Can The Baby Boomers Save The Housing Industry?
Posted by Sibet B Freides in Demographics, Real Estate Trends on March 8th, 2010
Will baby boomers give homebuilders the same boost in sales as they did during the 70s and 80s? Many homebuilders seem to think so as they predict the aging boomers will be moving into retirement style housing soon. But will they call it “retirement” and will they even retire? What will their lifestyle look like? The tag “boomers” came along due to this group being among the wealthiest. Will this still hold true? I suggest reading a great article addressing the topic. You can read it here. I will use the traditional labels for sake of this article.
It is no secret that the 55+ home buyer market has been a primary target for the real estate industry. When you look at the numbers, you can understand why the industry is gearing up for the movement. According to the RIS Media article, a quarter of the U.S., more than 85 million people, will be 55 or older by 2014. When asked, 40% of 55+ homeowners say that they are interested in alternative housing.
The most interesting part of the article is where the debate of the actual product is talked about. As the author puts it, “The baby boomers are absolutely unpredictable”. Unlike the older boomers, this new wave is more individualistic.
What we do know about the aging boomers is that they aren’t particularly interested in owning and maintaining a large home. According to the article, most retirees are asking for homes with average of 1900 s.f. They aren’t looking to expand their life; they are trying to make things easier.
I agree that we shouldn’t assume that retiring home buyers are looking for luxury in their lifestyle. In fact, data and polls would suggest the opposite. It seems that the 55+ markets are moving for two reasons: to be closer to family and to downsize. It’s becoming more evident that they aren’t looking for the more expensive and luxurious lifestyle. However, they still expect finishes in their home that match what they are used to. While I agree that we cant assume what these aging boomers want, we can be sure that they want it cheaper than they have in the past.
How Social Media and SEO Work Together
Posted by Sibet B Freides in Marketing on March 8th, 2010
Susan Sweeney, social media guru, has written a great article explaining the benefits of social media in relation to SEO.
All of the acronyms and rankings can be confusing, but Sweeney does a great job of giving a clear and concise explanation of how social media and SEO can work together.
You can read her article here.
After reading Sweeney’s post, I have my own take on the subject. Networking with social media does extremely well in relation to SEO and the building of a positive on-line presence.
It Creates A Natural Network
I like to think of social media as a way to create an on-line network that would serve the same purpose as traditional work networks. One of the greatest things about social media is that allows us to easily connect with others in our work fields. This is the big pay off. Social media has allowed us to syndicate the process of finding industry peers and authorities. It’s like networking on steroids.
I think that once these trusting relationships have been formed with either colleagues or consumers, links are then shared to sites that are actually relevant to the subject matter. As Sweeney mentioned, relevance is important. She calls this natural link building. I look at it as if a colleague decides to pass my business card along to someone they meet. It’s the same thing, but with a link to your blog or website. It might even be your Facebook or Twitter page.
Sweeney also talks about the debate of whether or not links inside of social networks are valued by search engines. Google displays the latest on a given search query so it’s hard to deny that there is some value.
My point is that while SEO is an important aspect to your on-line marketing strategy, social media can provide a ton of high-quality traffic if done correctly. Plus, those good relationships you form from networking will lead to solid links to your site, which I can guarantee you will help your search engine ranking.
Honesty Is Crucial When It Comes To Marketing “Green”
As we anticipate the housing recovery later this year, there is one thing that we can count on. Consumers will be looking for sustainable product design that will save them money.
I have touched on this topic before on IdeaViews, but I would like to shed a different light on the matter.
Builderonline.com published an article in late January called “How to Avoid the Legal Pitfalls of Green Marketing”. There are few pitfalls when it comes to marketing green products but misleading claims about your products will get you into some serious trouble.
The article is a great reminder of the responsibility that comes with marketing your sustainable products. Embellishing the truth or even lying about the certifications of sustainable developments will not go unnoticed. The FTC, green enthusiasts, and competitors will be making sure that developers and marketers are telling the truth when it comes to green homes.
The article cites some great examples of how companies are getting in trouble with their green claims. Instances where companies are creating their own green rating system, exaggerating features of green products, and making vague claims have gotten reputable companies in trouble.
