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What can we learn from Amazon and Starbucks and how have these two giant companies influences homebuyers today? Both companies are beloved in our household.

It is 4:30 in the morning and our ring doorbell has informed us there was someone at our front door. It was Amazon making a delivery. That would not be the only time Amazon would grace our front doorstep. Later that same day, we got a delivery around 7:30pm. These were deliveries for items Guy had ordered the day before. Amazon has indeed mastered a sense of urgency with their quick and easy ordering and delivery. They’ve become so ubiquitous in our lives that we design vestibules for deliveries in some new homes.

On the other hand, when I order something not through Amazon, the delivery is so delayed that I have forgotten what I ordered by the time it arrives. “Ah – that’s the dress I ordered for our Italy trip.” Too bad it came after we got back from the trip. I now just take a screenshot of what I want to order and send it to Guy to complete the order.

Starbucks has mastered the art of customization. Sure, you can order just a simple cup of coffee, but you can also order a Caramel Ribbon Crunch Frappuccino with 13 modifications including extra caramel, ice, whipped cream, and get it doubled blended. All that, and Starbucks will hand you your custom-made drink with your name on it. Starbucks has normalized the expectation that a mass-produced product can still feel personally made for you. My custom order is an iced doppio (double) espresso in a tall cup with a splash of half and half. I call it my grownup milk shake.

What does this have to do with selling houses? Let’s consider how each experience has affected buyers’ expectations.

The Amazon Effect – I want it now!

This is where the concept of Move-in Ready homes really shines. Instead of waiting six to ten months for a pre-sold home, move-in ready means no waiting. “I need a house, I found one I like. Why can’t I have it NOW?”

There are many reasons why buyers have a true urgency for a new home. It could be a job relocation, a divorce, a marriage, a baby coming, or their existing home sold more quickly than expected.

Another camp of buyers gets gridlocked over too many decisions and an overwhelming number of selections that come with a pre-sale home. A friend of ours said their marriage wouldn’t survive building a custom or pre-sale home. He is too impatient, and she struggles with so many decisions.

When you couple these buyers with the Amazon effect, having an inventory of move-in-ready homes can be a powerful strategy. Since so many buyers fall in love with the model home, having an inventory of move-in ready homes the same design as the model is a great strategy. I love how the messaging has changed from a spec home is “the house nobody has bought yet” to “an inventory home intentionally designed and held for the next buyer.”

The Starbucks Effect – I want it my way

Starbucks has changed customization from a luxury to an expectation. So if Starbucks can make loyal customers with their customizations on a beverage, think how powerful applying the idea of customization to something as impactful and meaningful as one’s home can be. Customers want to feel that they made a home of their own. Like Starbucks, it can start with something already on the “menu” or in the builder’s portfolio of plans. Then, with a controlled set of options and selections, let the buyer personalize the pieces that are emotionally important to them.

The menu of custom selections could include:

• Three exterior styles
  
• Four style specific color selections
• Kitchen cabinets
• Door styles, materials, and colors
• Countertop material and color
• Flooring choices
• Hardware and interior trim packages
• Predesign options:
  • Flex room to den to pet room to storage
    
  • Tub and shower in primary bath or large oversized shower.

Creating a balance between choice, price, and delivery is the builder’s challenge. Having built both a production home and a custom home, the design center and the designers who procure the selections are key.

Have Your Cake and Eat it

What happens when the Starbucks effect collides with the Amazon effect? Can you satisfy both “I want it my way” and “I want it now”? While they do seem at odds to each other, here are some strategies.

Designer Ready Homes – “Your way, without the long wait.”

This is a home that is fully framed and dried in, but the buyer can still select interior colors and finishes. This could include:

• Cabinets, countertops, and backsplash
• Flooring
• Interior wall & trim paint colors
• Light fixtures
• Hardware

The timing of when to offer these homes for sale and limiting the selections to what is available now is the key. This is especially true in a market where the building process takes longer because of permitting, trusses, etc.

Offer Both Pre-sales and Move-In ready homes

Many builders have found that offering both Move-in Ready and pre-sales is a proven scheme to capture both buyer types. Perhaps even a third option could include Designer Ready Homes.