Archive for June, 2010
The Aggressive Green Market
Posted by Sibet B Freides in Green, Marketing on June 30th, 2010
As more bargain foreclosures enter the market and existing home prices continue to drop, things aren’t getting easier for builders.
While things seem to be improving slowly, some developers and builders have figured out that aggressively marketing their green homes may be to the key to their success. A new neighborhood in Arizona called Lyon’s Gate, which opened this past weekend, features some of the most cutting edge green technology seen in master planned communities yet. The big feature is the advanced solar electric and thermal system that generates twice the energy per square foot of most solar panels today. To top it off, homeowners can control and monitor their systems from a computer or even their cell phone.
This is amazing considering that this sort of technology wasn’t even available this time last year, according to a WSJ.com report. These features are not cheap and the developer was actually able to install them due to the deal they got on the community’s land last year in the wake of falling prices.
It will be interesting to see the end result of this community experiences. I believe that the builders that are embracing green practices and marketing accordingly will see the greatest return in the next few years. Meritage Homes, owner of Lyon’s Gate, was in a great position to install these sustainable features in their homes. The cost of the land made the decision to install them easy. Future properties will not be so lucky and I wonder if competitors will try to match their prices with a similar product. These are the interesting scenarios that I cant wait to see unfold as the market recovers. I think we will see a clear distinction in the strong and the weak when it’s time to start building again.
Brands Need A Purpose To Find Their Market
Posted by Sibet B Freides in Marketing on June 28th, 2010
It’s amazing how many brands or companies conduct business with no real purpose besides profit. I am not one to say that profit isn’t the motivating factor when it comes to business but I would say that the companies that are more successful understand that adding purpose to their brand is one of the most important things they can do.
Erin Mulligan Nelson, VP – Chief Marketing Officer at Dell, has written a great article for Advertising Age that talks about the importance of adding purpose to your brand. Nelson breaks this idea down into a three-point system, which I find to be useful and truthful. She cites her examples from her experiences with Dell making her points valid in my opinion. Here are a couple of points:
Let your customers, your people, and your heritage be your guide
Purpose is derived from history and people. History refers to past ideas that were successful and the attributes that your company is known for. This is only applicable if you have a successful history. If you’re a new company then you are faced with the decision of what your purpose will be. If you’re a company who has been around for a while then you probably already have an identity. A solid example would be a development company who cares deeply for the environment. Their history should reflect this and employees should share this passion. It should be a cascading effect. Employees must represent the purpose of the brand. This is highly important in real estate.
Use your purpose as fundamental driver of your communications and customer-engagement strategy
I think this goes back to creating a niche for your business. Your passion and purpose should always describe your niche. If that same hypothetical development company communicates in a language similar to their passions and purpose then they will attract the appropriate prospects. Potential buyers who hold similar passions will enjoy communicating their passions and this creates a strong bond between a company and its customers. The truth is that people want to stand for something and a major way they express that is through their purchase decisions. We buy hybrids because we care about the environment right? It’s the same thing with real estate. People are going to buy sustainable products because they either care about the environment or they want to lower energy costs. If your passions reflect on your product and employees then the right consumers will no doubt see the value in your product.
The bottom line is that brands need to have a purpose to find their market.
More REO Homes To Come
Posted by Sibet B Freides in Real Estate Economics on June 25th, 2010
As the country waits for a strong housing recovery that many predict will come in the 4th quarter of the year, there are some less optimistic reports.
Tracking the number of REO homes in America is a difficult task for anyone. Because of this, it’s hard for us to gain a clear perspective of the current condition of the housing market. As time passes more distressed properties are coming to market. It’s the shadow market everyone was worrying about earlier this year.
Housing economists across the country are having problems calculating the true number of REO homes. A WSJ.com article reports that while two leading economists are close with their predictions, neither one considers their findings sound. One thing that they do agree on is that the number of REO homes will increase in the coming quarters of the year.
In addition to these mystery numbers we must remember that struggling borrowers out there are at risk of losing their homes every month. According to the WSJ.com article 14% of mortgage loans on one-to-four-unit homes were delinquent or in the process of foreclosure. This represents 7.3 million households nationwide.
I wouldn’t expect an accurate estimate of the number of REO homes in our country anytime soon. Experts think that those looking for answers could be searching for the next two years. Let’s just hope a recovering economy can take the focus off of REO homes and on to a positive recovery.
Mobile Phone Real Estate Applications Are On The Rise
Posted by Sibet B Freides in Marketing, Real Estate Trends on June 24th, 2010
The iPhone real estate application craze is in full effect. There are 20+ apps in the Apple App Store and a lot of them have been developed from some of the biggest names in the real estate industry. For example, Realtor.com, Zillow, and Homes.com all have iPhone apps available for download.
Each application is similar but each also has its own special features not shared by others. Inman.com has a great article with a round up of the top 16 and their descriptions. They ranked the apps based on TopAppCharts.com rankings. If you want to learn more about these apps read the article here.
I will refrain from describing each one and instead talk more about the relevance of the growing number of mobile real estate applications or tools.
