I just finished reading in the Sales + Marketing Ideas magazine the article “What’s Working” by Scott Stroud. The article was right on target! The article basically describes the tactics and strategies that the builders and developers are using to buck the current market and actually make sales and grow their businesses.
The described strategies are exactly the tactics that NRTDA is using to increase sales momentum at our communities.
1) Know your competition. It is important to know who you are selling against. Pricing, incentives and marketing tactics are changing daily and you need to be ready to adjust.
2) Consumer Peace of Mind. People want to have confidence in the builder and or developer. They want to know the owner is stable as well as if a condominium community understand the stability of the HOA.
3) Communicate the Value Message. Yes, price is very important to the home buyer but other factors impact the value message as well. Location and lifestyle are crucial to the value proposition.
Grab hold of the above strategies and you can increase your sales velocity!
In this challenging economy, we struggle to provide marketing ideas and outlets that reach our audience both directly and cost effectively. But, just as important as marketing outreach is the first impression our communities give these buyers once they are in the door. One of the most important marketing tools is the property itself and how it is represented by its model homes.
We have found that modeling a home or condominium floorplan allows the buyer to better visualize the space and to see how they can actually live in the home, and is a marketing investment worth making. Developers are now very considerate of maximizing the space of their floorplans and want to showcase the great value and live-ability of their homes. By doing so, certain floorplans that weren’t appealing as empty units feel comfortable and conveniently laid out when properly decorated. Buyers can then visualize their life in that home.
We have had much success with model homes at our properties. Gallery Residences had a 2 BR + den floorplan that hadn’t sold in years. Modeling that floorplan and showing what can be done with the den space resulted in 8 sales of that particular plan in less than 6 months. At 1010 Midtown, a floorplan that had not sold at all was modeled. Within 5 days of completing the model, the property received a contract on that particular floorplan. At 10 Terminus Place, one of the models has moved 4 times in the past 9 months because each time a floorplan type is modeled, it sells.
Given this, it’s not just marketing outreach that results in qualified buyers and therefore, sales. It’s also making sure the homes are appealing to the target demographic. Making floorplans feel like home, rather than an empty space makes a huge difference in the buyers’ minds. Model homes give a much better first impression than an empty one, resulting in happy buyers, and therefore, happy sellers!
As we approach the mid-point of 2010, I recently took the opportunity to sit down with Susie Proffitt of The Florida Home Show and Atlanta’s Best New Homes to talk about how our company, our clients and consumers responded to the real estate market during the last 18 months.
Though economic factors continued to impact the industry and create apprehensions and obstacles for potential home buyers, many of our diverse developer, bank and institutional clients were still able to buck trends and increase qualified traffic and, more importantly, sales. In the below video, Susie and I discuss how NRT Development Advisors helped them to do so by creating and executing innovative, results-driven marketing and sales strategies, including repositioning, partnerships, events, social media outreach and more.
I invite you to take a few minutes to watch the below video (by clicking on the image), which offers insight regarding how to approach the current market and includes video of the beautiful homes we have the privilege of representing.
When selling your home, consider a different approach to reach your goal. Many home owners today want to move up, down or out of state to improve their lifestyle. Unfortunately many find themselves in a dilemma, their existing home is not worth what they feel they need to make the move. Market conditions on average have effective home values in Georgia 22%, that’s a lot of value and for many it creates a situation that only time will fix. But for those with equity in their home, who are stuck because of the loss of value, thus preventing them from finding a great deal on a new home, there is a solution. However, it does require a paradigm shift. Consider the approach of analyzing the net effect of selling your home at market value and buying a new home at a considerable discount, the net result should pay dividends. Price your existing home to sell in today’s market and go find yourself a equal or better value on your new home, any loss you may incur on your existing home can easily be recovered on your new purchase. Hire a professional to analyze your particular market and price your home to sell, and then get out and find an even better deal.
Keep in mind this is without a doubt the best time to buy a home I have seen in my 25 years in real estate. Don’t let it pass you by.
Coldwell Banker NRT Development Advisors ignored traditional real estate marketing practices to sell the units and instead tapped its global network of brokers to identify target buyers. It didn’t take long to spread the word about Mosaic at Millenia’s uncommonly high occupancy rates, plentiful selection, quality construction and realistic pricing, as well as Orlando’s strengthening economy, before NRT Development Advisors received a surge of contracts. In the past two months, Mosaic at Millenia experienced a level of investor interest that Florida hasn’t seen in years, possibly pointing to the beginning of a local – or event statewide – market revival.
