Real Estate Survey 2017

At the end of 2016, the first Belgian Real Estate Trust Barometer was published by WES Research. The report showed that 42% of Belgians have little or no trust in the real estate sector.

With Ziggu we wanted to examine this statement in-depth, specifically for the residential real estate developer. What is the cause of this problem? And which solutions can be provided?

We held a survey among buyers of newly constructed housing units in Flanders, Belgium. In total a 100 projects were scrutinised, ranging from small scale buildings with 2-3 housing units, up to large scale projects with 300 houses and/or apartments.

Net Promoter Score

How likely are you to recommend your real estate developer to friends and family?

This survey also shows that there is something wrong with the general satisfaction of the home buyer with his/her residential real estate developer.

The NPS of -42 reflects that only a mere 8% of the interviewees are likely to work with the same developer for a second time or recommend the company to friends or family. More astounding are the 50% ‘Detractors’, generally unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

[NPS = % Promoters – % Detractors]

8% Promoters [score: 9-10]

42% Passives [score: 7-8]

50% Detractors [score: 0-6]

Let’s take a detailed look at the journey of the homebuyer!

1. Sales Process

How did you find out about the building project?

What were the most important criteria when looking for your house/apartment?

Was the project presented in a way so you could build a clear picture?

Did you receive enough information about the financial aspects of your purchase?

How many times did you meet with the sales rep before purchasing your house?

42% of buyers need at least 3 appointments

Average lead time: 4,2 weeks

How much time was there between the first contact and the decision to purchase?

How satisfied were you with the sales process in general?

Recurring quotes

“The sales rep constantly referred to the specifications document, which was a pain to understand.

“Answers to questions arrived late or not at all.

“The sales rep lacked technical knowledge.

“We were happy with the sales rep until we learned (during construction) that some promises were not feasible.

2. Construction Phase

Were all promises made during the sales process fulfilled?

Did your real estate developer have an online environment where you could keep track of the progress?

For those who answered “yes”:

Did the online platform offer any added value?

For those who answered “no”:

Would an online platform offer added value?

How satisfied are you with the way you were kept informed?

Satisfaction rate rises 36% when there is online access to information!
In the researched projects this ranged from frequent news updates on website/social media up to in-house developed customer portals.

How satisfied are you with the support you received when dealing with choices and decisions?

Were you satisfied with the communication between you, the real estate developer and the different suppliers?

How many site visits were you able to do and were you satisfied with that?

Recurring quotes

“No clarity about schedules or due dates of important decisions, although that was the main reason for us to work with a developer.

“After signing the contract, communication decreased significantly.

“Buying our first home was a very emotional decision for us, but we did not really enjoy the process…

3. Financials

Was it clear when payments were due?

And what the remaining balance was?

Were additional costs clearly communicated and explained?

In general, did you get value for money?

Do you think that additional costs were priced correctly?

4. Aftercare

Did you receive sufficient information about your home and the technical installations for maintenance?

Did you contact your real estate developer after completion and delivery of your home?

Conclusion

Pain points for the home buyer

Insufficient communication between sales and project management
Insufficient and inefficient communication between developer – home buyer – contractors and suppliers
Insufficient support when dealing with decisions and choices
Insufficient insight in the day to day state of affairs
Insufficient support after completion

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