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WRAP UP
March 23–25 | Austin, TX
www.techomebuilder.com
2 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
Top Plays from the 2015 Summit
Introduction
Trying Tech:
Four Builders Give Their Tips
Millennials Hold the Promise for the
Next Building Boom
Home, Sweet (Smart) Home:
Rising Numbers Forecast
Internet of Things Explosion
Updating the Tech Approach
for the Do-It-Yourself Market
Faces of the Summit
Selling the New American Dream
Here’s a Bright Idea:
Use Bloggers to Market for You!
10 Questions to Ask When
Considering Home Automation
Lennar Redefines Builders’ Role in
Implementing Tech
We’re Searching for
TecHome Master Builders
4
6
8
10
12
14
16
18
20
24
25
4 TecHome Builder Summit 2015 Wrap Up
Trying Tech:Forget the
Engine That Could
Be the Engine That Will
The second annual TecHome Builder Summit is behind
us, but builders are going full steam ahead with the
relationships they fostered and education they received
during Summit sessions, group presentations, one-on-
one meetings and networking events.
The event saw a 50 percent increase in
builder guests. More than 100 decision-
making executives from the nation’s top
building companies attended. And more than
60 brands represented the industry’s leading
technology providers.
What’s even more impressive–nearly 85
percent of the builder guests agreed that
they were considering switching vendors and
over 80 percent strongly agreed that they’d
be including more technology as standard as
a result of the Summit.
So what’s next? Now it’s important to keep
the momentum going and get on track for
what we call TecHome Master Builder status
(see p. 25).
Builders must target the key homebuying
markets in a personalized way, take
advantage of the smart home explosion,
and implement the tips they gathered at
this laser-focused TecHome event.
5www.techomebuilder.com
“Technology is going to be the norm.
Any new home that’s built 10 years from
now, it’s going to be standard in every
one. If you don’t get with the times,
you’re done.”
– Steven Showalter
Ron Terry Construction, Northwest Montana
6 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
Worth nearly $60 billion in the next five years,
the smart home market is growing at light
speed. It’s a key reason why high-volume
builders are scrambling to tap into home tech.
New research from MarketsandMarkets
shows the global smart home market was
valued at $20.38 billion in 2014 and is
expected to reach $58.68 billion by 2020, a
17 percent growth rate over just six years.
There’s a lot of money out there, but getting
a piece of it is harder than you might think.
High-volume builders have the burden of
finding a partner and package that works for
their customers’ lifestyles and price points.
Their success depends on it.
“It’s something that you’re going to have to
do regardless of how you do it,” says Clint
Skibinski of McBride and Son Homes.
Trying Tech:
Four Builders Give Their Tips
Insider info
from the
TecHome
Builder
Summit
“Whether you offer technology
as a standard package, build
your business around it
or completely outsource it
to an outside provider, it’s
something that is going to be
around–and more involved in
the homebuilding process.”
Skibinski is one of more than 100 decision-
makers learning from his experiences
with other builders, integrators and
manufacturers at the 2015 TecHome Builder
Summit. Now, he and a few other builders
are offering some insider tips to others about
how they plan to implement tech.
Most Popular Builder Tips
Most builders agree that the first
thing you need to do is to find a
partner and platform you can trust,
educate yourself and your staff
about the tech you’re selling and
create a base package that includes
a few options (such as a security
system and lighting) that the
homebuyer can add later.
Following these tips will have
you on the fast track to recurring
revenue and give you an
opportunity to tap into that $60
billion goldmine that the smart
home market is poised to become.
7www.techomebuilder.com
Clint Skibinski
McBride and Son Homes, Missouri
1.	 Find a good partner and platform that’ll be around for a while.
(He likes Clare Controls, Savant and GE)
2.	 Know your homebuyer.
(Do they want tech offered as a standard or prewiring for later?)
3.	 Know your market.
(If energy is cheap, don’t focus on energy-efficient technologies)
Chris Hinch
Essex Homes, South and North Carolina
1.	 Offer a base package.
(High-volume customers won’t pay high prices later for options)
2.	 Hide the smart home cost.
(Once they have it, they want more)
3.	 Contact customers six months later with affordable upgrades.
(A $40 light switch is an easier sell than a $1,000 system)
Steven Showalter
Ron Terry Construction, Montana
1.	 Educate sales staff.
(If they don’t try it, they can’t sell it)
2.	 Find an electrician or integrator who knows how to
implement tech.
3.	 Prepare home with wiring so that buyers can upgrade later.
Jakki Brunn
Kaerek Homes, Wisconsin
1.	 Bundle packages together for a better price point.
(Test the market beforehand)
2.	 Install expandable systems
(Use a structured wiring package to start and go from there)
3.	 Think of ways to make tech sexy.
(Promote lifestyle vs. pieces of technology)
Insider Tips
8 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
Let’s begin with some common
misconceptions about the first generation
who’ve lived all their lives in the Digital Age—
the generation that represents the greatest
opportunity for significant growth in the
homebuilding marketplace since the Baby
Boomers left Woodstock.
Top 4 Millennial Myths
Myth 1: Millennials are pessimistic by nature.
Reality: They are overly optimistic.
Myth 2: They’re all broke.
Reality: Many have already made it into the
ranks of the wealthiest households.
Myth 3: They’re self-absorbed.
Reality: They take great pride in self-
expression and individuality but connect with
causes, people and companies they respect.
Myth 4: They’re frivolous spenders.
Reality: Millennials are bigger deal/discount
shoppers than any other generation, but
brands, cause and reputation matter.
These were just a few of the takeaways from a
TecHome Builder Summit session on marketing
to Boomers and Millennials, which featured
Steven Koenig, director of industry analysis
for the Consumer Electronics Association,
and Tim Costello, president of Builders Digital
Experience (BDX).
Millennials Hold
the Promise
for the Next Building Boom
Builders must look to technology and novel approaches to market to the digital generation.
The environmentally conscious and wildly
social Millennials will form 24 million new
households from 2015 to 2025, according to
a report from Harvard University: “Given the
sheer volume of young adults coming of age,
the number of households in their 30s should
increase by 2.7 million over the coming decade,
which should boost demand for new housing.”
Whereas Boomers view technology as a
helpful tool for convenience, energy savings
and aging in place, Millennials view tech as
mission critical. “They are more tolerant of
complexity and expect obsolescence more
than Boomers,” said Costello.
Marketing to Millennials
In a time when the new home market share
lost 9 percent between 1995 and 2013—and
even the biggest builders are outsold by
used homes 100 to 1—successful builders
must transform the customer experience
using technologies and focus on innovation,
convenience, capability, the environment and
energy savings—all things that support the
younger buyer’s digital lifestyle.
“Based on the population pyramid for the
United States, we will have to wait 24 years,
until 2039, for Millennials to enter their peak
earning and buying period at ages 46 to 50,”
Costello said. “And if you’re a builder, 24 years is
a long time to wait to do nothing.”
What do Koenig and Costello recommend that
builders should do in the meantime? They need
to make buying a new home a more attractive
option for young buyers’ lifestyles.
9www.techomebuilder.com
To market more effectively, builders must
improve the attractiveness of ownership by
designing and building a different housing
solution. To compete both with the used-
home market and the higher-end rental
market—where trendy locations, custom
amenities, connected technologies and
socializing opportunities are already
paramount—builders must pay close
attention to the Millennials’ desires for
personalization and modern design as
well as sustainable, socially responsible,
maintenance-free living.