It seems as if international investors are itching to get back into Florida’s real estate game. While they may be much more exhaustive when analyzing today’s purchases, these cash buyers are clearly not afraid to jump on sound investments when they see them – as evidenced at Mosaic at Millenia.
Though local housing experts predict that Q1 2010 might mark the new housing bottom following the three-year downturn, Coldwell Banker NRT Development Advisors experienced an increase in qualified traffic during the quarter and lead Atlanta’s luxury condo sales at the luxury properties ($500,000 and up) it markets and sells on behalf of builders, developers and banks.
Gallery Residences, the 27-story Buckhead condominium, features upscale amenities including 24/7 concierge service, an onsite art gallery, panoramic views, a state-of-the-art fitness facility, a tennis court, a fully-equipped business center, furnished guest suites and more. And, 10 Terminus Place, the 32-story mixed-use development at the intersection of Peachtree Road and Piedmont Road, is known for its conveniences such as spa and massage services, access controlled parking, a fitness and yoga center, a saltwater pool and spa and porter service.
For such high-end properties, Coldwell Banker NRT Development Advisors utilizes the expertise and experience of the company’s Coldwell Banker Previews International marketing platform to create tailored messaging and positioning campaigns. As a result, the company has continually increased its sales pipeline throughout 2010, illustrating a very active segment of the market that is focused on superior location, quality construction and value.
It is clear from Q1 activity that as consumer confidence continues to improve, upscale buyers will increasingly return from the sidelines and take advantage of the extraordinary opportunities available in today’s market.
The pendulum continues to swing back and forth with regard to today’s real estate market and economy. One month sales are up, prices are down. The next month, the prices are up and sales are down. Still, based on an overall year to date comparison, according to the National Association of Realtors, things are beginning to improve and hopefully employment will follow suit.
Florida which ranks in the top 3 of distressed markets in the United States is also beginning to see a shift. One would hope so, as in my 30 years in real estate, I have never seen prices or mortgage rates at this level. Opportunity knocks and then there is the proverbial “BUT” in the equation.
While mortgages are being offered at wonderful rates, the qualification process both for the buyer and the property are getting more stringent. Changes are happening literally every day. A buyer can purchase an entry level home or condominium in areas of Florida for as little as $20 to $30,000 dollars. Higher end homes have slashed prices 50% or more to try to generate interest.
The tax incentive which expires in April has been a key component to driving entry level, owner occupied sales. There are now opportunities for existing owners to receive a tax credit as well, once they sell their home, at a below market price. Still, the opportunity is great to purchase more for less.
With this said, inventory is lower and absorption is gaining BUT there are still more foreclosures coming to market which will affect pricing.
Hopefully loan modifications will become more effective and people can hang on to their homes which will help in terms of stabilizing and improving the Florida market. This will take many of the foreclosures and short sales out of play which will reduce inventory and strengthen demand, as well as raise prices!
It’s a slow boat but the ship has definitely left the dock and if you are considering a primary residence or second home in Florida. Now is the time to get serious.
Ask lots of questions, inquire about condo HOA’s and percent of developer rentals as well as the percent of investor owners. Make sure the HOA is not more than 15% in arrears. These are part of the perimeters that qualify a condominium for financing. Be prepared to have your financing in order before you purchase or have verifiable cash. Always inspect the property with a licensed inspector before closing. Check out national real estate websites. They offer great information.
Last but not least, contact a REALTOR to guide you through the buying process. We at CBNRTDA are here to help and know the rules to make your purchase easy and worry free.
Virtual Views is starting a new column titled, “Friday Five,” which is an informative quick read that gives you the top five points on a particular real estate-related topic – including trends, neighborhoods, industry changes and more. We’d appreciate your feedback. What topics would you like to hear more about? E-mail us and we’ll include it in a future Friday Five.
By: Brad Horner
Of Facebook’s 300 million users (making it the largest social network on the Web), an estimated 175 million of them log onto Facebook each day. And that staggering number doesn’t even include those using Facebook Connect.
Builders and developers cannot afford not to have a presence on Facebook, especially considering that 90% of homebuyers start their home search online. Facebook provides an unprecedented marketing opportunity to share information about your development on a social network where your potential buyers are already congregating.
