For homebuilders, managing the complexities of building new homes is challenging due to data silos, regulations and regional or localized strategies. Selecting, building and delivering a profitable community in the competitive homebuilder market requires a thoughtful strategy, meticulous planning and calculated execution.
Deal management software has unlocked a vital competitive advantage for homebuilders in today’s digital universe. To manage risk and seize opportunities, homebuilders must be equipped to collaborate and make decisions in real time.
In this blog post, we’ll outline how deal management software supports homebuilders at every stage in the community development lifecycle by building operational efficiencies and enhancing data-driven precision.
Manage the Community Development Lifecycle in One Platform
As projects enter new phases and change hands, the sheer volume of data and information to consider is overwhelming. Your firm needs an easy way to capture and memorialize information.
Managing the complete process, from the moment you identify a potential site in the market to delivery, creates a hub for institutional knowledge. Consequently, your firm can rely on one source of truth to prioritize tasks and view the latest updates and track critical dates like the end of due diligence, PSA execution, target close date, actual close date, non-refundable dates and many more.
Capture Potential Sites for Land Acquisition Across Target Markets
If new opportunities for homebuilding communities are still in spreadsheet silos, then there’s a better way.
Deal management software acts as a repository for potential sites as you scour target markets. Adding each site you find creates an actionable proprietary database, supporting smarter, data-driven decisions and memorializing critical details. At any point in the future, your firm can surface every site you’ve historically considered in seconds, helping you to revisit past opportunities and act on market intelligence.
Streamline Processes in Lot Investment Committee Meetings
Capturing every potential site in one place yields decisive efficiencies when it comes time to pitch opportunities to stakeholders and receive approval.
As you prioritize opportunities in lot investment committee meetings, your team can seamlessly point to data-driven evidence to support these decisions. Comparing apples to apples based on the unit count, gross margins, lot types and more eliminates the need to circle back.
Instead, your team can present empirical evidence to support your thesis and drive real-time decision making. After making a decision, memorialize the details in Dealpath.
Simplify Feasibility Analyses
Projecting returns to ensure the deal pencils can be challenging when financials are siloed.
As your firm sources and aggregates this financial data, updated figures can be stored in a source of truth your entire team can trust. When it comes time to pull data like construction costs, community costs, insurance and other data for feasibility analyses, there are no doubts about accuracy. Centralizing historical data in a proprietary deal database also helps teams gain broader market context and enhance precision with relevant comparables.
When your feasibility analysis yields questionable results, deepen your analysis by comparing underwriting model scenarios. Teams rely on Dealpath’s underwriting model comparison tool to understand how return profiles change as market conditions might evolve based on various financial scenarios. With this lens as part of your evaluation, you can ensure the deal will pencil out even in the event of, say, a mild decline in job creation.
Never Drop Another Ball During Due Diligence
Regional investment strategies complicate firmwide operating procedures across disparate business units, but there are ways to enforce cohesion and rigor.
Once a deal reaches diligence, checking every box must become a top priority. Automating, managing and tracking standardized, role-based workflows in deal management software creates accountability, preventing homebuilders from missing deadlines. With all your deals tracked in one place, you can better manage risk and always track ahead of targets.
Track Entitlement Requests Across Regions
Before a single shovel hits the ground, each community site must receive the correct entitlement. Unfortunately, though, siloed communication with local governments makes this challenging to manage.
That’s why Dealpath’s centralized repository simplifies how teams memorialize property details and files. After a deal closes, teams can track information like which sites have received entitlements, have been declined, and other details. Standardizing these requests creates a seamless, scalable process, eliminating logistical nightmares.
Creating Transparency From Site Selection to Delivery
Between prospecting for new opportunities and selling the first home, your entire organization needs seamless visibility into deal progress. The traditional method of working–emails and spreadsheets–won’t suffice in an increasingly competitive marketplace.
Centralizing all of this information in Dealpath’s deal management platform offers your firm the transparency modern organizations need for efficient, data-driven scalability. For example, after hearing about a lucrative deal, senior management may be eager to check in on entitlement progress. Or, once a deal closes, accounting teams might be interested in verifying details like the address, purchase price, and more.
Whether you’re looking to verify details in the midst of the deal or more easily share information with downstream teams, deal management software acts as the centralized hub your team needs to collaborate in lockstep.
Boost Speed to Market With Deal Management Software
From comprehensive visibility at every stage to enhancing data-driven investment decisions, deal management software modernizes the homebuilding lifecycle. To learn more about how homebuilders and developers simplify, standardize and scale project management, download our eBook.
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