Another option is providing some form of
economic assistance, lowering the cost
of ownership will draw Millennials away
from the existing-home and rental markets.
Builders can use a combination of interactive
and personalization tools, ingredient branding
and event marketing to keep the attention of
those customers.
Also, rethinking the model of the single-
family home entirely is becoming an
increasingly important consideration.
“Millennials are often looking for smaller,
single-occupant housing as well as
reconfigurable housing to double-up with
other buyers,” said Costello.
Final myth: The future can wait.
Reality: It’s already knocking at
your door.
80 million Millennials (24% of U.S.)
Median income: $25,000 for ages 18-27 and
$48,000 for ages 28-36
21 million still live at home with parents (but this
trend is changing)
23% hold a bachelor’s degree or higher
39% are still in school
Average student loan debt: $33,000
21% are married, compared with 42% for
Boomers at same age; 20% are same-sex couples
Most racially/ethnically diverse/bilingual
generation: 19% Hispanic, 14% African
American and 5% Asian
Take five years longer to marry and have their
first child (compared to 1970)
90% prefer owning to renting
77% rely on family member input for
major decisions
51% make decisions based on
recommendations from company websites
40% would like to live in an urban area in
the future
The Rundown
on Millennials in 2015
“TecHome features that are
compatible with Millennials’
connected lifestyles—
from home offices and
charging stations to
improved cell reception and
automation—these are not
wants but expectations for
most younger buyers,”
Costello said.
10 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
Mobile broadband is emerging as the fastest-
growing technology in human history, says a
new report from the International Broadband
Commission for Digital Development.
“More than 2.3 billion people had access to
mobile broadband by the end of 2014, and
this figure will climb steeply to a predicted
7.6 billion within the next five years,” said
Matthew Pine, director of marketing for
Carrier, in a TecHome Builder Summit session
on the Internet of Things and the Monitored
and Managed Home.
Home, Sweet
(Smart) Home:
Rising Numbers Forecast Internet of Things Explosion.
Pine noted that the number of residential
gateways and routers deployed by broadband
service providers around the world will
increase to 120 million by 2017, according to
Parks Associates.
Millennials, Pine said, are amplifying
these trends. “When it comes to the next
generation of homeowners, more than
half—56 percent—of Millennials surveyed
by Better Homes and Gardens believe home
technology capabilities are more important
than curb appeal,” Pine said.
11www.techomebuilder.com
“Homebuilders must
capitalize on the
opportunity to have a
lifetime relationship with
the consumer,” said Pine.
“Customer satisfaction
means you don’t just
deliver a smart home, you
deliver a smart solution.”
“If a home is not up-to-date with the latest
tech capabilities, 64 percent of Millennials
would simply not consider living there.”
In addition, 84 percent of the younger
Americans surveyed believe that technology
is an absolute essential to have in their
homes. The most sought-after technologies
are an energy-efficient washer and dryer
(57 percent), security system (48 percent)
and smart thermostat (44 percent).
“And smarter doesn’t just
translate to technologies,”
Pine added.
“Millennials are more concerned than
any other group with their environmental
impact and look for ways to reduce their
energy use.”
As key takeaways, Pine stressed that
homebuilders must build internal
competency and capability in the connected
home while developing a strategy to insource
or outsource to reliable, long-term partners
such as manufacturers and contractors.
12 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
Millennials love technology and want to set it up
themselves, causing builders to figure out ways to
sell it as a DIY gateway.
Updating the
Tech Approach
for the Do-It-Yourself Market
Unlike Boomers who can afford high-end
devices may be a little more uncomfortable
with the tech components, Millennials are
happy with the basics and have confidence
that they can install much of it themselves.
“All week I’ve been making a list of things I want
to retrofit into my own house,” said Conley
Black, a Millennial and new home consultant
for Goodall Homes in Nashville. However, when
one of his friends bought a house through
Goodall, he told Black, “I was disappointed that
you don’t offer any automation.”
This got Black thinking about technology and
led him to the TecHome Builder Summit. “If
you offer technology to Millennials and if it’s
priced right, they’ll buy it,” he said.
“They can do it themselves; they don’t have
to pay us 40 percent more. But we want to
make it easier for them. You can do it later
and pay $1,000 out of pocket or pay $5,000
and do it now.”
Maybe it isn’t such a hard sell, but it can be
intimidating for salespeople who don’t know
about the latest products.
Offering Millennials the opportunity to roll
tech expenses into their mortgage makes
the professionally installed option that much
more appealing.
Laurie Myers, purchasing and design manager
at Nilson Homes in Northern Utah, said,
“More customers are coming
in asking questions about
technology. And we’ve got the
deer-in-the-headlights look.
They want tech included in
their loans; they don’t want to
go aftermarket.”
“I’m trying to implement the
tech now so that we can keep
our market position, stay on top,
keep innovating and just stay
ahead of the competition.”
– Stephen Kromer
Kromer Investments,
Reno, Nevada
13www.techomebuilder.com
Her company is considering smart garage door
openers, lock systems and a smart thermostat
as a standard for Millennials and then putting
together packages of additional options.
Clayton Burnham, another Millennial and
estimating manager at Hubble Homes in
Boise, Idaho, said selling technology to
Millennials doesn’t have to mean offering a
fully connected home.
It can be as simple as including structured
wiring, which can encourage Millennial
DIYers to add more features during the sales
process and afterward.
“Making sure that whatever
they have in their homes is
adaptable to future needs is
going to be important.”
“[These] are people that are
online constantly and they
don’t trust anyone to do
it themselves, so you can
create that infrastructure in
the wall and they can build
upon that system how they
like,” said Burnham. “All
our buyers have different
price points they’re trying
to meet, so we have to have
tiered levels of what they
can do.”
14 TecHome Builder Summit 2015 Wrap Up
Trying Tech:Faces
of the
Summit
15www.techomebuilder.com
NOW KNOWN AS
16 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
“We have a new American Dream;
it’s not the same as it was. It’s not
to own a home now; it’s to have a
lifestyle. Can I provide myself with
the lifestyle I want, and how best
can I do that?” leadership coach
Mike Moore told builders during a
TecHome Builder Summit session.
Homes are no longer the investment they were;
they are now the focal point of a lifestyle. So how
do you sell a lifestyle?
Selling theNew American Dream
Builders trying to recapture the customers
they had before the housing boom went bust
need to recognize these changes, and those
who can adapt and evolve will see success.
One way for builders to do that is to include
technology packages in their homes so that
they can differentiate themselves from the
competition and market their homes as a
lifestyle choice.
Moore said that builders will get more interest
and payback if they are more aggressive with
the technology packages they include in their
homes on all levels: starter homes, step-ups
and aging-in-place homes.
“You are no longer production builders; you
are builders who build personalized homes
on a schedule now. It’s the first mindset that
you have to change, and if you don’t change
it you’ll continue to struggle,” he said.
17www.techomebuilder.com
He then set the audience loose to
brainstorm answers to three questions for
three groups of buyers: First-time, Step-ups
and Final Destination buyers:
In your next community what will be the
technology standard and what will be the
upgrade technology?
How will you better prepare salespeople
to use the new home technology?
How will you change the sales
environment?
Most of the builders agreed that their
offering would range from structured
wiring, a connected thermostat, Wi-Fi
and light controls to à la carte options for
Millennials willing to pay for them, as well
as larger packages such as security systems,
full lighting control and an entertainment
package for step-up homes and for Boomers
heading into retirement.
What most interested the crowd, however,
were the responses on how to sell the tech
packages. Some of the answers received
high approval.
