Archive for March, 2010
Web Design Trends For Real Estate
Posted by Sibet B Freides in Marketing on March 31st, 2010
Your website is one of the most important parts of any real estate marketing strategy. Besides a blog or other social media pages, the website tells your story.
It is no secret that most consumers will research potential properties on the web before they ever consider going to visit. This makes web design extremely important in the marketing process. In most cases your website will be your first and only impression. If you manage to mess this up with a poor design and a lack of information, you might be shooting yourself in the foot from step one.
If your website is lacking, I suggest upgrading it soon to suit the needs of the consumer. Developers should know exactly what the selling points are for their properties and they usually stress these to potential buyers. Are their websites stressing the same things? You would be surprised at how many don’t.
There are several emerging trends right now in the web design industry. They are all predictions, but we are already seeing a lot of them out there. There is one predicted trend that I think will be very useful for real estate marketing.
The “Huge Images” trend will directly affect the way real estate marketers showcase their properties on the web. The use of larger photos on your website has several advantages.
Large interior shots can give potential buyers a great image of what your product has to offer. We can include great detail in these larger photos, which is important since consumers shop on the web first when looking for real estate. Think about those who are moving across the country. They could benefit greatly from large images that provide so much detail that we don’t even have to explain it. The pictures will tell the story instead of our words.
Larger photos can better display a properties interiors, exteriors, fixtures, details, and amenities. By using large photos in web design, you are removing questions and doubts that consumers might have about your property.
The more we can show consumers on the Internet beforehand, the better. If we can convince them that we have what they might be looking for, we have a created a more likely chance for a visit.
This process of web shopping before visiting the property can’t be ignored. This is increasingly becoming the norm of how American shop for not just real estate, but everything. The Internet allows consumers to do their research and the more telling your website is, the better.
How Social Media And E-mail Can Work Together
Posted by Sibet B Freides in Marketing, Social Media on March 31st, 2010
There have been plenty of conflicting arguments that social media will one day replace e-mail. It seems that a lot of people jumped the gun in their assumptions because it is becoming apparent that e-mail will still have its place. In fact, marketers everywhere are trying to come up with ways to integrate the two for more effective marketing.
A recent E-Marketer article says it best, “Social media is a partner, not a threat, to e-mail marketing because it provides new avenues for sharing and engaging customers and prospects.”
In fact, there is great potential for social media to strengthen the use of e-mail marketing efforts.
The E-Marketer article also provides us with some insightful statistics on how marketers are adapting their e-mail marketing strategies to accommodate for social media.
According to the article, 4 out of 10 polled business executives feel that the integration of social media and e-mail should be a top priority in 2010. Improving the e-mail performance, targeting, and opt-in lists were ahead of social media integration.
The sharing buttons incorporated into e-mail marketing pieces will better help the reach of our marketing efforts. I see it as a great way to incorporate people into a new form of communication. It is an invitation for them to join you.
While social media has its distinct advantages over e-mailing, I think that e-mail will have its distinct place in marketing for a while. Until there is a clear-cut replacement for it, one that can not only dictate its functions but also improve on them, I don’t think consumers will abandon it. I think we will keep seeing stronger integrations between the two in not only marketing strategies, but in everyday use.
Smart Phone Applications That Can Help Home Buyers
Posted by Sibet B Freides in General on March 30th, 2010
As consumers continue to download smart phone applications, there uses are not just for gaming or entertainment anymore.
A recent Wall Street Journal article talks about some of the iPhone applications that have been developed in order to help home buyers locate homes and gather information. I think it’s very interesting to see how consumers are starting to use their phones and how application developers are creating software to satisfy market demands and trends.
Earlier this year I talked about the Realtor.com iPhone application but this article lists several more that I think you will find interesting. Some of these are not directly aimed at home buyers but are still very useful.
For example, home buyers are starting to use applications that will rate how safe an area is using their smart phone’s built-in GPS. It’s an application not specifically designed for home buyers, but it is very useful.
