Posts tagged: marketing in real estate

One of the things that I think most people in the marketing world take for granted is that everybody understands the fundamental role of marketing in business. Through my daily interactions with other business owners over the past several years, however, I have been amazed at the relative lack of understanding about the importance of marketing. More often than not, marketing is a back seat, tertiary thought that comes after their product/service and daily operations, if it’s even that high of a priority.

One of the phrases that my business partner, James Orr, has coined in the real estate investing realm is that “everything starts with motivated sellers.” Without motivated sellers, there are no properties to buy, rentals to put tenants in, fixer uppers to flip, or deals to wholesale. This is such an important aspect of real estate investing that it’s almost a mantra for the way that James and scores of other successful real estate investors run their businesses. The key to getting in touch with motivated sellers happens to be marketing.

I guess that a good place to start in this discussion is to define what marketing is. Google define tells us that marketing is “the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to satisfy customers.” Marketing really does consist of more than what most people think it does. Marketing is more than just the activities that drive sales. Rather, marketing encompasses all the activities that seek to identify what consumers want and how to promote and deliver those goods and services.

Before an individual or company ever even makes the decision to produce a particular product or service, they should first spend the time to determine if there’s even a market for that offering. If there is a demand, they then need to figure out how to get that offering to the consumers that want it, how to tell consumers that it’s available, and how to price it such that there is money left over for a profit. This is all part of the marketing process, and really should occur before the product itself is even produced.

In more common usage of the term, “marketing” is often seen as only the promotional aspect of a product or service that is already available. This part of marketing consists of making the consumer aware of what you’re offering, and convincing them to buy it. There is a tendency in corporate environments to separate the marketing and sales functions into disparate departments, which is often a mistake. The purpose of the promotional element of marketing is to drive sales, and therefore the two functions are intricately connected. A good example of the disconnect between these two departments is when companies that sell capital equipment have vastly more people in their marketing departments than they do in their field sales force. Another example is when marketing and product development folks ignore the input from the field sales personnel. This input is often derived from actual customer contact, which most employees of large organizations don’t experience.

The prime purpose of one of my blogs is to test marketing promotions using a vast array of messages, media, and markets, which are often referred to as the three M’s of marketing. Before we conduct a test, we first do some background research to determine if there is even a market for what we’re considering selling, and we analyze whether or not we can at least break even on the marketing test using certain realistic assumptions about sales ratios. Pricing strategy is also something we discuss a lot before launching a new test. The actual development of sales copy, writing and placing ads, setting up measurement systems, etc., comes later in the process. Making sales and tracking metrics, then tweaking the marketing, comes next.

Sadly, many business owners don’t understand the importance of marketing. Because of this, they fail to plan for rough spots in the business cycle, such as off seasons, economic downturns, and other events. As the cliche goes, “failing to plan is planning to fail.” Every business should have a marketing plan of some sort, and it should be in writing. Companies that don’t “do” marketing will invariably fail.

In short, without marketing there are no sales. And without sales, there is no revenue. And without revenue, any business will quickly succumb to the statistics that show that nearly 2/3 of all businesses fail within their first 4 years.

Many factors affect the price, a specific house, might garner, if offered, for sale, on the real estate market. While there are both, emotional, as well as logical considerations, involved, four specific factors, generally, are the key components, which make the biggest differences, in what price, a specific home, might get, and offers, which will be presented. While there are always, competitive factors, especially how a specific property, compares, to others, for sale, in the local area, after more than a decade, as a Real Estate Licensed Salesperson, in the State of New York. I have come to believe, 4 specific factors, are most significant and relevant. With that in mind, this article will attempt to briefly consider, review, and discuss, these considerations, and why it’s important to proceed, with objectivity, and a realistic approach.

1. Overall economy, and consumer confidence: Obviously, the stronger the overall economy, and the more consumer confidence, as well belief, in a strong, sustainable employment/ job market, the more, people, might be ready, willing, and able, to pay, for a new home, of their own! Perceptions are often, far more essential, and relevant, than any other single factor/ factors!