Barbara Friedman, a project consultant for
Legacy Design Build Remodeling, suggested
that as well as training their sales staff to
sell technology, builders should also hire
Millennials to sell it.
“Hire Millennials—make sure they’re trained
and updated on new developments. [And]
maybe give them a $500 basic system in their
home. It would be the best of both worlds,”
Friedman said.
David Patterson of the PulteGroup said
salespeople need to understand what they’re
selling to be successful. Vendors should train
home salespeople in how to use and sell the
products.
“If the salespeople don’t know
how to sell it, you’re not doing
yourselves any good by offering it.”
Friedman’s group suggested handing Millennial
customers a tablet and letting them wander
through a model home. The tablet would
include the needed apps, and beacons that
automatically display selling features and show
the buyer how to interact with the devices
would be placed throughout the house.
18 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
Mike Moore of Moore Leadership and
Peak Performance may have some great
ideas when it comes to marketing home
technology and boosting sales, but one
idea that had builders talking after the
roundtable session came from one of their
own—Michelle Brunn, vice president of sales
at Granville Homes. That idea was to get
bloggers to market the house for the builder.
“The idea came during our brainstorming
session on unique ideas to market to
Millennials,” she says. “Since we know
testimonials are a great way of marketing—
having bloggers (mommies, foodies,
vacationers and so on) stay in the models
and blog about their experience seems like
a unique way to penetrate this market and
spread the word.”
Brunn is also putting her money where her
mouth is. She has reached out to several
California vacation bloggers to measure their
interest in staying in a model vacation home
in the Sunrock at Shaver Lake community
and writing about their observations on a
voluntary basis. This area is known for its
clean mountain air, fragrant pines and plenty
of summer and winter activities.
“We are the same distance between San
Francisco and Lake Tahoe to San Francisco
to Shaver Lake but are a third of the price
because most people aren’t aware of the
area,” says Brunn.
Homebuilder to host vacationers in return for
blog content.
Here’s a Bright Idea:
Use Bloggers to Market for You!
Of course, guidelines would have to be put in
place so that the model isn't damaged. The
frequency of stays would be determined by
the success of the blog posts. The model is
open Saturdays and Sundays, so the blogger
can reside there during the week. This could
also be a good opportunity for the builder to
get to know the blogger and for the blogger
to learn more about Granville Homes. Who
knows—maybe this experience will turn the
blogger into a potential client.
“They could stay there and we
could treat them to dinner at
some local spots and talk about
the areas and our vacation
homes,” Brunn says.
19www.techomebuilder.com
During their “vacation,” the blogger would get
to know the ins and outs of a Granville Home
and play with the technologies within, such
as the Wi-Fi enabled thermostats, garage
door opener, front door locks, alarm system,
surveillance camera and app-controlled
lighting. Granville Homes is also looking to
include a product that detects water leaks.
“We have a great tech package included for
people who want to check on their cabin
from afar,” says Brunn.
From there, the blogger writes about his or
her adventures in the area and the available
home features, and Granville Homes will
host the blog post on their site. The hope
is that the first-person account will attract
potential clients.
Not only are many bloggers Millennials, but
so are many blog readers and homebuyers.
She hopes that this idea will take off so that
she can expand this type of marketing to
other Granville Home communities that cater
to this market.
“For the younger buyer we also have a
community that has miles of trails, a golf
course, tennis courts, an Olympic-size pool,
workout facility and restaurant. If we could
find some local mommy, foodie or fitness
bloggers, then we could do the same type
of offering.”
We smell big opportunities here. While
having bloggers stay in a model home is
innovative, imagine having potential clients
test-drive a home for a week. It’s another
page homebuilders can rip out of the
automotive marketing handbook.
“This target market would
likely be geared more towards
Boomers or Millennials who
have seen early success and
are in the market for a second
home,” says Brunn.
“Everything is done on tablets
and on smart phones. It’s like
we need to hit that market now,
and nobody else in our area is
doing so.”
– Chris Hinch
Essex Homes,
South and North Carolina
20 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
Risky and messy are two words that come
to mind when high-volume builders think
about technology options. Wouldn’t it be
easier to work from a single set of specs?
Easier maybe, but it’s not your best option.
New home buyers are now demanding
the latest technologies and personalized
features to lure them away from existing
homes and rentals.
One such option, sometimes offered
standard, is home automation. It’s been
around for decades, but until recently,
many production builders have steered
clear of it because of cost and complexity.
Below we share 10 questions that could
help provide the confidence you need
to make automation a key part of your
business model and make the difference
between losing a sale and turning a profit.
High-volume builders can help themselves cash
in on the TecHome boom.
10 Questionsto Ask When Considering Home Automation
1. First off, what is home
automation?
Home automation systems are typically used
to control lighting, heating, ventilation, air
conditioning, appliances, communication
systems, entertainment and home security
devices to improve convenience, comfort,
energy efficiency and security.
Devices are connected through a home
network to allow remote access through a
personal computer, smartphone or tablet.
Home automation also refers to home control
and smart or connected home technology.
2. How has today’s TecHome
evolved beyond the electronic
house of 20 years ago?
Home automation today goes far beyond
home theater. It has transformed along with
the concept of “home,” which is not just the
building where you live but also extends to
the handheld device in your pocket. This new
level of complexity makes having a trusted
integration partner, as well as tech-savvy
subcontractors, absolutely essential.
“You have to have confidence
in the knowledge yourself to
answer questions and give
that confidence level to your
homebuyer.”
– Jakki Brunn
Kaerek Homes,
Southeastern Wisconsin
21www.techomebuilder.com
3. How do I learn more about
home automation?
While Googling “home automation” and
searching manufacturer websites can lead
to helpful (and lots of not-so-helpful)
information, a more effective and efficient
method is to seek out a reputable low-
voltage integrator in your area.
Integrators are experts in wired and wireless
technologies for the home, and they bring
the wisdom of experience from interacting
with a wide range of builder clients and
customers. Meeting with manufacturers and
integrators at events—such as our TecHome
Builder Summit—is also a worthwhile idea.
4. What has kept you from
offering home automation in
your homes before now?
In preparing for your integrator meeting, it’s
important to take stock of your knowledge
of, experiences with, assumptions about
and reasons behind any resistance to home
automation. Cost? Lack of customer interest?
Complexity?
Waiting for a single interoperable platform?
Realizing what you do and don’t already know
will lead to the best solutions for your buyers
and your business.
5. How do your customers feel
about home automation?
Before any talk of a specific technology
solution, you must have a deep sense of
both your level(s) of the market—higher,
middle and/or lower—and what your
individual customers are expecting, desiring
or considering in terms of home technology.
What is their digital lifestyle?
How many digital devices do they own, and
how much control and ease of use are they
seeking? How does age—Baby Boomer,
Gen X or Millennial—affect their approach
to technology? Addressing these questions
directly with your customers will save you
time and money.
6. Should you prewire for
wireless automation and wait
for the customer to make a
decision, or should you install a
system as a standard feature?
This is an excellent question for your
integrator. Structured wiring is the
foundation of most home automation
systems today, and it’s incredibly beneficial,
even a necessity, to have a comprehensive
plan in place before construction begins.
This satisfies your customer’s existing
technology needs as well as potential
tech expansion and upgrades in the near
future. Costs of installing and configuring
specialized wiring generally run between a
half and 1 percent of the home’s total cost.
Realizing what you do and
don’t already know will lead
to the best solutions for your
buyers and your business.
