RealTorch / Field Guide / Administration and Selections
12 / 15 The 15 Functions of a Homebuilding Company
Administration and Selections for Home Builders
Administration keeps the company's record current.
“The process of choosing the finishes, fixtures, and colors of a home is both an administrative burden and a financial opportunity.”
At a glance.
- What this function decides
- Administration keeps the current decision record. It tracks each choice from consideration through approval, ordering, installation, and final review. It also owns the change record and the deadlines that protect later work.
- What you need to know
- The team needs the current plans, signed selections, option catalog, and prices with effective dates. It also needs rules about which options fit each plan, current vendor availability, lead times, change orders, purchase records, schedules, buyer messages, and confirmation from the field.
- What good work produces
- One current record showing what the buyer is considering, what they selected, what the company approved and ordered, what changed, what reached the field, and what was installed.
A worked example.
The team tests a simpler way to present 43 options. Every current choice remains available during the 60-day test.
Atlas
Our average selection cycle is six weeks and buyers say the catalog is overwhelming. Review which options buyers chose and which options they could have chosen in each plan. Include appointment time, late changes, rework, plan compatibility, current catalog dates, vendor status, and option margin. Recommend a simpler process that protects useful choice and margin. Show which options buyers should see first, which stay available by request, and how we should test the new path before retiring anything.
Tools and sources used
File Retrieval5+
Atlas reviewed option sales, margin, buyer decisions, plan fit, lead time, and the current catalog.
- Used
- The review used five company files that cover 62 homes and 91 design appointments.
- Did
- Atlas connected each buyer choice with the time required, later changes, and field rework.
- Supports
- The records explain why each option appears first, later, by request, or in the retirement test.
Builder Knowledge Lookup+
Atlas used the builder methods for current records, guided choices, plan fit, installed prices, deadlines, and changes.
- Used
- The review used the Administration and Selections guide, along with the related Product Development and Purchasing guides.
- Did
- Atlas used the option history to design a clear order for presenting choices. It also stated what the rest of the company needs to record after a decision.
- Supports
- The method supports the three starting palettes, the additional choices, the by-request choices, and the retirement test.
Running Analysis+
Atlas compared option margin, buyer choices, decision time, late changes, and rework across plans.
- Used
- The analysis used the complete option, appointment, change, rework, plan-fit, and lead-time records.
- Did
- Atlas calculated how much sales and margin each option produced. It also found options that buyers chose together and measured timing, late changes, and field rework. It then generated the workbook and test plan.
- Supports
- Which options belong up front, need special rules, or should enter the 60-day retirement test.
Saving File2+
Atlas saved the option strategy and the 60-day test plan.
- Used
- The saved files are the Selections Shelf Strategy workbook and the Curated Selections Pilot PDF.
- Did
- Atlas saved the reason for each option placement, the three palettes, the measures for the test, the review owners, and the final decision rules.
- Supports
- The files let Design, Purchasing, Construction, and Sales approve the test and judge whether the new process works better.
Show nine options first. Keep the other 34 choices available while the team tests the new process.
Across 62 closed homes and 91 design appointments, nine options generate 71% of option revenue and 78% of option margin in the homes where buyers could choose them. They also fit the main plans. Use those nine options as the starting point for three coordinated palettes. Keep 14 profitable additional choices visible after the palettes. Make 12 plan-specific or long-lead choices available by request, with the deadline shown beside each one. Test eight low-use options for retirement. During the 60-day test, compare the new process with the current catalog. Measure how long decisions take, the option gross margin, late changes, buyer confidence, and field rework. Design, Purchasing, Construction, Sales, and leadership will use those results to decide which choices remain, move, or retire.
| How the option is offered | Options | Why it is here | What the buyer sees |
|---|---|---|---|
| Shown first | 9 | Buyers choose them often. They produce strong margin and fit the main plans. | Use them to build three starting palettes. |
| Shown after the palettes | 14 | They add useful variety and produce a profit. | Keep them visible as individual choices. |
| Available by request | 12 | They fit only certain plans or require more lead time. | Show the fit rules and final decision date. |
| Test for retirement | 8 | Few buyers choose them, and they may add late changes or rework. | Remove them from the first view during the test. |
| Complete catalog | 43 | Every current choice stays available during the test | Review after 60 days |
- 1Run both paths for 60 daysOffer the curated path first while keeping the complete catalog available on request.
- 2Measure what happensTrack decision days, appointment hours, option gross margin, late changes, rework, and buyer confidence.
- 3Review every proposed changeDesign, Purchasing, Construction, and Sales review the results before the company keeps, changes, or retires an option.