Walk Score application allows users too see a neighborhood’s rating in relation to ease of walking. One of the big home buying trends identified for the coming years is a desire for walking within the community. This is becoming important, so Front Seat LLC developed an application to help consumers. This application will rate the ease of walking to shops, restaurants, and other places. Can you imagine a real estate agent telling a consumer that the home is within walking distance of the grocery store only to have that consumer look at their phone and get a different answer? These applications will hold all of us accountable,
It is interesting to see not only real estate but also technology companies developing phone applications that will help homebuyers. This represents a shift in the way consumers are shopping for homes. It is a sign of the times. It represents where we are as an industry and where we are heading. These are only the first wave of applications for homebuyers. It will be interesting to see what other applications will be developed. What about a property tax calculator or other on the go financial applications? I think that this is only the beginning.
How Are Marketers Using Social Media
Posted by Sibet B Freides in Marketing, Social Media on March 29th, 2010
Websitemagazine.com has released their Social Media Survey for 2010. The survey consists of 186 respondents from the marketing and advertising industry. These are individuals who are working on the forefront of marketing everyday. I think it’s interesting to take a look and see how others are using their time and what seems to be working.
According to survey results, 81.7% of respondents claim that they will be dedicating more time towards their social media marketing efforts this year. It’s obvious that marketers see great utility in social media. This is a percentage that I think will continue to rise over time. I would be willing to bet that if you conducted the same survey in July, that percentage would be even larger. I believe that marketers are exploring how to use social media to their advantage and the more successful case studies we read, the more accepted it will become.
One of the larger obstacles of social media is measuring its effectiveness. I am glad that the survey included a questions relating to this. I think it’s interesting to see where people think they are benefiting from social media. According to the survey results, 66.3% say that they have seen more web traffic from their social media efforts. After that, 33.7% have received a better search engine placement.
Towards the end of the blog, you will see a list of typed responses to the question, “What is your primary goal using social media this year?”
This is interesting to me. Most marketers have different expectations and goals when it comes to social media. This makes me wonder about our expectations for social media. Can social media really accomplish all of these things? I actually think they can. This is what I like about social media. If done strategically, it can accomplish many things at once. I think as time passes, we are going to see more and more useful ways to use it.
What Really Caused The Recession?
Posted by Sibet B Freides in General on March 26th, 2010
As we begin our climb out of the recession, I think it’s important that we understand exactly what caused this mess.
If you were to ask someone at random what caused the recession, I would bet that they would blame sub prime mortgages and overlending by banks, but many economist feel that sub prime mortgage securitization isn’t a big enough animal to cause such damage to our financial system.
So what caused this financial collapse?
According to a Housingwatch.com article written by Robert X Cringely, the failure of the Renew Sale and Repurchase (REPO) collateralized securities.
This is one man’s opinion of how we got into this mess and I think it’s worth reading. Below is how I interpreted his theory.
The interesting thing about REPO is that most people have not heard of it. For those unfamiliar with it, REPO has served as the backstop market for global finance. According to the article, REPO is a $20 trillion business. In comparison, the subprime mortgage securitization is only a $1.2 trillion business. A collapse of this market alone would not be enough for the U.S. financial system to crumble like it did. A failure of the REPO market is to blame.
How Did This Happen?
The REPO market grew exponentially in the 1990s in order to support securitization. The problem was that overnight loans lacked deposit insurance for loans and counterparties began to demand collateral to back these loans. This caused demanded collateral fire sales from borrowers, which then led the big banks being under-capitalized.
This of course caused banks to panic and our government wasn’t ready to handle it. Bonds declined and trillions in bank capital vanished. Pretty soon the banking system failed as counter parties became untrusting of one another.
All of this explains way banks have been so greedy with loans. It’s not that the banks don’t want to make loans; it’s just that they don’t have funds to back them. Cringely believes that in order for a true economic recovery to start, we must see the REPO market start its own recovery. He also notes that the FED and Treasury had no chance to stop this impending financial crisis.
As Cringely asks, ”weren’t bank panics suppose to be a thing of the past, thanks to the creation of the Federal Deposit Insurance Corporation in 1934”, he makes a good point.