22 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
7. How much money should
you invest in automation so
that it reliably improves your
profit margin on each home
you sell?
The answer to this question can vary
widely depending on your individual
business model. In the production market,
economies of scale from installing tech
across multiple homes and developments
can be a huge advantage in terms of costs
and pricing.
Working out the calculus of right-sizing your
investment should involve conversations
with your integrator, contractor and
manufacturer partners, your customers and
their realtors, and your peers across the
production and custom building markets.
8. How will you market home
automation to your customers?
Start by educating yourself and your sales
staff about the benefits and challenges of
home automation. Bring in an integrator early
and often to meet with the customer, and
trust them to share their expertise. Customers
want to experience the technology, not just
hear or read about it, so it’s useful to install
the tech in your design showroom and
model homes, as well as making the control
app available for customers to play with on
their own smart devices.
9. How will home automation
impact your construction
process and your timeframe?
The comprehensive prewiring and
installation plan mentioned in question 6
will help you keep your project on time
and on budget—from rough-in and trim-
out, through component installation and
programming/testing, to client instruction
and follow-up.
10. Should you provide service
and support for systems once
they are installed?
Much of this—along with the attendant
warranty issues—is handled by the
integrator or manufacturer, but this is an
important topic of discussion early on with
your integration partner. Don’t simply leave
the fate of the system in the customer’s
hands without proper resources in place.
“What brought me here is
to learn more and figure
out what’s going on in the
marketplace, and after being
here, I’ve seen the benefit of
offering more.”
– Clayton Burnham
Hubble Homes, Boise, Idaho
23www.techomebuilder.com
March 21-23, 2016
Orange County Convention Center
Orlando, FL
It’s Coming...
techomeX.com
This first-of-its-kind expo will gather the entire
ecosystem of players to deliver the TecHome.
24 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
All those notions you builders have about
selling tech, throw them out the window.
And hopefully it’s one with automated shades
you convinced your client to buy.
Lennar Ventures chief marketing officer Emily
Frager says that where the industry is going,
the builder is the new salesperson.
“I think now is the time that homebuilders
need to adopt almost a retailer mentality
in terms of how we’re going to bring the
adoption of the smart home to life.”
Frager proclaimed what some are calling
a ground-breaking trend at the TecHome
Builder Summit. She says it’s become the
builder’s responsibility to make sense of the
hundreds of products and platforms out there
and to market them to the homebuyer in a
simple, compelling way.
“Ultimately, the buck is going to stop with
the builder who put these products in
the home,” she says. “And we have to be
prepared to service that. That’s where it’s
probably very overwhelming.”
But it’s also exciting. All of these home
technology options allow builders to
differentiate their new homes from existing
homes and rentals. Whether they are
affordable luxuries or energy efficiencies, the
key is for builders to focus on the lifestyle
benefits and not the individual products.
Lennar Redefines
Builders’ Role
in Implementing Tech
Experts say it’s the builder’s responsibility to find a
simple, sellable package.
“Talking about wires and
protocols and bits and parts
and pieces is not going to
work,” says Frager. “You lost
them at ‘protocol.’”
Just letting your clients know this technology
is out there and you can offer it in a base
package is the first step. Many of them
still think they have to purchase it at an
aftermarket retailer.
“Our job now is to surprise and delight them
with functionality and lifestyle features that
they could have never imagined they could
have in their $200,000 homes and then deliver
on that promise with a seamless service, which
is easier said than done,” she says.
If it’s done well, it will really be an
unbelievable win for everybody in the
TecHome marketplace.
25www.techomebuilder.com
In the final session of the TecHome Builder
Summit, AE Ventures President John Galante
announced a visionary project recognizing
both a new era of opportunity for builders
with regard to installed technologies and
their struggles to keep pace with and
maximize the benefits of technology in the
homes they build.
In Search of TecHome Master Builders,
spearheaded by AE Ventures and a group of
industry experts, will define goals for builders
to improve service to homebuyers and create
meaningful advantages for their businesses.
The project will develop recommended
practices and resources for achieving and
maintaining TecHome Master Builder status.
“Later this year, AE Ventures
will publish A Call to Industry
Action white paper that will
include a set of recommended
competencies and best practices
that homebuilding companies
and individual professionals
could pursue to fairly claim
and promote themselves as a
TecHome Master Builder or a
TecHome Master Professional,”
said Galante.
We’re Searching for
TecHome Master Builders
Is This You—or Someone You Know?
Activities and products will include
presentations at the TecHome Builder
Summit, as well as qualitative and quantitative
research conducted on builders, homebuyers,
realtors and homebuilding industry
investment analysts.
AE Ventures will also produce sales and
marketing aids for TecHome Master Builders
and Professionals such as promotional
vehicles and self-certification materials.
If you would like to join our Industry Experts
Group and help us in our mission to define
and develop the TecHome Master Builder
program, email John Galante at
jgalante@ae-ventures.com.
Industry Experts Group
•	 Jacob Atalla, KB Home
•	 Michael Bartleman, Beazer Homes
•	 Jim Crowell, e-TECH
•	 Rick Greene, Green Energy and Electric
•	 Barry Hensley, NorthStar Luxury Homes
•	 Joan Marcus-Colvin, The New Home
Company
•	 Joyce Mason, Pardee/TRI Pointe Group
•	 Curtis W. Morrison, Certified Building
Design
•	 Chad Williams, Pepper Viner Homes
26 TecHome Builder Summit 2015 Wrap Up
Trying Tech:
March 21-23, 2016 | Orange County Convention Center | Orlando, FL
November 4-6, 2015 | Omni ChampionsGate | ChampionsGate, FL
The tech strategy event for luxury builders
100+ of the nation’s most innovative luxury homebuilders, that target the top
20% of homebuyers in their markets
The tech strategy event for the broad horizon of
residential contractors
75 of the nation’s most innovative residential contractors:
The education and networking event for the entire
ecosystem of TecHome industry players
3,000 attendees from across the nation, will gather, including:
•	 electronic systems
contractors
•	 electrical contractors
•	 energy generation
contractors
•	 HVAC/IAQ contractors
•	 appliance contractors
•	 plumbing & irrigation
contractors
•	 pool & spa contractors
•	 window covering
contractors
•	 high-volume builders
•	 luxury/custom builders
•	 multifamily builders
•	 remodelers
•	 residential real estate
developers
•	 realtors
•	 electronic systems contractors
•	 electrical contractors
•	 energy generation contractors
•	 HVAC/IAQ contractors
•	 appliance contractors
•	 plumbing & irrigation
contractors
•	 pool & spa contractors
•	 monitoring & managed
services providers
•	 telecommunications service
providers
The tech strategy events for luxury and high-
volume builders, along with residential contractors
100+ of the nation’s most innovative luxury homebuilders that target the top
20% of homebuyers in their markets
100+ of the nation’s most innovative high-volume homebuilders
100+ of the nation’s most innovative residential contractors
(see above for contractor categories)
December 7-9, 2016 | Omni & Convention Center | Fort Worth, TX
Upcoming Events
Snapshot Who’s Attending
27www.techomebuilder.com
TecHome Contacts
Nancy Franco
Executive VP
nfranco@ae-ventures.com
508.618.4225
Amelia Andrade
Operations Coordinator
aandrade@ae-ventures.com
508.618.7670
Jasmine Leitzel
Director of Business
Development – TecHome
jasmine@ae-ventures.com
508.618.8329
Katie Westerduin
Guest Recruitment
kwesterduin@ae-ventures.com
508.618.7856
Arnie Wolfson
Sales Executive
arnie@ae-ventures.com
508.618.7850
Jillian Bateman-Moore
Director of Marketing & Editorial
jbateman@ae-ventures.com
508.618.7768
Casey Meserve
Writer
cmeserve@ae-ventures.com
508.433.1920
Kelly Mello
Writer
kmello@ae-ventures.com
508.433.1929
Andrea Medeiros
Editor
amedeiros@ae-ventures.com
508.433.1923
Steve Withrow
Editor-in Chief,
TecHome Contractor & TecHomeX
swithrow@ae-ventures.com
508.618.8331
John Galante
President
jgalante@ae-ventures.com
508.618.4226
Operations & Guest Relations
Sales
Editorial
always evolving.
