How AI is Changing New Home Buyer Behavior

Artificial Intelligence is everywhere. It’s on your phone and devices. It is embedded in your web browser, search engines and social media. It’s changing how we find and use information, and in many cases, our daily behaviors. Sales & Marketing teams are scrambling to learn how to use AI in their sales processes to better connect with and keep in touch with buyers. But, before you start overhauling your sales workflow, it might be helpful to understand how homebuyers are using AI to shop for their new homes.

We’ve been assured that AI will never replace a real, human salesperson. I still believe that (at least, not in the immediate future). However, AI is already replacing much of what we sales folks have historically done to help our prospects make buying decisions.  

I recently watched a video by business consultant Christopher Penn titled, How Sales Is Changing in a Chaotic, AI World. He states that, since buyers are usually uncomfortable with the typical sales process – contacting a stranger (you) for information, then being inundated with emails, texts and pitches to buy –  the next phase of Selling will be Customer Empowerment, giving buyers all the information they need so they can plug it into their AI tools for analysis and recommendations.  

That got me thinking about how they might be using AI now and bypassing the typical sales process already. So, I did my own experiment and had the following conversation with ChatGPT:

My question:

Act as a new home consultant. I have 2 acres of land in Kentucky and want to put a 3-bedroom home on that property. What is my best option for a budget not to exceed $250,000?

ChatGP’s Answer:

With a budget of $250,000 for a 3-bedroom home on your 2-acre property in Kentucky, you have several viable options. Here’s a breakdown to help you make an informed decision:

🏗️ Building a Custom Site-Built Home

• Cost Estimate: Approximately $100–$200 per square foot. Richr
• Example: A 1,500 sq. ft. home at $150/sq ft would cost around $225,000, excluding land.
• Considerations:
  • Land Prep: Clearing and leveling the land can add $1,500–$3,000.
  • Permits: Building permits may cost up to $4,000. Houzeo
  • Utilities: Hooking up water, electricity, and sewage can range from $1,000 to over $25,000, depending on location and infrastructure. Investopedia
  • Timeline: Construction can take 9–12 months.
• Pros:
  • Fully customizable design.
  • Potential for increased property value.
• Cons:
  • Longer construction time.
  • Higher upfront costs.

🏠 Modular or Prefabricated Homes

• Cost Estimate: Typically $90–$150 per square foot. Houzeo
• Example: A 1,500 sq. ft. modular home at $120/sq ft would cost around $180,000, excluding land.
• Example Model: The “Here Comes the Sun” by Clayton Homes offers 1,136 sq. ft. with 3 bedrooms and 2 baths for approximately $101,317.
• Pros:
  • Faster construction timeline (typically 3–6 months).
  • Lower upfront costs.
  • Energy-efficient designs available.
• Cons:
  • Limited customization options.
  • Potentially lower resale value compared to custom-built homes.

🏡 Manufactured Homes

• Cost Estimate: Generally $50–$100 per square foot.
• Example: A 1,500 sq. ft. manufactured home at $75/sq ft would cost around $112,500, excluding land.
• Pros:
  • Most affordable option.
  • Quick setup and occupancy.
• Cons:
  • May depreciate over time.
  • Limited customization and design flexibility.

💡 Recommendations

• Best Value: A modular or prefabricated home offers a balance between cost, customization, and construction time.
• Custom Build: If you prioritize personalization and long-term investment, consider a custom-built home, keeping in mind the extended timeline and higher costs.
• Budget-Friendly: For the most economical option, a manufactured home provides affordability and quick occupancy.

Would you like assistance in exploring specific models or connecting with local builders and manufacturers in Kentucky?

You said:

Can you recommend a modular home builder near me?

ChatGPT said:

Certainly! Given your location in Somerset, Kentucky, and your interest in a 3-bedroom modular home within a $250,000 budget, here are some reputable modular home builders and dealers near you:

[ChatGPT offered 3 suggestions within 2 hours of me – Clayton, Republic, and KY Dream Homes, including directions, phone and a link to their website.]

Next Steps:

1. Visit Showrooms: Schedule visits to the above dealers to tour model homes and discuss customization options.
2. Consultation: Engage with their sales consultants to align your preferences with available floor plans and features within your budget.
3. Financing: Inquire about financing options, including loans specific to modular homes, to understand your purchasing power.
4. Site Preparation: Discuss land preparation requirements, including foundation work and utility hookups, to ensure your site is ready for installation.
5. Timeline: Establish a clear timeline for delivery and installation to plan accordingly.

If you need assistance comparing specific models or have questions about the home buying process, feel free to ask!

—– End of ChatGPT Conversation —–

How many of these conversations are already taking place every day without us ever knowing, and how do we become part of the process?  ChatGPT did give me three places to call and suggested that the next step would be to visit a sales model and talk to a salesperson. But interestingly, some of the most prominent retailers in my area were not on that list!

My takeaways are:

• AI doesn’t think, it calculates and aggregates information.  If we want to be part of the solution offered, we need to be seen as such by AI.  Having a website that gets found and searched by AI agents is even more important now than it has ever been.
• Be transparent and open with your information.  Since AI deals strictly in information, make sure yours is findable and accurate.
• Be aware that when a customer comes onto your lot, they likely already know volumes about your product and pricing, as well as that of your competitors.  It may not be accurate, but they already trust what their AI agent has told them, and they are expecting you to verify that.

Yes, it is a turbulent time to be selling homes. Old sales systems can’t be relied on, and even new ones are quickly becoming outdated and replaced. But the role of the human salesperson as a trusted guide and mentor isn’t dead yet. Those of us that understand how the buying process is enabling buyers – and embrace that – are the ones that will thrive in the months to come.