2. Interest Rates and Real estate taxes: Overall interest rates, are the key, to mortgage rates, and obviously, the lower these rates, the lower, the monthly costs, for the homeowner. Even a somewhat minor, change in the rate, often, makes a significant difference, in the monthly expenses. In this mindset, one must consider, real estate taxes, also, because, they factor into, the overall costs, of home ownership, maintenance, etc.

3. Supply and demand: Real estate markets might be considered, Buyers Markets, Sellers Markets, and/ or neutral ones! When there are more buyers than houses on the market/ sellers, it’s a Sellers Market. When there are more sellers than those qualified buyers, looking, it becomes a Buyers Market, and when it’s somewhere, more balanced/ in – between, it’s a neutral one. Obviously, in most cases, the highest prices, occur in Sellers Markets, based on the economic concept of Supply and Demand!

4. Local market: Much of real estate, is local, in nature! Is your local area, in – demand? What are the strengths, and weaknesses? How does your area, neighborhood, location, etc, compare to other areas. Factors to consider include: safety; schools; convenience to transportation, shopping, entertainment; real estate taxes; etc.

The better one understands the actual value, as opposed to what, he wishes for, the more prepared, he will be, for the home buying, process. Will you commit to the tasks, discipline, etc?

People normally have varied tastes and lifestyles. Their way of life is usually dependent on the ideologies and principles that they uphold, thus controlling their choices on different areas. Animal-rights advocates adopt a vegetarian way of life, shunning all types of meat in their diets and living off of fruits and vegetables. Naturists or nudists choose to live their philosophies through their practices and even in the homes they live in.

Real estate caters to all sorts of niches. For most experts, the market is divided across various demographics and social beliefs and the challenge is to establish an area of real estate that will sufficiently offer the needs and requirements of each market group. Nudists are just one of the many niches that the real estate industry seeks to satisfy.

Tapping the nudist market

So far, the industry has been somewhat successful in tapping the nudist market by providing quality dwellings that are both conducive to their philosophy and favorable to other types of people who may have opposing beliefs. Originally, the practice of wearing nothing but skin in public places such as resorts, vacation homes and the like has been considered taboo but these days; people have started accepting the idea as a sound ideology. Given the rising popularity of the nudist thought, it comes as no surprise that real estate has provided a host of possibilities for naturists in terms of quality homes and dwellings.

Niche market real estate

How does one tap potential buyers for nudist real estate? The best way to start is by posting announcements and ads with various related organizations. Within their social circles, listings on appropriate houses on sale are being passed around for those who may be interested in relocating to another state such as Florida. These ads are pretty exclusive to nudist consumers but just as any other home sale, there really is no way to tell if the properties being offered are located in prime areas.

Those who chose to specialize in this specific niche market will find their hands full. Challenges include a better understanding of this type of lifestyle as well as the ability to develop areas that will welcome a radically different way of living without alienating the group from the rest of society. Clothing optional areas or locations that uphold the nudist way of thinking can only be found in select areas but that is not to say that they should be concentrated within those locations. Providing more opportunities for this group is just as important as respecting other social groups.

With the increasing popularity of naturism or nudism, real estate agents are now capable of finding a specific market niche for specialized properties. The only challenge is in how to market these homes to attract more potential buyers in a given location.

Ref: Homes and condos for sale in Nudist Resort [http://idx.diversesolutions.com/search/460/34/#Cities=%25caliente%25&Communities=%25caliente%25&Tracts=%25caliente%25&PropertyTypes=215%2C216%2C217%2C218&PerformSearch] [ad_2]
Source by Julia Vakulenko

I’ve done it myself; taken what I thought were great listing pictures and used them for my online MLS listing. My clients thought they were fine and I thought they were just fine, until I started working as a buyer’s agent in Seattle a few years back.