TecHome Builder is a product of

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THB Summit 15

  • 1. WRAP UP March 23–25 | Austin, TX www.techomebuilder.com
  • 2. 2 TecHome Builder Summit 2015 Wrap Up Trying Tech: Top Plays from the 2015 Summit
  • 3. Introduction Trying Tech: Four Builders Give Their Tips Millennials Hold the Promise for the Next Building Boom Home, Sweet (Smart) Home: Rising Numbers Forecast Internet of Things Explosion Updating the Tech Approach for the Do-It-Yourself Market Faces of the Summit Selling the New American Dream Here’s a Bright Idea: Use Bloggers to Market for You! 10 Questions to Ask When Considering Home Automation Lennar Redefines Builders’ Role in Implementing Tech We’re Searching for TecHome Master Builders 4 6 8 10 12 14 16 18 20 24 25
  • 4. 4 TecHome Builder Summit 2015 Wrap Up Trying Tech:Forget the Engine That Could Be the Engine That Will The second annual TecHome Builder Summit is behind us, but builders are going full steam ahead with the relationships they fostered and education they received during Summit sessions, group presentations, one-on- one meetings and networking events. The event saw a 50 percent increase in builder guests. More than 100 decision- making executives from the nation’s top building companies attended. And more than 60 brands represented the industry’s leading technology providers. What’s even more impressive–nearly 85 percent of the builder guests agreed that they were considering switching vendors and over 80 percent strongly agreed that they’d be including more technology as standard as a result of the Summit. So what’s next? Now it’s important to keep the momentum going and get on track for what we call TecHome Master Builder status (see p. 25). Builders must target the key homebuying markets in a personalized way, take advantage of the smart home explosion, and implement the tips they gathered at this laser-focused TecHome event.
  • 5. 5www.techomebuilder.com “Technology is going to be the norm. Any new home that’s built 10 years from now, it’s going to be standard in every one. If you don’t get with the times, you’re done.” – Steven Showalter Ron Terry Construction, Northwest Montana
  • 6. 6 TecHome Builder Summit 2015 Wrap Up Trying Tech: Worth nearly $60 billion in the next five years, the smart home market is growing at light speed. It’s a key reason why high-volume builders are scrambling to tap into home tech. New research from MarketsandMarkets shows the global smart home market was valued at $20.38 billion in 2014 and is expected to reach $58.68 billion by 2020, a 17 percent growth rate over just six years. There’s a lot of money out there, but getting a piece of it is harder than you might think. High-volume builders have the burden of finding a partner and package that works for their customers’ lifestyles and price points. Their success depends on it. “It’s something that you’re going to have to do regardless of how you do it,” says Clint Skibinski of McBride and Son Homes. Trying Tech: Four Builders Give Their Tips Insider info from the TecHome Builder Summit “Whether you offer technology as a standard package, build your business around it or completely outsource it to an outside provider, it’s something that is going to be around–and more involved in the homebuilding process.” Skibinski is one of more than 100 decision- makers learning from his experiences with other builders, integrators and manufacturers at the 2015 TecHome Builder Summit. Now, he and a few other builders are offering some insider tips to others about how they plan to implement tech. Most Popular Builder Tips Most builders agree that the first thing you need to do is to find a partner and platform you can trust, educate yourself and your staff about the tech you’re selling and create a base package that includes a few options (such as a security system and lighting) that the homebuyer can add later. Following these tips will have you on the fast track to recurring revenue and give you an opportunity to tap into that $60 billion goldmine that the smart home market is poised to become.
  • 7. 7www.techomebuilder.com Clint Skibinski McBride and Son Homes, Missouri 1. Find a good partner and platform that’ll be around for a while. (He likes Clare Controls, Savant and GE) 2. Know your homebuyer. (Do they want tech offered as a standard or prewiring for later?) 3. Know your market. (If energy is cheap, don’t focus on energy-efficient technologies) Chris Hinch Essex Homes, South and North Carolina 1. Offer a base package. (High-volume customers won’t pay high prices later for options) 2. Hide the smart home cost. (Once they have it, they want more) 3. Contact customers six months later with affordable upgrades. (A $40 light switch is an easier sell than a $1,000 system) Steven Showalter Ron Terry Construction, Montana 1. Educate sales staff. (If they don’t try it, they can’t sell it) 2. Find an electrician or integrator who knows how to implement tech. 3. Prepare home with wiring so that buyers can upgrade later. Jakki Brunn Kaerek Homes, Wisconsin 1. Bundle packages together for a better price point. (Test the market beforehand) 2. Install expandable systems (Use a structured wiring package to start and go from there) 3. Think of ways to make tech sexy. (Promote lifestyle vs. pieces of technology) Insider Tips
  • 8. 8 TecHome Builder Summit 2015 Wrap Up Trying Tech: Let’s begin with some common misconceptions about the first generation who’ve lived all their lives in the Digital Age— the generation that represents the greatest opportunity for significant growth in the homebuilding marketplace since the Baby Boomers left Woodstock. Top 4 Millennial Myths Myth 1: Millennials are pessimistic by nature. Reality: They are overly optimistic. Myth 2: They’re all broke. Reality: Many have already made it into the ranks of the wealthiest households. Myth 3: They’re self-absorbed. Reality: They take great pride in self- expression and individuality but connect with causes, people and companies they respect. Myth 4: They’re frivolous spenders. Reality: Millennials are bigger deal/discount shoppers than any other generation, but brands, cause and reputation matter. These were just a few of the takeaways from a TecHome Builder Summit session on marketing to Boomers and Millennials, which featured Steven Koenig, director of industry analysis for the Consumer Electronics Association, and Tim Costello, president of Builders Digital Experience (BDX). Millennials Hold the Promise for the Next Building Boom Builders must look to technology and novel approaches to market to the digital generation. The environmentally conscious and wildly social Millennials will form 24 million new households from 2015 to 2025, according to a report from Harvard University: “Given the sheer volume of young adults coming of age, the number of households in their 30s should increase by 2.7 million over the coming decade, which should boost demand for new housing.” Whereas Boomers view technology as a helpful tool for convenience, energy savings and aging in place, Millennials view tech as mission critical. “They are more tolerant of complexity and expect obsolescence more than Boomers,” said Costello. Marketing to Millennials In a time when the new home market share lost 9 percent between 1995 and 2013—and even the biggest builders are outsold by used homes 100 to 1—successful builders must transform the customer experience using technologies and focus on innovation, convenience, capability, the environment and energy savings—all things that support the younger buyer’s digital lifestyle. “Based on the population pyramid for the United States, we will have to wait 24 years, until 2039, for Millennials to enter their peak earning and buying period at ages 46 to 50,” Costello said. “And if you’re a builder, 24 years is a long time to wait to do nothing.” What do Koenig and Costello recommend that builders should do in the meantime? They need to make buying a new home a more attractive option for young buyers’ lifestyles.