Builders need to remember that a misunderstanding of the products they build with may result in punishment or scrutiny. This makes it extremely important that you research your building materials and the companies that produce them. A failure to do so will not only make you look bad in the eyes of consumers but it will be an expensive mistake to fix if you are forced to replace any alleged building materials.
The sustainable team at Epstein Becker and Green is well versed in the legal issues with sustainable products.
“There are unique features of sustainable construction that we’re helping our clients understand,” said Maxine Hicks, Managing Partner of Atlanta’s Epstein Becker and Green law firm, a leading specialist in sustainable communities “Many of the building products and techniques are new and don’t have a proven track record, and yet the builder, designer and contractors may be liable for achieving a certain performance level for the building. It’s important to do your homework, and have competent counsel to guide you through the process.”
The last line of the article says it best; “You as the builder are the first target”.
Are You Welcome At The Social Table?
Posted by Sibet B Freides in Marketing on March 3rd, 2010
A big part of developing a social media strategy involves understanding the target audience you’re are trying to communicate with.
Professor Mikolaj Jan Piskorski of Harvard University has developed one of the most thought provoking hypothesis on why social network users behave the way they do. I recommend reading about his studies, which you can do so here
According to Piskorski, social networks are the most useful when they address the failures of off line networks. I think of social networks as a complimentary system for our off line networks.
What makes social networks appealing and useful is their syndication. Piskorski addresses this clearly. By utilizing social networks, we are able to reach relevant people faster and in larger quantities. This is the major benefit of social networking to me. Being able to reach peers, industry leaders, and consumers has become easier through social networks.
The most interesting excerpt from the article is where Piskorki gives the analogy of a group of friends sitting around a table talking. An advertiser, that no one at the tables knows, sits down and starts talking about a product that none of the friends have an interest in. How do you think that sales pitch is going to go?
We shouldn’t treat our social network interactions with consumers any differently than we would treat our face-to-face interactions.
This is the hard part for marketers and businesses. It is our natural inclination to want social media to act like traditional media. We want a one-way message to do the trick, but it will never work. Even though we understand the necessity for communication in social media, we often don’t take the time to craft a message that invites a conversation. We need to make sure that our social strategies make sense to who we are trying to communicate with. They should understand our product and why we are talking to them. If they don’t become engaged, then we have wasted both our time and our money.
Getting Ready for The Housing Recovery
Ashley Jennings has written a great summary on some of the design highlights from the International Builders Show. She thinks, and I agree, that some of her suggestions will make a huge impact on your sales success as we begin our climb out of this recession.
You can read Jennings’s article here.
I won’t go over every product that Jennings mentions in her article, but I will say that I like how she explains why they add perceived benefits for consumers.
Jennings really stresses the need to appeal to the savvy home buyers who are a part of the “Green” consumer market.
I think one of the bigger take aways from her article can be found in the paragraph where she talks about wood flooring.
“Regardless of the wood flooring that you install, it is clear that buyers want hard surface floors that have an eco-friendly oil finish that a sealer with VOC toxins.”
This says it all. As we limp out of the recession and homes start selling again, there is going to be a new wave of consumer demands that many sellers will encounter for the first time. Consumers are going to want the high quality finishes they are accustomed to but are also seeking eco-friendly products that will save them money. I don’t think it’s going to be good enough to boast sustainable building materials without showing consumers where they are going to save money.
As the housing market begins its recovery, we need to makes sure that we are ready to answer any questions consumers may have. It’s highly competitive already and perhaps sustainable homes give you an advantage over foreclosures. Make sure you that you have your product ready for the “new normal” consumer.
Your Consumers Have a Problem. Can You Fix It?
Posted by Sibet B Freides in Real Estate Trends, Sales on March 1st, 2010
I read an interesting article earlier this week about how to increase subscribers to you website or blog.
While I don’t exactly agree with his advice on adding subscription buttons everywhere, I do agree with his philosophy on visitor intentions and motives. You can read the article here and decide for yourself
As the article mentions, people are reading your blog or viewing your site for selfish reasons. I have said it before; consumers visiting your site don’t care about you. They are visiting your site because they need something that you have. This is the only reason people go to websites.