I worked with over 40 different buyers a week and everyday I’d hear, “Did you see those listing pictures? There’s no way we want to see that house, it’s a dump! Does the listing agent know how bad they are?” Obviously, the listing agent didn’t spend anything on real estate photography.

My buyers would also see some great listing photos and want to get in to see the home that afternoon. We’d step inside and they’d wonder if it was the same home they saw online. They felt cheated because the pictures were nothing like the real home. (but at least the listing agent got buyers walking through the house).

It all came down to the listing pictures they saw online. That’s essential marketing for listings! Give buyers a great picture and they’ll jump inside the house that day. Give them a “do-it-yourself” picture and they’ll move onto the next home. The listing pictures make the difference, especially when you spend a few bucks on professional real estate photography!

Even when the listing pictures were better than the actual house, guess what? It still got the buyers inside! That’s your goal as a listing agent; get as many showings as possible. Professional real estate photography makes that happen.

With upwards of 80%+ of buyers looking online now, the listing photos are the first thing they’re looking at and basing their initial impressions on.

How much money in lost commissions do you think you’re missing because you won’t spend a couple hundred bucks for professional real estate photography?

If you did spend the well invested marketing dollars on some professional real estate photography…….

1. You could have more satisfied clients because the home sold faster.
2. You could have made more cash because you didn’t have to drop the sales price when the listing became stale on the market.
3. You could look like a top producer in the area because of the quicker sales, better looking listings and more satisfied clients. Your overall image is enhanced, big time!

Isn’t it funny how such a small aspect of your business can affect the whole thing? Anytime you realize how one issue affects your net profits, that’ll make you perk up, right?

Now don’t give me the excuse that it’s too expensive because it’s not. Look at it as a marketing and advertising expense because that’s exactly what it is. And real estate photography is one of the best things you can spend your marketing dollars on.

You have a couple options……..

You could grab a professional in real estate photography in your local area and offer them $50-$200 to come to your listing and take some fabulous photos. Make sure they’re top notch, have all the right equipment and understand the goal of these photos. You don’t want to pay for real estate photography that’s no better than your own.

Your other option is to go with a company like Vicaso.com who does real estate photography exclusively. Their business is listing photos for real estate agents!

You can schedule your photo shoot on their website, pay about $200 or so and get the most captivating listing photos you’ll ever see. Even if you have a crack house listed for sale, their real estate photography will make it look like a palace.

I’m telling you; don’t skimp on your real estate photography. Look at the cost as an investment. If you spent $200 on professional real estate photography and got back another $20,000 in commissions that year from faster sales, more clients, and higher listing prices, wouldn’t that be worth it? You betcha!

The real estate market is the economic sector that involves the buying and selling of infrastructure such as buildings either for residential purposes, business premises, and the industry segment. Like any business sector it is susceptible to the economic forces of supply and demand. The main people involved in this field include the owner, renter, developers, renovators, and the facilitators.

This sector has a number of characteristics that are specific to it. Real estate is durable since the buildings can last for many years while the land it stands on is indestructible. As a result the supply is composed of a large share of already pre-existing stock and a tiny percentage of new development. Thus the stock varies in price only according the deterioration, renovation, and the new development coming up.

Stock in this sector could be referred as heterogeneous since every piece is unique. All buildings are different in terms of the location they are situated in, their structure and design as well as how they are financed. Change in this field takes quite a long time. This is as a result of the long duration involved in financing and construction of new property.

The real estate has the very unique feature in terms of the buyers in this market. The property can be purchased either as an investment with the expectation of earning returns or as a consumption good with the thought of using it. Individuals could also invest in the market for both reasons whereby they use the property for a while before selling it at a profit. As a direct result of its dual nature, there is a high demand since individuals tend to over-invest in this sector.

Immobility is yet another characteristic unique to this sector. The properties as well as the land it lies on are both immobile. As a result there is no physical market place meaning one has to go to where the property is situated. Therefore this issue makes location a prime factor before investment.

