Protecting Your Backlog

With rising interest rates and a softening market, many builders face high cancellation rates as customers reconsider and or walk away from their original purchase decision. Although no builder is immune from cancellations, builders and sales agents can use several strategies to minimize cancelled customers.

Smart builders escalate relationships with their backlog customers by keeping in touch. No news is good news for customers who believe they may have made a bad decision when agreeing to buy a home. If customers don't hear from the builder, they might think there's no progress on the construction of the home — and wonder if there's a good way out of the deal.

At the same time, a sales agent does not look forward to calling customers who they think may be considering canceling their home. Again, they assume no news is good news. Many sales agents assume that by not calling the customer they have eliminated or postponed the chance of a cancellation.

It is very important to communicate regularly with every customer in backlog a minimum of once every two weeks. Ask yourself, from a customer's perspective, who would you rather disappoint: a company and a sales person who you barely know and haven't heard from, or a trusted friend and company representative who calls and keeps you abreast of the status of your home?

So how do you stay in touch and provide purposeful information for customers in backlog? Begin with the following premise to every phone call:

1. I personally walked your homes this week and this is what I observed.
   
2. I spoke to the builder (or superintendent) who is building your home this week, and this is what he/she said about your home.