When I think about consumers using the Internet to research and shop, I try to think of it in simple terms. Consumers have a problem. They are trying to solve their problem by either buying a home or consuming a product. As marketers, it’s our job to make it look like we have the answer. We must be able to convince them that we have the answer to their problem. Unfortunately, we aren’t given much time to prove this. Consumers will give your website less than a minute to prove itself. This means you have only seconds to convince them to stay on your site.
It’s challenging, but its what we have to deal with. I do agree with the author that we need to remind users of the benefits we can offer. His point is that our websites and social media pages mean nothing unless we have something to offer our followers, visitors and subscribers. People are only looking out for themselves.
It is imperative that we give a little away in order to receive something in return. If you have a real estate blog, you need to give away some useful tips on how to house shop and what to look for. It builds credibility and it gives visitors a reason to return to your site or maybe even subscribe to your e-mail list.
Living Large in Your Backyard
When was the last time you really truly communed with nature?
Or better yet, how many of us really want to venture from the comfort of our homes to rough it in the wilderness with Mother Nature’s denizens? The truth be known, most of us want to answer that primordial call of the wild from within the confines of our own property lines; close to the fridge, the flat screen and our favorite lounge chair. Outdoor living, once the domain of early pioneers and settlers, is now the rage for many of us city slickers and suburbanites.
In our day and age, the worship of nature has taken a different path, in many cases one that leads directly from our home to our backyard. As an Architect, I always strive to create designs that not only function, but inspire as well.
Oftentimes, the solution lies in the marriage of indoor and outdoor spaces, where each intuitively compliments the other. Innovative solutions that provide cozy, inviting outdoor areas for relaxation and entertainment can, not only enhance your well being, but provide years of care free enjoyment. These solutions often combine living, dining, recreational and food preparation areas to create unique and dramatic multi-functional statements. While there are a myriad of ways to design outdoor living spaces and countless selections of fit and finish, it is always best to tailor the space to reflect your own lifestyle.
Terraces or lawns fitted with outdoor fireplaces or fire pits, coupled with comfortable seating groupings and an adjacent pond, pool or waterfall provide a perfect setting for a good drink, lively conversation and a glimpse of the stars under the moonlight. Add a pavilion, a hammock, some indigenous plantings and an outdoor kitchen (food always tastes better outdoors to me anyway) and you may never want to go back inside.
These outdoor venues are a terrific way to express one’s individual taste and personality. They transcend age and gender, their appeal is universal and they can be as casual or as sophisticated as one chooses.
Arbors, gazebos, reflecting pools, Koi ponds, waterfalls; moonlighting, you name it, the choices and combinations are only bounded by your imagination. And yes, you can always make room for that flat screen.
While one may think that these oasis inspired retreats are only for the wealthy, effective outdoor living really can be achieved on a budget. Retailers, seeing a burgeoning market, have embraced the outdoor living concept as well, and have quickly moved to take full advantage of this trend. By offering reasonably priced furnishings, accessories and gadgets they have made the outdoor living experience more affordable than ever.
Be it a $10,000 stainless steel do it all grill or a $100.00 hardware store special, a hand built stacked stone fireplace or a portable chimney, the allure of outdoor living is within the grasp of everyone’s budget.
Next time you are relaxing in your piece of backyard paradise, take a deep breath and gaze skyward. You just may be closer to heaven than you think.
Written by Barry Coyle
www.cccaarchitects.com
Your Website Is Your First Impression. Don’t Waste It!
There is a great article about website development and ranking that I would like to share with everyone. You can read it at Inman.com.
It’s amazing that even the most powerful brands in the world (Coke) can get their website design wrong. The take-away from this is that there are experts in the industry who advise about how to implement SEO, social media, video usage and historically their advise works. Web and social media are such an important part of your marketing package – don’t get it wrong.
Here are a few points and take aways from the article.
Video Rules
Especially for real estate marketing, video can play the key role in search engine optimization as well as enticing the buyer to your community.