  • 9. 9www.techomebuilder.com To market more effectively, builders must improve the attractiveness of ownership by designing and building a different housing solution. To compete both with the used- home market and the higher-end rental market—where trendy locations, custom amenities, connected technologies and socializing opportunities are already paramount—builders must pay close attention to the Millennials’ desires for personalization and modern design as well as sustainable, socially responsible, maintenance-free living. Another option is providing some form of economic assistance, lowering the cost of ownership will draw Millennials away from the existing-home and rental markets. Builders can use a combination of interactive and personalization tools, ingredient branding and event marketing to keep the attention of those customers. Also, rethinking the model of the single- family home entirely is becoming an increasingly important consideration. “Millennials are often looking for smaller, single-occupant housing as well as reconfigurable housing to double-up with other buyers,” said Costello. Final myth: The future can wait. Reality: It’s already knocking at your door. 80 million Millennials (24% of U.S.) Median income: $25,000 for ages 18-27 and $48,000 for ages 28-36 21 million still live at home with parents (but this trend is changing) 23% hold a bachelor’s degree or higher 39% are still in school Average student loan debt: $33,000 21% are married, compared with 42% for Boomers at same age; 20% are same-sex couples Most racially/ethnically diverse/bilingual generation: 19% Hispanic, 14% African American and 5% Asian Take five years longer to marry and have their first child (compared to 1970) 90% prefer owning to renting 77% rely on family member input for major decisions 51% make decisions based on recommendations from company websites 40% would like to live in an urban area in the future The Rundown on Millennials in 2015 “TecHome features that are compatible with Millennials’ connected lifestyles— from home offices and charging stations to improved cell reception and automation—these are not wants but expectations for most younger buyers,” Costello said.
  • 10. 10 TecHome Builder Summit 2015 Wrap Up Trying Tech: Mobile broadband is emerging as the fastest- growing technology in human history, says a new report from the International Broadband Commission for Digital Development. “More than 2.3 billion people had access to mobile broadband by the end of 2014, and this figure will climb steeply to a predicted 7.6 billion within the next five years,” said Matthew Pine, director of marketing for Carrier, in a TecHome Builder Summit session on the Internet of Things and the Monitored and Managed Home. Home, Sweet (Smart) Home: Rising Numbers Forecast Internet of Things Explosion. Pine noted that the number of residential gateways and routers deployed by broadband service providers around the world will increase to 120 million by 2017, according to Parks Associates. Millennials, Pine said, are amplifying these trends. “When it comes to the next generation of homeowners, more than half—56 percent—of Millennials surveyed by Better Homes and Gardens believe home technology capabilities are more important than curb appeal,” Pine said.
  • 11. 11www.techomebuilder.com “Homebuilders must capitalize on the opportunity to have a lifetime relationship with the consumer,” said Pine. “Customer satisfaction means you don’t just deliver a smart home, you deliver a smart solution.” “If a home is not up-to-date with the latest tech capabilities, 64 percent of Millennials would simply not consider living there.” In addition, 84 percent of the younger Americans surveyed believe that technology is an absolute essential to have in their homes. The most sought-after technologies are an energy-efficient washer and dryer (57 percent), security system (48 percent) and smart thermostat (44 percent). “And smarter doesn’t just translate to technologies,” Pine added. “Millennials are more concerned than any other group with their environmental impact and look for ways to reduce their energy use.” As key takeaways, Pine stressed that homebuilders must build internal competency and capability in the connected home while developing a strategy to insource or outsource to reliable, long-term partners such as manufacturers and contractors.
  • 12. 12 TecHome Builder Summit 2015 Wrap Up Trying Tech: Millennials love technology and want to set it up themselves, causing builders to figure out ways to sell it as a DIY gateway. Updating the Tech Approach for the Do-It-Yourself Market Unlike Boomers who can afford high-end devices may be a little more uncomfortable with the tech components, Millennials are happy with the basics and have confidence that they can install much of it themselves. “All week I’ve been making a list of things I want to retrofit into my own house,” said Conley Black, a Millennial and new home consultant for Goodall Homes in Nashville. However, when one of his friends bought a house through Goodall, he told Black, “I was disappointed that you don’t offer any automation.” This got Black thinking about technology and led him to the TecHome Builder Summit. “If you offer technology to Millennials and if it’s priced right, they’ll buy it,” he said. “They can do it themselves; they don’t have to pay us 40 percent more. But we want to make it easier for them. You can do it later and pay $1,000 out of pocket or pay $5,000 and do it now.” Maybe it isn’t such a hard sell, but it can be intimidating for salespeople who don’t know about the latest products. Offering Millennials the opportunity to roll tech expenses into their mortgage makes the professionally installed option that much more appealing. Laurie Myers, purchasing and design manager at Nilson Homes in Northern Utah, said, “More customers are coming in asking questions about technology. And we’ve got the deer-in-the-headlights look. They want tech included in their loans; they don’t want to go aftermarket.” “I’m trying to implement the tech now so that we can keep our market position, stay on top, keep innovating and just stay ahead of the competition.” – Stephen Kromer Kromer Investments, Reno, Nevada
  • 13. 13www.techomebuilder.com Her company is considering smart garage door openers, lock systems and a smart thermostat as a standard for Millennials and then putting together packages of additional options. Clayton Burnham, another Millennial and estimating manager at Hubble Homes in Boise, Idaho, said selling technology to Millennials doesn’t have to mean offering a fully connected home. It can be as simple as including structured wiring, which can encourage Millennial DIYers to add more features during the sales process and afterward. “Making sure that whatever they have in their homes is adaptable to future needs is going to be important.” “[These] are people that are online constantly and they don’t trust anyone to do it themselves, so you can create that infrastructure in the wall and they can build upon that system how they like,” said Burnham. “All our buyers have different price points they’re trying to meet, so we have to have tiered levels of what they can do.”
  • 14. 14 TecHome Builder Summit 2015 Wrap Up Trying Tech:Faces of the Summit
  • 16. 16 TecHome Builder Summit 2015 Wrap Up Trying Tech: “We have a new American Dream; it’s not the same as it was. It’s not to own a home now; it’s to have a lifestyle. Can I provide myself with the lifestyle I want, and how best can I do that?” leadership coach Mike Moore told builders during a TecHome Builder Summit session. Homes are no longer the investment they were; they are now the focal point of a lifestyle. So how do you sell a lifestyle? Selling theNew American Dream Builders trying to recapture the customers they had before the housing boom went bust need to recognize these changes, and those who can adapt and evolve will see success. One way for builders to do that is to include technology packages in their homes so that they can differentiate themselves from the competition and market their homes as a lifestyle choice. Moore said that builders will get more interest and payback if they are more aggressive with the technology packages they include in their homes on all levels: starter homes, step-ups and aging-in-place homes. “You are no longer production builders; you are builders who build personalized homes on a schedule now. It’s the first mindset that you have to change, and if you don’t change it you’ll continue to struggle,” he said.
