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.

Real_Estate_Barometer

Net Promoter Score 

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

Net Promoter Score EN

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?

How did you find
legend_english

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

most_important_Criteria_project
legend_decision_makers

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

Was everything presented clearly?

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

Enough information for financial info

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

Meetings_sales_percentage

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?

Sales_process_time_perentage

How satisfied were you with the sales process in general?

Satisfied with sales process
Satisfaction_legend

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?

Promises_Fulfilled

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

Digital_environment_Construction
For those who answered “yes”:
Did the online platform offer any added value?
Digital_environment_yn
For those who answered “no”:
Would an online platform offer added value?
Digital_environment

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

Happiness_updates
Satisfaction_legend

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?

Guidance_decisions
Satisfaction_legend

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

Customer_Satisfaction

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

site visits satisfaction rate

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?

Invoice_oversight_small

And what the remaining balance was?

remaining_balance_small

Were additional costs clearly communicated and explained?

extra_costs_communication

In general, did you get value for money?

price_quality_RED

Do you think that additional costs were priced correctly?

additional_Costs_red

 

4. Aftercare

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

Technical_document

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

Contact_real_estate_Developer

 

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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