Survey: New-Home Buyers More Satisfied in 2007

After closing on a newly-built home in 2007, owners reported higher satisfaction ratings on their purchases than those who made similar purchases only a year before, according to J.D. Power and Associates. Yearly surveys are conducted to track the approval level of customers with their new-home builders.

Incentives seem to be the factor that caused satisfaction levels to spike, according to Paula Sonkin, vice president of real estate and construction industries for J.D. Power. Builders are giving away an average of $16,500 in added perks that only a year before would have been paid by the customers. These perks come in the form of items that were traditionally considered add-ons, such as granite and marble baths. Once in a great while, someone even walks away with a swimming pool at no additional cost.

Not only are customers getting more for each dollar paid, but Sonkin said that customers perceive the quality is rising too.

"Quality is up and problems are down," she said. "We've seen builders go out of business, but builders that are surviving are finding ways to adapt to the market."

The more than 50,800 customers that were surveyed did not base these opinions on the appearance of the home as they walked through or at the closing date. These surveys were answered after the homeowners have lived in these newly built, single-family homes for four to 18 months.

Not only does the survey cover the construction of the home and the value for the money, it also asks about intangible factors, such as experiences with the sales and customer service staff, the home being built on schedule, the builder's design center, and (of course) the location.

Although price and location are critical to prospective home buyers as they choose a builder, Sonkin said those same factors are less important when it comes to satisfaction levels of homeowners once the builder has been selected.

How does J.D. Power select which builders will be included in the survey? First of all, a builder must have closed on a minimum of 125 homes in 2007. Home buyers were located from public records and were not contacted via the home builders. After contacting the buyers, at least 50 responses were necessary for the builder to be included in the results of the survey, according to Sonkin.

Who came out on top with the highest customer satisfaction? After 500 builders were ranked in 33 markets, the top of the heap are as follows: Pulte brands (which include Del Webb, DiVosta Homes and Pulte Homes), Cambridge Homes, Centex Homes, Darling Homes, David Weekley Homes, Eastwood Homes, Granville Homes, John Wieland Homes and Neighborhoods, Lakewood Homes, M/I Homes, Medallion Homes, Minto Communities, Shea Homes, Standard Pacific Homes, Tim Lewis Communities, and Trendmaker Homes (part of Weyerhaeuser Real Estate Co.).

Markets which topped the list of highest satisfaction were Sacramento, California; Orange County, California; Palm Beach, Florida; Minneapolis, Minnesota; and Inland Empire, California.

Does that mean you don't have to do your own homework when choosing a builder? Unfortunately, no. Sonkin suggests that rather than choosing a builder based solely on their ranking, you should do a little research on your own.

"New-home buyers should ask the builder questions," she said. "Everyone has well-meaning friends and relatives, but no one can tell you more about the house than the builder. You can't ask enough questions."

Beyond just asking questions of the builder, Sonkin encourages prospective buyers to ask questions of those who have already bought from the builder and lived in the homes for some time. The construction manager is also a great source of information.

"No one knows more about your individual home than the person in charge of building it," she added. Once the decision has finally been made, the builder has been chosen, and the home is being constructed, stay involved and keep asking those questions.

"You should also visit your home site," she urged. "If you're going to buy a new home, go watch your new home being built. Ask the warranty people lots of questions as well."

"The survey results don't surprise me," continued Sonkin, clearly pleased at the increase in customer satisfaction.