We Need To Answer The Questions That Potential Buyers May Have
This is crucial when developing a website. It’s no secret that when today’s consumer wants to learn about a property, they go immediately to the website. When consumers visit a website they are doing so with questions in mind. They are looking for answer to questions they have pertaining to their wants and needs. This could be anything from amenity details to surrounding restraints. When we design our websites, we need to design them with what the consumers may have questions about. And even if the question is negative, you need to address it.
Simple Search Terms
The article touches on simple search terms. This may seem trivial, but you would be surprised how often this is ignored. According to Inman, only 22% of all searches contain four or more words. The lesson here is that consumers search in a simple manner. If you are developing a keyword strategy with phrases containing more than four words, I would suggest you re-think things. I can’t say that you won’t succeed with your efforts with four or more words, but I will say that data proves that keywords containing three are less words are more effective.
67% of Searches are Driven by Off line Channels
The author of the article finds this surprising. I don’t find it surprising at all. I have always believed that real estate is a market where referrals are your best friend. This is why I push social media so much. Social media can take referrals to the next level by putting them on a public channel for everyone to see. Buyers research not only properties, but also the agents and companies selling them.
With that being said, we shouldn’t under estimate the value of word of mouth referrals.
Website design and Web Ranking can seem like a daunting task, but it’s worth every bit of the effort. Real estate companies can’t afford to skimp on their website. You are who your website projects you to be and you only get one chance to make a first impression.
Lower Real Estate Business Costs With Virtualization
Posted by Sibet B Freides in General on February 24th, 2010
There was an interesting article in the Atlanta Business Chronicle recently about how large corporations are saving money through virtualization.
For those of you who haven’t heard of virtualization, I will explain. Virtualization refers to the creation of virtual computing space used for security, storage, and networking. You have probably heard of “cloud computing”, which is made possible by virtualization.
Businesses who use virtual servers will spend a third of what they would pay for physical servers. This is because there is no hardware or software to mess with. Plus, utilizing virtual servers will open up space and reduce labor.
Small startup businesses will be the ones to benefit the most from these virtual servers at first. By utilizing this server technology, companies can reduce server, labor, and space costs. Theatrically, a small business will be able to support more employees with a substantially smaller number of servers, which of course comes at a savings and an increase in proficiency. Larger companies have been the early adopters of this technology, but it is going to take them longer to fully integrate the systems and to see the savings.
Even though the topic of virtualization isn’t exactly related to real estate, it is related to your bottom line and I think it can help all of us. Companies all over Atlanta are looking for effective ways to reduce costs without reducing their staff. I think this is a great direction to go in for some savings. It seems like a win-win deal. You save money while increasing the efficient use your space, staff, and equipment.
Removing The “R” Word From Your Marketing
Posted by Sibet B Freides in Marketing on February 23rd, 2010
WSJ.com published an interesting article detailing the re-branding of several prominent and high-end hotels here in the United States. You can read the article here.
It is amazing that the infamous “AIG effect” is causing such a change in the resort-hotel industry. It seems that in this case, perception is reality. It’s pretty obvious to me that this shift is occurring in real estate markets outside of hotels.
For example, we are seeing a significant shift in the way the 55+ markets are beginning to look for retirement living. In a previous blog, I explained the shift from resort style living to more natural and efficient amenities. It is obvious that this is a movement affecting multiple markets because of economic conditions.
The major shift towards more efficient housing spaces in all markets can bee seen in their branding and re-branding. Words like “resort” and “luxury” are being dropped in response to the wants and needs of consumers. These words carry a negative vibe and can potentially scare off potential buyers or renters. It’s apparent that consumers aren’t looking for luxury right now, but efficiency and affordable pricing. These things are more important than resort style amenities. I wonder how many people hear the words “resort style amenities” and become discouraged because of perceived costs. The way they define “luxury” is changing too.
High-end hotels are surviving because they are embracing the change. Unfortunately, it took a while for them to realize that the re-branding of their product was necessary and during that time, they lost a lot of money. This seems to be the case for most of the real estate industry. We are having to uncover creative ways to present ourselves to consumers and this change might not be as obvious as dropping one word from our names.