  • 17. 17www.techomebuilder.com He then set the audience loose to brainstorm answers to three questions for three groups of buyers: First-time, Step-ups and Final Destination buyers: In your next community what will be the technology standard and what will be the upgrade technology? How will you better prepare salespeople to use the new home technology? How will you change the sales environment? Most of the builders agreed that their offering would range from structured wiring, a connected thermostat, Wi-Fi and light controls to à la carte options for Millennials willing to pay for them, as well as larger packages such as security systems, full lighting control and an entertainment package for step-up homes and for Boomers heading into retirement. What most interested the crowd, however, were the responses on how to sell the tech packages. Some of the answers received high approval. Barbara Friedman, a project consultant for Legacy Design Build Remodeling, suggested that as well as training their sales staff to sell technology, builders should also hire Millennials to sell it. “Hire Millennials—make sure they’re trained and updated on new developments. [And] maybe give them a $500 basic system in their home. It would be the best of both worlds,” Friedman said. David Patterson of the PulteGroup said salespeople need to understand what they’re selling to be successful. Vendors should train home salespeople in how to use and sell the products. “If the salespeople don’t know how to sell it, you’re not doing yourselves any good by offering it.” Friedman’s group suggested handing Millennial customers a tablet and letting them wander through a model home. The tablet would include the needed apps, and beacons that automatically display selling features and show the buyer how to interact with the devices would be placed throughout the house.
  • 18. 18 TecHome Builder Summit 2015 Wrap Up Trying Tech: Mike Moore of Moore Leadership and Peak Performance may have some great ideas when it comes to marketing home technology and boosting sales, but one idea that had builders talking after the roundtable session came from one of their own—Michelle Brunn, vice president of sales at Granville Homes. That idea was to get bloggers to market the house for the builder. “The idea came during our brainstorming session on unique ideas to market to Millennials,” she says. “Since we know testimonials are a great way of marketing— having bloggers (mommies, foodies, vacationers and so on) stay in the models and blog about their experience seems like a unique way to penetrate this market and spread the word.” Brunn is also putting her money where her mouth is. She has reached out to several California vacation bloggers to measure their interest in staying in a model vacation home in the Sunrock at Shaver Lake community and writing about their observations on a voluntary basis. This area is known for its clean mountain air, fragrant pines and plenty of summer and winter activities. “We are the same distance between San Francisco and Lake Tahoe to San Francisco to Shaver Lake but are a third of the price because most people aren’t aware of the area,” says Brunn. Homebuilder to host vacationers in return for blog content. Here’s a Bright Idea: Use Bloggers to Market for You! Of course, guidelines would have to be put in place so that the model isn't damaged. The frequency of stays would be determined by the success of the blog posts. The model is open Saturdays and Sundays, so the blogger can reside there during the week. This could also be a good opportunity for the builder to get to know the blogger and for the blogger to learn more about Granville Homes. Who knows—maybe this experience will turn the blogger into a potential client. “They could stay there and we could treat them to dinner at some local spots and talk about the areas and our vacation homes,” Brunn says.
  • 19. 19www.techomebuilder.com During their “vacation,” the blogger would get to know the ins and outs of a Granville Home and play with the technologies within, such as the Wi-Fi enabled thermostats, garage door opener, front door locks, alarm system, surveillance camera and app-controlled lighting. Granville Homes is also looking to include a product that detects water leaks. “We have a great tech package included for people who want to check on their cabin from afar,” says Brunn. From there, the blogger writes about his or her adventures in the area and the available home features, and Granville Homes will host the blog post on their site. The hope is that the first-person account will attract potential clients. Not only are many bloggers Millennials, but so are many blog readers and homebuyers. She hopes that this idea will take off so that she can expand this type of marketing to other Granville Home communities that cater to this market. “For the younger buyer we also have a community that has miles of trails, a golf course, tennis courts, an Olympic-size pool, workout facility and restaurant. If we could find some local mommy, foodie or fitness bloggers, then we could do the same type of offering.” We smell big opportunities here. While having bloggers stay in a model home is innovative, imagine having potential clients test-drive a home for a week. It’s another page homebuilders can rip out of the automotive marketing handbook. “This target market would likely be geared more towards Boomers or Millennials who have seen early success and are in the market for a second home,” says Brunn. “Everything is done on tablets and on smart phones. It’s like we need to hit that market now, and nobody else in our area is doing so.” – Chris Hinch Essex Homes, South and North Carolina
  • 20. 20 TecHome Builder Summit 2015 Wrap Up Trying Tech: Risky and messy are two words that come to mind when high-volume builders think about technology options. Wouldn’t it be easier to work from a single set of specs? Easier maybe, but it’s not your best option. New home buyers are now demanding the latest technologies and personalized features to lure them away from existing homes and rentals. One such option, sometimes offered standard, is home automation. It’s been around for decades, but until recently, many production builders have steered clear of it because of cost and complexity. Below we share 10 questions that could help provide the confidence you need to make automation a key part of your business model and make the difference between losing a sale and turning a profit. High-volume builders can help themselves cash in on the TecHome boom. 10 Questionsto Ask When Considering Home Automation 1. First off, what is home automation? Home automation systems are typically used to control lighting, heating, ventilation, air conditioning, appliances, communication systems, entertainment and home security devices to improve convenience, comfort, energy efficiency and security. Devices are connected through a home network to allow remote access through a personal computer, smartphone or tablet. Home automation also refers to home control and smart or connected home technology. 2. How has today’s TecHome evolved beyond the electronic house of 20 years ago? Home automation today goes far beyond home theater. It has transformed along with the concept of “home,” which is not just the building where you live but also extends to the handheld device in your pocket. This new level of complexity makes having a trusted integration partner, as well as tech-savvy subcontractors, absolutely essential. “You have to have confidence in the knowledge yourself to answer questions and give that confidence level to your homebuyer.” – Jakki Brunn Kaerek Homes, Southeastern Wisconsin
  • 21. 21www.techomebuilder.com 3. How do I learn more about home automation? While Googling “home automation” and searching manufacturer websites can lead to helpful (and lots of not-so-helpful) information, a more effective and efficient method is to seek out a reputable low- voltage integrator in your area. Integrators are experts in wired and wireless technologies for the home, and they bring the wisdom of experience from interacting with a wide range of builder clients and customers. Meeting with manufacturers and integrators at events—such as our TecHome Builder Summit—is also a worthwhile idea. 4. What has kept you from offering home automation in your homes before now? In preparing for your integrator meeting, it’s important to take stock of your knowledge of, experiences with, assumptions about and reasons behind any resistance to home automation. Cost? Lack of customer interest? Complexity? Waiting for a single interoperable platform? Realizing what you do and don’t already know will lead to the best solutions for your buyers and your business. 5. How do your customers feel about home automation? Before any talk of a specific technology solution, you must have a deep sense of both your level(s) of the market—higher, middle and/or lower—and what your individual customers are expecting, desiring or considering in terms of home technology. What is their digital lifestyle? How many digital devices do they own, and how much control and ease of use are they seeking? How does age—Baby Boomer, Gen X or Millennial—affect their approach to technology? Addressing these questions directly with your customers will save you time and money. 6. Should you prewire for wireless automation and wait for the customer to make a decision, or should you install a system as a standard feature? This is an excellent question for your integrator. Structured wiring is the foundation of most home automation systems today, and it’s incredibly beneficial, even a necessity, to have a comprehensive plan in place before construction begins. This satisfies your customer’s existing technology needs as well as potential tech expansion and upgrades in the near future. Costs of installing and configuring specialized wiring generally run between a half and 1 percent of the home’s total cost. Realizing what you do and don’t already know will lead to the best solutions for your buyers and your business.