The main factor in demand for property is demographic, that is the population size and growth. The demographic composition plays a huge role in determining the demand and as a result the price. The performance of the economy also affects the performance of the sector since it plays a role in the ability of investors to take loans and mortgages for financing their business ventures. Naturally, the pricing determines the level of demand in the sector.

There are a number of ways to finance investment in the real estate market from government and commercial institutions. Financial aid can be obtained from commercial banks, savings banks, mortgage brokers, life insurance companies and other financial institutions. However, the best practice still remains getting funding from your own savings.

In view of the recent real estate market crash it is best to follow some guidelines. As a buyer ensure that the price you pay for the property matters a lot as well as the ability to dispose of the purchase later down the road. If not it is advisable to downsize your mortgage to be on the safe side. As a seller, identify when it is the right time to put your property on the market in order to avoid low offers.

The scenery is better and the gentle breezes coming off the ocean are second to none, but trying to sell real estate in the Bahamas can be just as challenging as other parts of the world when the real estate market is in a slump.

During these slumps, researching to find a qualified Realtor and taking special steps to market your real estate effectively can mean the difference between property that sells at a fair price in short order, and real estate that languishes on the market, said Rachel Pinder, Principal Broker of Island Living Real Estate in Nassau.

Brenda Knowles, a broker with Island Living Real Estate, suggests property owners ask a potential Realtor these questions when considering the best person for the job:

o How are you going to market the property?

o What is the history of your company?

o What is the background/Realtor experience of your agents?

o How long have they been in the business?

o What is the current market trend?

o Do you co-broke with other real estate agencies?

o What changes do I need to make to my property to make it competitive in the current market?

In short, sellers should find out how the Realtor intends to market their property, Knowles said. There are several marketing standards most Realtors employ when listing properties, so getting to the options that set one Realtor apart from all the others is paramount.

It is important to remember that the best marketing plan can only do so much; an owner should take the advice of their real estate agent to make their property look its best, Pinder said.

“It seems to go against common sense to put money into a home you’re trying to sell, but as many TV shows on the subject prove, you really can get a better price for your home by putting a little bit of money into making it appealing to a broad spectrum of potential home buyers,” she said.

Here are some easy and relatively inexpensive tips:

o Make sure the house is freshly painted in neutral colors.

o Remove personal items, such as family photos.

o Make minor repairs- patch holes in walls, fix cracked tiles, replace cracked windows, etc.

o Get rid of clutter, inside and outside

o Clean, clean, clean

o Give your front entrance curb appeal by adding colorful flowers.

Another tip to remember is to price the property right.

“Don’t try to over-price your home in a down market,” Pinder said. “It won’t sell.”

© 2007 Sinai Marketing and Island Living Real Estate. Authorization to post is granted, with the stipulation that Sinai Marketing is credited as sole source. Linking to other sites from this article is strictly prohibited, with the exception of herein imbedded links.

How do you currently generate real estate leads? Do you farm neighborhoods, publish a newsletter, have a lead generating realtor web site? Well, no matter how you get them I’m willing to wager two things;

1. They’re not so easy to get, and

2. You can always use more

While you struggle with trying to fill your leads pipeline, you can probably think of at least one agent who makes prospecting for leads seem like child’s play. But what is it exactly that they do so efficiently that you are not?

Of course the answer depends on lots of things, but let’s draw some ideas from an agent I know who worked with a builder of kiddie condos who did quite well at it.

Let’s call her Evette, which is not her real name, but it allows me to personalize the story in a way that you’ll be able to relate to.

Evette was a spark plug dynamo; full of energy, self driven and highly successful at what she did. And what she did best was market and sell lots of student housing units- mostly condos from what I could tell.

