward options and upgrades.

For information on local Builders, and/or updated information on New Home Inventory discounts, contact Phil Hutson at (888) 410-5858, or go to www.showcaseofhomes.com.