Step 0 - Before starting you have to go to settings, and find “Security” -> “Unknown Sources” and check that box to allow installation of apps from unknown sources.
Step 1 - Download, unzip and place these 3 files on your phone. Then install in this order:
1 - PrebuiltGmsCore.apk
2 - Velvet.apk
3 - GoogleHome.apk
You can then run the new "Launcher" from your apps and set it as default when prompted to do so.
http://www.androidpolice.com/2013/10/31/apk-download-hangouts-1-3-support-sms-animated-gifs-location-sharing/
I for one am enjoying this new Google experience.