Hers was a 5 step process

1. She’d find raw land for her builder developer to purchase and develop

2. Try to set up partnerships with the seller of the raw land and her developer to offset the developers out of pocket costs while gaining controlling interest of the land

3. Would then list for sale all of the units the developer built as a result of the partnership

4. Then be positioned to resell the units when the students gradutaed from college and moved out of the area and

5. In some instances would be positioned to also get referrals to out of town agents for the relocating students.

As you can see, Evette had it going on. So, when I say meeting and working with Evette was a career changing experience you’ll know what I mean.

My attitude was the first thing that changed. I got over being paralyzed with awe by doctors, lawyers, judges, dentists and other high income earning professionals.

Initially, I felt inadequate when it came to marketing real estate to them. I just didn’t think I knew enough about real estate in general to come off as a competent professional.

But you know what? It turned out I knew more than all of them, and more than I needed to know to help them with their real estate needs.

I went on to find doctors, dentists, college professors, judges, insurance agents and garden variety investors to work with and had some mutually beneficial relationships for many years.

So, what does this mean for you? Actually, there are several things to take from this article.

If you’re not marketing to people with money you should. Some agents self sabotage by not aggressively pursuing leads with the financial wherewithal to buy real estate.

Instead, they market to folk who can barely qualify for mortgage loans and/or who have related and other difficulties to overcome before they can qualify at all.

Don’t let that be you – anymore.

Another thing to learn from this article is that one lead can multiply into 3 to 4 different income generating opportunities.

So, no matter how insignificant a client might appear to be treat them all equally well.

You never know when they might refer a friend or acquaintance to you, or ask you to help them purchase some investment properties, or seek you out to help them sell the first property you sold to them and help them buy another one.

It’s a well worn cliche’, but it’s true; there’s no shortage of real estate leads for agents. You just have to know how to spot them.

Generation of real estate leads has gone digital. With different lead generation tools and some mobile marketing apps, you might feel overwhelmed. So, how can you decide which tools to add to your strategy on lead generation to attract or nurture potential prospects?

Concentrate your core strategy on the basics to real estate marketing. Methods that are tried and true are ageless and should still part of your plan even if they are dressed up for the digital consumers.

Video

It’s absolutely worth investing in high quality professional videos to showcase yourself as a real estate agent. Buying a house is often the biggest purchase an individual will make in her or his lifetime and he or she likes to work with the one who has traits they trust like personality and authenticity. They’re also looking to see if you’re the agent they like to work with, so make sure to put your best face forward. Some agents create YouTube videos to show expertise and knowledge blended with their relatable and honest style. Videos may humanize an individual much more than the static site profile. Numerous realtors showcase the area’s beauty they specialize in on videos. Videos also bring a high ROI and have proven to be important marketing technique to generate leads.

Client Testimonials

You cannot beat a passionate, heartfelt statement from satisfied clients. Reviews and testimonials must definitely be part of your presence online. Video testimonials are a perfect so some potential sellers and buyers can resonate with that individual. If you do not have video capability, there are lots of ways to show your happy customers. Make a page on your social media or website to share testimonials and share them to bigger sites as well. Sellers and buyers will appreciate the customer’s honesty and have high probability to reach out.

Social Media

It is highly recommended to use social media. Facebook is one of the most dominant communication forms across the globe and the paid ad platforms are cost-effective way to generate some real estate leads. Use this when targeting your core demographic. Majority of marketers include Facebook strategies in marketing plans and you should also. It is a worthwhile, practical advertising investment that would pay off when generating some new leads. Although you do not spend money on the ads, you may still improve generation of leads on Facebook with the use of fresh content, engagement, and optimization.

Real Estate Lead Capture Forms

Majority of people used to look for homes for sale in a newspaper, yet now a lot of consumers start their home search over the internet. Having some forms on your site for lead generation is a good way to bring in the new business. It’s one of the best lead-generating strategies, yet never forget to ensure that your site is fresh and updated so people would keep visiting and you can boost your repeat traffic.

Blog

It can really improve your online presence and show your expertise as a real estate agent. Use this to communicate your grasp of everything related real estate consistently. Never forget to end your blog with effective call to action fill out the form for lead generation or make phone calls.