But there are clear rules by which you need to abide in order to be seen as a trusted source of useful information and not an annoying spammer. Here are our top five hints about how to utilize Facebook as part of your development’s comprehensive marketing program:
Facebook and corporate Web sites have very different rules and languages. While it’s expected that a company’s Web site will contain very sales-y language, that type of language is not used – or tolerated – on Facebook. Instead, use an entertaining conversational-style tone on Facebook and offer compelling information. Do not – I repeat – do not solely promote your brand or product. Consumers don’t want the same door-to-door salesman knocking on their doors every single day pushing company messages, and they don’t want to see companies doing the same on Facebook. Instead, offer a mix of fun information about the neighborhood, informative updates about the real estate market and links to articles of interest, in addition to information about your development’s latest offerings. Truly engage with your fans.
Facebook’s advertising opportunities provide a way to share your message with an extremely targeted audience for a very reasonable price. Unlike most advertising vehicles, Facebook allows you to target your exact demographic by identifying the age range, location, interests, employment status and more. Use these ads to promote limited-time deals, special events and the community’s unique amenities.
Take advantage of the many ways you can tailor the company’s Facebook page. Of course, include links to your Web site and blog and upload photos of model homes and events. But there are also applications that will allow you to post virtual tours, collect contact information for future communication, automatically upload new blog posts and post presentations.
Fully promote your events on Facebook by including photos, videos, directions and links to helpful information. And when fans RSVP via Facebook to an event, it shows up on their wall, thereby exposing the event to additional networks.
Take advantage of Facebook’s Insights. Regularly monitor your fanbase and page interactions. How quickly is your fanbase growing and what is the demographic breakdown? Are you losing fans? What links/photos are being clicked the most and how can you use that information to tailor future posts? What type of updates prompt the most feedback?
In today’s economy, everyone seems to be focused on price. You can’t open the newspaper, your mail or your e-mail without being bombarded with the deal of the day, the month and, in some cases, the deal of a lifetime.
And no other industry has been more impacted by the focus on price than real estate. Which I find funny, actually, because since the beginning of time, the 3 most important evaluation criteria for a real estate property have always been location, location, location.
While location continues to be a critically important aspect of the successful marketing of a property, an overwhelming percent of today’s buyers are shopping price first and neighborhood second. People on the hunt for deals are crisscrossing cities to find the “right priced home.”
But a competitively priced property alone will not make the sale. While this may sound contradicting it is actually at the heart of selling any product.
The reason revolves around the need for products to have an equitable price-value relationship. Whether it is real or perceived, the relationship must be equitable or the sale will not close.
It is only when value is perceived to equal to or greater than price that the consumer begins to buy. The absolute price doesn’t really matter in this equation. This is not about affordability. It is more about reasonable, sound and understandable value.
For instance, NRT Development Advisors helped The Stacks promote a sale on one of the community’s studio homes. The attractive price point helped to bring qualified buyers to The Stacks, and the studio quickly sold. But it wasn’t price alone that sealed the deal, as other nearby communities were selling larger homes at lower prices. The Stacks team helped the buyer to see the studio’s full value that was included in the price, which included lower HOA dues, a stabled and established Homeowners Association, a strong sense of community among the current homeowners at The Stacks, walkability to restaurants, true loft living with original brick walls and more.
First and foremost, the purchaser must understand what’s inside the deal. It is only then that value can be assessed. It is for this reason that it is critical for any sale to fully explain what is included in deal including the location advantages.
How do you catch a falling knife? You don’t, if you’re smart, you pick it up off the ground.
How do you invest in real estate when the asset value is in free fall? Here is the good news: the ground or bottom may now be in place. Over the past year many persons have been investing in real estate and have found their purchases to be good investment decisions. Moving forward buying now will still lead to a wise real estate investment! Take advantage now!
According to The Case-Shiller index of average home prices in 20 major cities, prices have not only stopped falling but have increased seven straight months on a seasonally adjusted basis. This sentiment is echoed by many real estate brokers that also believe pricing has stabilized and buyers’ confidence in the value of real estate has started to return.
However, we should expect a bumpy ride as foreclosures continue to add inventory and further challenges to the housing recovery continue. Therefore, it is always wise to choose a sales and marketing company that understands the reality of the market.
Leslie Williamson
Christine Macrenaris
Maria Mena
Jessica Weston
Amber Cooley
Brad Horner
Collin Ellingson
Bob Romano
Alec String
Judy Price
Meril Missbach
Marty Griffin
Lenny Rindsberg
joanhertz
Holly Rabits
Nancy Keszthelyi