  • 22. 22 TecHome Builder Summit 2015 Wrap Up Trying Tech: 7. How much money should you invest in automation so that it reliably improves your profit margin on each home you sell? The answer to this question can vary widely depending on your individual business model. In the production market, economies of scale from installing tech across multiple homes and developments can be a huge advantage in terms of costs and pricing. Working out the calculus of right-sizing your investment should involve conversations with your integrator, contractor and manufacturer partners, your customers and their realtors, and your peers across the production and custom building markets. 8. How will you market home automation to your customers? Start by educating yourself and your sales staff about the benefits and challenges of home automation. Bring in an integrator early and often to meet with the customer, and trust them to share their expertise. Customers want to experience the technology, not just hear or read about it, so it’s useful to install the tech in your design showroom and model homes, as well as making the control app available for customers to play with on their own smart devices. 9. How will home automation impact your construction process and your timeframe? The comprehensive prewiring and installation plan mentioned in question 6 will help you keep your project on time and on budget—from rough-in and trim- out, through component installation and programming/testing, to client instruction and follow-up. 10. Should you provide service and support for systems once they are installed? Much of this—along with the attendant warranty issues—is handled by the integrator or manufacturer, but this is an important topic of discussion early on with your integration partner. Don’t simply leave the fate of the system in the customer’s hands without proper resources in place. “What brought me here is to learn more and figure out what’s going on in the marketplace, and after being here, I’ve seen the benefit of offering more.” – Clayton Burnham Hubble Homes, Boise, Idaho
  • 23. 23www.techomebuilder.com March 21-23, 2016 Orange County Convention Center Orlando, FL It’s Coming... techomeX.com This first-of-its-kind expo will gather the entire ecosystem of players to deliver the TecHome.
  • 24. 24 TecHome Builder Summit 2015 Wrap Up Trying Tech: All those notions you builders have about selling tech, throw them out the window. And hopefully it’s one with automated shades you convinced your client to buy. Lennar Ventures chief marketing officer Emily Frager says that where the industry is going, the builder is the new salesperson. “I think now is the time that homebuilders need to adopt almost a retailer mentality in terms of how we’re going to bring the adoption of the smart home to life.” Frager proclaimed what some are calling a ground-breaking trend at the TecHome Builder Summit. She says it’s become the builder’s responsibility to make sense of the hundreds of products and platforms out there and to market them to the homebuyer in a simple, compelling way. “Ultimately, the buck is going to stop with the builder who put these products in the home,” she says. “And we have to be prepared to service that. That’s where it’s probably very overwhelming.” But it’s also exciting. All of these home technology options allow builders to differentiate their new homes from existing homes and rentals. Whether they are affordable luxuries or energy efficiencies, the key is for builders to focus on the lifestyle benefits and not the individual products. Lennar Redefines Builders’ Role in Implementing Tech Experts say it’s the builder’s responsibility to find a simple, sellable package. “Talking about wires and protocols and bits and parts and pieces is not going to work,” says Frager. “You lost them at ‘protocol.’” Just letting your clients know this technology is out there and you can offer it in a base package is the first step. Many of them still think they have to purchase it at an aftermarket retailer. “Our job now is to surprise and delight them with functionality and lifestyle features that they could have never imagined they could have in their $200,000 homes and then deliver on that promise with a seamless service, which is easier said than done,” she says. If it’s done well, it will really be an unbelievable win for everybody in the TecHome marketplace.
  • 25. 25www.techomebuilder.com In the final session of the TecHome Builder Summit, AE Ventures President John Galante announced a visionary project recognizing both a new era of opportunity for builders with regard to installed technologies and their struggles to keep pace with and maximize the benefits of technology in the homes they build. In Search of TecHome Master Builders, spearheaded by AE Ventures and a group of industry experts, will define goals for builders to improve service to homebuyers and create meaningful advantages for their businesses. The project will develop recommended practices and resources for achieving and maintaining TecHome Master Builder status. “Later this year, AE Ventures will publish A Call to Industry Action white paper that will include a set of recommended competencies and best practices that homebuilding companies and individual professionals could pursue to fairly claim and promote themselves as a TecHome Master Builder or a TecHome Master Professional,” said Galante. We’re Searching for TecHome Master Builders Is This You—or Someone You Know? Activities and products will include presentations at the TecHome Builder Summit, as well as qualitative and quantitative research conducted on builders, homebuyers, realtors and homebuilding industry investment analysts. AE Ventures will also produce sales and marketing aids for TecHome Master Builders and Professionals such as promotional vehicles and self-certification materials. If you would like to join our Industry Experts Group and help us in our mission to define and develop the TecHome Master Builder program, email John Galante at jgalante@ae-ventures.com. Industry Experts Group • Jacob Atalla, KB Home • Michael Bartleman, Beazer Homes • Jim Crowell, e-TECH • Rick Greene, Green Energy and Electric • Barry Hensley, NorthStar Luxury Homes • Joan Marcus-Colvin, The New Home Company • Joyce Mason, Pardee/TRI Pointe Group • Curtis W. Morrison, Certified Building Design • Chad Williams, Pepper Viner Homes
  • 26. 26 TecHome Builder Summit 2015 Wrap Up Trying Tech: March 21-23, 2016 | Orange County Convention Center | Orlando, FL November 4-6, 2015 | Omni ChampionsGate | ChampionsGate, FL The tech strategy event for luxury builders 100+ of the nation’s most innovative luxury homebuilders, that target the top 20% of homebuyers in their markets The tech strategy event for the broad horizon of residential contractors 75 of the nation’s most innovative residential contractors: The education and networking event for the entire ecosystem of TecHome industry players 3,000 attendees from across the nation, will gather, including: • electronic systems contractors • electrical contractors • energy generation contractors • HVAC/IAQ contractors • appliance contractors • plumbing & irrigation contractors • pool & spa contractors • window covering contractors • high-volume builders • luxury/custom builders • multifamily builders • remodelers • residential real estate developers • realtors • electronic systems contractors • electrical contractors • energy generation contractors • HVAC/IAQ contractors • appliance contractors • plumbing & irrigation contractors • pool & spa contractors • monitoring & managed services providers • telecommunications service providers The tech strategy events for luxury and high- volume builders, along with residential contractors 100+ of the nation’s most innovative luxury homebuilders that target the top 20% of homebuyers in their markets 100+ of the nation’s most innovative high-volume homebuilders 100+ of the nation’s most innovative residential contractors (see above for contractor categories) December 7-9, 2016 | Omni & Convention Center | Fort Worth, TX Upcoming Events Snapshot Who’s Attending
  • 27. 27www.techomebuilder.com TecHome Contacts Nancy Franco Executive VP nfranco@ae-ventures.com 508.618.4225 Amelia Andrade Operations Coordinator aandrade@ae-ventures.com 508.618.7670 Jasmine Leitzel Director of Business Development – TecHome jasmine@ae-ventures.com 508.618.8329 Katie Westerduin Guest Recruitment kwesterduin@ae-ventures.com 508.618.7856 Arnie Wolfson Sales Executive arnie@ae-ventures.com 508.618.7850 Jillian Bateman-Moore Director of Marketing & Editorial jbateman@ae-ventures.com 508.618.7768 Casey Meserve Writer cmeserve@ae-ventures.com 508.433.1920 Kelly Mello Writer kmello@ae-ventures.com 508.433.1929 Andrea Medeiros Editor amedeiros@ae-ventures.com 508.433.1923 Steve Withrow Editor-in Chief, TecHome Contractor & TecHomeX swithrow@ae-ventures.com 508.618.8331 John Galante President jgalante@ae-ventures.com 508.618.4226 Operations & Guest Relations Sales Editorial