Home Buyers: Ask the Crucial Questions: I’m mad as hell and I’m not going to take it anymore. “Network,” 1976

Actor Peter Finch was talking about television networks that will do anything to grab big ratings when, playing a news anchorman gone mad, he beseeched viewers to demand better programming.

But he just as easily could have been talking about new-home buyers’ inability to obtain the data they need to make informed decisions in today’s market. At least that’s how sales developer Thomas Richey sees it.

The Houston-based Richey, who travels the country training sales agents in the finer points of marketing new houses, said that the majority of those he meets haven’t a clue about the things that are important to today’s buyers.

“As I get around the country, I see prospects who are hungry for information but can’t get it,” said Richey, whose client list is a veritable Who’s Who of home builders--Centex, Ryland, U.S. Home.

That’s because most salespeople are out of sync with the way people buy homes today, the marketing specialist believes. The house, the lot and the financing are still important, he said, but today’s buyers also are purchasing lifestyle, location, a sense of community, amenities, architectural controls, tax rates and a host of other perceived values.

“Today’s buyers are savvy and know what they want, and they won’t buy unless a pro-active salesperson gets in step with their pro-activity and causes value revelations to happen. That’s one reason buying cycles have been extended, because people can’t get their questions answered.”

But home buyers have a role to play as well: They must challenge the salesperson to convince them to buy this particular house in this particular neighborhood. And if they can’t get the facts they need, they should look elsewhere.

“The day of the glib ‘Here’s a brochure, the models are that way’ sales approach is over. And buyers shouldn’t stand for it any longer. In most markets, there are enough good builders with similar models in the same general area that you shouldn’t have to buy by default.”

Here’s a short checklist of some of the things you’ll need to know once you have a location and/or a community picked out:

* Floor plan. Will the layout work, not just as a matter of traffic flow, but for your family’s specific needs? And not just now but in the future? For example, are the children’s bedrooms near the master suite? Is the teenager’s room far enough away?

* Value-added components. What is this builder giving you that other’s aren’t? On this point, Richey finds it amazing how little most salespeople know about their competition.

* Quality. How’s the home built? What does this builder do that rivals don’t? Can the agent prove this with a demonstration in the field, not just the model?

* Brand names. Does the builder offer products whose names you recognize? Can you change brands if you want to upgrade or do you have to stay within the same product line? What kind of warranty comes with each product?

* Energy efficiency. Does the agent have a computer analysis proving energy efficiency, one that’s specific to the model you have in mind?

Here you should be looking for a package of coordinated construction and design features, as opposed to a number of random inclusions. It will make little difference in your utility bills if you get double-pane windows, for example, if the wall insulation is only enough to meet code.

You’ll also want to know if the builder uses certified contractors. If the insulation is installed incorrectly, you’ll lose 30% of your protection. And don’t settle for glittering generalities, either. Ask for proof.

* Location. What’s so great about this particular community? Are the schools any better? How about the shopping? The houses of worship? Are the tax rates more favorable?

* Urgency. Are there any advantages to buying now? What incentives is the builder offering and for how long?

* Options. What upgrades does this builder offer that aren’t available elsewhere or are less expensive than the competition’s.

* Customer Service. How does this builder handle problems after you move in? Who does the work? How fast will corrections be made? How will differences of opinion be rectified?

* Pricing. Will the builder hold the line on pricing? How can you be assured that the builder will not resort to random discounting that will erode your equity during slack sales periods or at the end of the project?

Approach buying a newly built home this way, Richey advised:

“I don’t know you. I don’t know your company. I don’t know the integrity of your company. I don’t know your quality standards. I don’t know your service policies. I don’t know your company’s track record. I don’t know what kind of house you build. Now, what was it you wanted to sell me?”

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Distributed by United Feature Syndicate.