Remember when we had to race to the bank before it closed so we could withdraw some spending money? Remember when we used to have to get up and walk across the room to the TV set to change the channel? Remember when your bookshelves sagged from the set of encyclopedias you kept on hand as reference?

I do. And I am glad that those days are long gone now that we have ATMs, television remote controls and the Internet.

With some of the strong data recently presented by some of the leading automation options software companies, evidence is building that automated options selection might be the ATM of the homebuilding business. In the not-too-distant future, the long hours in the design center might be a forgotten memory for builders.

The latest data from two software providers—Builder Homesite and Options Online—regarding automated options selections is impressive.

• Option margins are hovering between 40 percent and 60 percent.
• Big production builders are averaging 10 percent increases in amenity sales using online software.
• Medium-to small-sized builders are averaging 22 percent to 28 percent increases in amenity sales with automated systems.
• On average, builders have cut their cycle time from “contract” to “final selections” by two weeks.
• The average design center appointment time has been reduced by 70 percent.
• The average builder is saving $200 by replacing “paper” warranty documents at “close.”

Does this mean the design center itself is going the way of the do do bird? I don’t think so. Even large national production builders catering to the entry-level market do not foresee a day when their buyers will purchase homes without at least visiting the neighborhood, checking out a model home or going into a design center. I can’t imagine most homebuyers would be comfortable making 100 percent of their decisions online, especially when it comes to decisions on carpeting plush, paint color or even tile shade. But, especially as more virtual touring and virtual image-based options-selection software are incorporated into builders’ automated options systems, it could happen. Indeed, a few years ago an executive from Beazer Homes told me that the company had made a complete “electronic sale.” Everything from loan application and qualification to complete amenity selection was done without ever speaking to the buyer. I don’t know if the buyer had actually visited the community. But automated options software is a valuable adjunct to your design center … not a replacement.

Check out our article on “5 Ways to Boost Design Center Efficiency” starting on page 34. We look at how technology, from software to big screen TVs, is helping builders in the design center. In this time when you need to eliminate every cancellation and boost margin, what are you waiting for? Share your automated options story with me.