Why Traditional Marketing Strategies Alone Won’t Cut It
Posted by Sibet B Freides in Real Estate Sales, Real Estate Trends on March 25th, 2010
According to an AdWeek.com article, 80% of CEOs think that they have successfully differentiated their product from competitors. The funny thing is that only 8% of polled consumers agree with the CEOs and their overly optimistic outlook.
Over the past 10 years, some in the housing industry have gotten away with lackluster marketing. When the industry was booming, Realtors and builders didn’t need to focus on marketing nearly as much as they do now.
The recession and the obliteration of the housing market have changed the game forever. I love hearing stories about real estate marketers rising to the occasion of hard times and identifying what is important. These are the companies that have jumped ahead of the curve and have truly distinguished themselves from the rest of the field. It’s not imaginary – it’s real.
Successful real estate marketing during the recession has laid the blueprint for what will work in the future. The AdWeek article says it best; “Mediocrity is getting extinguished with increasing speed via social networks.
We can’t afford to halfway execute our marketing plans. Consumers are adapting to new forms of communication and it’s critical that we are a part of it. Perceived value is important, but real value is even more important. Our marketing efforts should become the product and vice versa.
What you sell should be enough for consumers as long as your product actually contains some sort of value. This isn’t a call to ignore the generation of perceived value; it is a challenge to the way we think.
The next decade will see many changes when it comes to real estate marketing. Buying real estate is an intimate decision. It will be interesting to see how marketers tackle this.
We may be coming out of a recession, but don’t think for a second that traditional marketing strategies and ideas aren’t going to cut it.
Bigger Doesn’t Always Mean Better
Posted by Sibet B Freides in Marketing, Real Estate Trends on March 23rd, 2010
According to a recent Market Watch article, architects report that they are seeing a rising demand for kitchen and bathroom upgrades. Upon reading the article, you might be surprised at the kinds of upgrades homeowners are looking for.
More than 25% of architects responding to the survey say that they are seeing a steady increase in upgrades but not the standard things we are used to seeing.
Architects are noticing that consumer taste has changed over the last few years. Homeowners once had the “bigger is better mentality”. Not it seems that efficiency is the name of the game.
Some of the most desired kitchen upgrades include recycling centers, renewable flooring materials, and a computer area. These desires fit into current marketing trends seamlessly. Consumers are looking for sustainable options and convenient places to “plug in”. This is interesting because just a few years ago remodeling would probably consist of adding an extra dishwasher or two refrigerators. The idea of the current upgrades is to make existing space more usable.
The same principals apply for bathroom upgrades. Some of the upgrades in demand right now are water-saving toilets and LED lighting.
Even though this article focuses on architects renovating older homes, I think developers and builders can benefit from this information.
Whether you’re upgrading your current product or building new homes, I think this article can help you understand what consumers are looking for. If homeowners are making these upgrades on their own, shouldn’t you have them in your new homes? There is no doubt that new home buyers will be looking for these same things.
Baby Boomer Technology Adoption Is On The Rise
Posted by Sibet B Freides in Demographics, Real Estate Trends on March 22nd, 2010
According to a recent CNBC.com article, boomer technology is becoming a booming business.
The 55+ markets are adapting to new technology at a rapid rate. This includes smart phones, e-readers, and social media. Boomers adopt new technologies in large waves. They aren’t usually early adopters, so they begin to use new technology later than younger generations. This usually causes a large and sudden increase in boomer technology adoption, which is exactly what we are seeing. On a recent flight, I noted 40% of the over 50 crowd using Kindles.
The big stat in this article is that baby boomers will make up one-third of the U.S. population in 2010. To accompany that, they will outspend younger generations by $1 trillion this year.
It becomes obvious that this is a market that can’t be ignored. For the last few years, marketers have made the argument that these older consumers will not respond to new forms of digital marketing. The data from this article should change your mind.
According to Facebook, women 55 or over are the fastest growing demographic of the their network. This is a very powerful buyer in my opinion. How many times have we rationalized that social media cant reach older consumers? I hear it all the time and the above debunks this theory. And stats from our own client base prove too that the boomer generation loves social media.