As a luxury real estate marketing professional, it is important to understand how a luxury brand is born and how it is developed. Here is an example of the challenges in developing the first Chinese Luxury Jewelry brand, Qeelin.

The founder Dennis Chan knew that he could not launch Qeelin in China. The Chinese marketplace would perceive it as a local brand regardless of the quality of the product. He knew that the Chinese marketplace would accept the brand if it was successful in other countries.

The brand was launched at the Cannes Film Festival in 2004. Maggie Cheung, who won the Best Actress award, wore the jewelry. Because she was the first Asian actress to be given this honor, she received worldwide coverage. And, so did the jewelry!

The first sale was made in Paris. They chose Paris as the first point of sale because the world of jewelry in Paris demands the very best. That challenged the partners to strive for and to achieve their potential.

The Results:

“We are currently perceived as an international luxury brand originating from China, and we have a good portion of our clients who are mainland Chinese.”

Qeelin’s target market is women who love haute jewelry (highest quality) from luxury brands. They have a discerning eye and look for handmade pieces with special stones. They do not follow trends; they follow what they consider to be the best.

The style of the designs reflect Chan’s Chinese heritage. One of the standouts is the Qin Qin (kiss-kiss, in Mandarin) goldfish pendant with magnets embedded within the golden lips. Chan explains, “The design has the ability to surprise and give our customers a little bit of a thrill through the unexpected.”

As you launch and build your own personal brand as a luxury real estate marketing professional it is important to understand your target market, i.e., their demographics. It is also important to understand their psychological preferences-their psychographics. By offering the unexpected such as a remarkable closing gift, you too can surprise and thrill your clients and trigger word-of-mouth advertising.

In today’s world telemarketing can be very effective. It can help a business generate leads, make sales, and increase profits. BUT, is it a good idea to do this in the real estate market? This article will examine that concept by looking at advantages and disadvantages of doing it.

One big advantage to using telemarketers in real estate is that it is more cost-effective to use a minimum wage staff as opposed to a higher-priced sales staff. It is also useful in reaching out to other geographical areas, when attempting to solicit new business. Likewise; it is necessary to keep up with current clients, having a telemarketing staff is a great way to do this; as the work is dispersed efficiently to them.

In more recent times real estate developers have begun to use telemarketers as powerful tools to reach a broad range of customers. As we mentioned, it is more cost-effective than using direct sales methods. Your telemarketing crew can reach more people in a short time span. You can always subcontract this work to an outside telemarketing firm. Then; on days where there is not much business, there are NO employees sitting around wasting time AND getting paid for it. You can also get an idea of the potential clients’ interest in your real estate services and receive feedback from them one way or another; thereby eliminating people who are NOT interested at all.

Let us now look at some DISADVANTAGES of using telemarketing for real estate businesses. Whether it is fair or unfair, most people regard telemarketers as a nuisance and want nothing to do with them. A lot of consumers have had bad experiences with telemarketers. Even though these had nothing to do with YOUR business, this will negatively impact people’s view of you.

Another big disadvantage of using telemarketers is the cost of training each person. Even though you are saving money salary-wise, you still have to train the telemarketers. That can be very expensive; especially since most of them will not work out, then that money is wasted.

The real estate business requires its professionals to be extremely knowledgeable in all aspects of the business. Before doing business with you, a consumer wants to know complete details of whatever property they are interested in. If they are talking to a telemarketer, odds are high the telemarketer will not have that information available. Therefore; you most likely have lost them as a customer, as well as any referrals they might have given you.

Then there is the fact that; with a telemarketer, your potential customer is not very likely to receive the face-to-face contact with you that they prefer. People can be quite put off by that. Even though the majority of your communications with them will be via phone or Internet; most people like the OPTION of meeting you and speaking with you in person. If that cannot be done, you will probably lose them to somebody else who can accommodate their wishes.