The 55+ markets are obviously not the leading demographic when it comes to social networking, but there has been a massive adoption over the past 6 months. At this point, there is no reason to think that the adoption of new technologies by baby boomers will stop.
So what does this mean for developers and marketers?
I think it’s important that we consider the 55+ demographic when planning our social media strategies. According to the data in the article, skipping on this group digitally would be a mistake and the rationale of “older people don’t use Facebook” is no longer valid when it comes to marketing and addressing consumer outreach.
Boomers Become Cautious As They Enter The Market
Posted by Sibet B Freides in Marketing, Real Estate Trends on March 19th, 2010
As large numbers of baby boomers continue to re-enter the housing market, they do so with caution.
These retiring boomers are seeking an easy and care free lifestyle and are getting it at a fraction of its normal cost. According to an Investors.com article, over half of the builders in active-adult housing have cut prices in hopes of boosting sales in the short run.
Some builders cut prices by more than 25%, the national average is around 13% in discounts. Along with the reduced prices, builders are offering other services that may entice baby boomer buyers. Incentives include paid 1 year community association fees, upgraded appliances and carpet, or architectural upgrades.
While these strategies will probably help builders and developers in the short run, baby boomers are growing increasingly cautious when it comes to home buying. Unfortunately, most of their retirement has been depleted because of economic turmoil. This means that most boomers are funding their new retirement homes with the equity from their current homes. The values of these homes have dropped of course.
Builders and developers in the active adult niche are poised for a major influx of potential homebuyers as the boomers enter retirement. The question though is what will they be looking for exactly? Many think that luxurious amenities such as golf courses and spas are a thing of the past. Others think that once the market returns, so will the desires for luxury.
There is no way to know for certain. It could even be a combination of the two. For this reason, we need to stay on top of our market research. I think that certain geographics will affect the outcome of this debate. A baby boomer retiring in Los Angeles will probably have a different retiring preference than one in rural settings. Also, will more people choose to retire where they spent most of their life? Will taxes encourage more flight from the Northeast? One thing seems evident, at this point smaller and more efficient seems to be the trend.
What To Think About When Building For Multiple Generations
Posted by Sibet B Freides in Real Estate Trends on March 18th, 2010
According to a recent Coldwell Banker survey, 70% of their sales agents think the current economic conditions will cause a greater demand for multi-generational homes in the next few years and probably beyond. The survey also reveals that 37% of those agents have seen an increase in home buyers looking to purchase homes to accommodate multiple generations.
This data confirms a BuilderOnline.com article written back in April 2009. It includes AARP survey information about the increase of multi-generational homes from 2000 to 2006. At the time, the included data wasn’t recent enough to reflect the harsh economic downturn. A downward economy was only an assumption at that point.
The Coldwell Banker survey confirms some of these previous assumptions. The author speculates that older family members might be providing financial assistance to their children. However, the general feeling is that this new trend in older parents moving in with their children is something that would happen regardless of financial help. The cost of elder care facilities might play a part or is it that families are searching for another time where extended families helped raise the children?
An increase in demand for multi-generational homes creates a niche market within the industry. Developers and builders looking to enter this niche market should research floor plan options and amenities desired during planning. As the BuilderOnline.com article says, “Are you moving mom into a spare room? “. No, you need to provide living space as well as a place to sleep.
Each generation needs its own space. If this isn’t included in your product, you are not going to be successful in this market. Incorporating two master suites has been proven effective in multi-generational design coupled with multiple laundry rooms.
Features for these homes need to appeal to each generation. Safety features for the older generations are crucial when designing the home.
Creating a planned community for multi-generational homes will require you to promote community across multiple generations. Boomers love socialization and will crave areas to congregate. Their children may want similar things but may also need playgrounds. It is a safe bet that the majority will want walking trails.
This might seem challenging, but there seems to be great potential in this niche. This is a trend that I would watch closely. It will be interesting to see who does it right and who comes up short.