The mobile knowledge consumption, communication, and real-time update trends have been taken seriously in my office and businesses across the country. What we are seeing now is the fruition of these trend predictions. I think from here on out we should drop the word trend when it comes to talking about mobile applications and their usefulness in real estate marketing. The number of emerging apps, the overwhelmingly warm reception of the iPad, and the fact that the new iPhone sold out in hours last week all point to a firm change in how homebuyers are searching for homes or at least desire to. All of these points serve as strong indications of the permanent mobile changes within the industry.
I advise you to take these changes seriously. When the housing market does make its comeback, we all know how buyers will be searching for homes. Don’t make the mistake of ignoring the power of mobile.
Luxury Housing Market Showing Positive Signs
Posted by Sibet B Freides in Marketing, Real Estate Economics, Real Estate Sales on June 18th, 2010
Recent reports show that the luxury housing market is showing a strong recovery from the housing crash of 2008.
A WSJ.com article reports that several regions are selling luxury homes at volumes similar to those of the first-quarter reports of 2005, a year in which existing-home sales volume peaked nationwide. According to the article, the regions that are still struggling share the strong characteristic of being located in suburban settings where more urban properties are experiencing great interest including multiple offers and bids.
In fact, the article tells the story of a couple living in San Francisco that failed to submit a winning bid for two homes during the first quarter of the year. It’s a sign that it’s not just investors that are entering the luxury home market. The couple in San Francisco had been saving for years and waiting to buy a luxury home when the time was right.
Many experts predict that the recent stall of the stock market could derail the positive momentum shift the luxury home market has experienced thus far this year. The article makes an interesting point that most consumers and their decisions in the luxury housing market are not driven by employment trends like other markets but by how well the stock market is performing and the Gulf oil spill has caused anxiety across all markets including luxury. We had a great first quarter and many believe this caused a sense of security among the wealthy. It’s a feeling that can quickly change if the market doesn’t see a strong recovery. If that were to happen, we would certainty see some very different numbers for the rest of the year.
Marketers Using Social Media For Lead Generation
Posted by Sibet B Freides in Marketing, Social Media on June 15th, 2010
According to a recent E-Marketer blog post, social media is the top emerging channel for lead generation among technology marketers surveyed last month.
Lead generation has always been a high priority for marketers but recently it’s become increasingly important through social networks. In fact, 66% of the respondents in E-Marketer’s survey say that it’s their first priority where only 17% say brand awareness is their top priority.
Emarketer.com
The majority of marketing professional engage in social media in hopes of increasing lead generation. One of the greatest challenges of lead generation on any platform is creating leads that are actually qualified, which is obviously a major concern of real estate companies and marketers. We often use demographics and geography to determine the quality of our leads.
Unqualified leads are something that cannot be avoided but I think social media can really help marketers in the evaluation process of new leads. Online profiles are becoming more and more prevalent and marketers should be utilizing this public information to better understand their leads and determine their qualification.
It’s also interesting to think about the possibilities of nurturing those leads that are not ready to take action yet. A qualified lead may not be ready to buy but you can still indirectly stay within their communication channels through social media. This is a great way to stay in their visual with out annoying them with phone calls and mailers. Every now and then you can pop up on their Twitter or Facebook feed and maybe one day they will be ready to buy. You’ll have a head start in their search because they already know about you.
Green Roofing On The Rise In Major US Cities
Posted by Sibet B Freides in Green on June 11th, 2010
According to a Builderonline.com article, a recent survey conducted by Green Roofs for Healthy Cities of its corporate members indicate that the green roofing industry grew by 16.1% in 2009. This correlates with the numerous reports of a thriving market focused on sustainability. While most home markets struggled in the last two years, communities that focused on green practices performed much better.
A green roof is one that consists of layers of vegetation including soil and then some type of vegetation planted. The benefits of these roofs are numerous and include insulation and energy efficiency. They also help society as a whole by producing clean air and reducing stress on the sewer system through storm water retention.
Green roofs are becoming very popular when it comes to new construction and the retrofitting of old buildings. Chicago is the US leader in green roof installation and has made a strong commitment to their implementation back in the early 2000s.
The City Hall building in Chicago was fitted with green roofs and recorded summer temperatures 14 to 44 degrees cooler than a county office building just across the street. This is a significant decrease in temperature and many believe it could drastically reduce energy costs for buildings.
Green roofs are something that I think will become more popular over time. The energy benefits are outstanding and the idea of turning these green roofs into rooftop gardens could be very appealing to commercial real estate. This all promotes a healthy and sustainable lifestyle and I think we will be seeing it adopted on a large scale in multi-family living projects.
Below is a list of the top 10 cities for Green Roofs:
1. Chicago, IL
2. Washington, DC
3. Minneapolis, MN
4. Baltimore, MD
5. Newtown Square, PA
6. New York, NY
7. Redmond, WA
8. Montreal, Quebec (Canada)
9. Quebec City, Quebec (Canada)
10. Milwaukee, WI
Mobile Websites A Must For The Future
Posted by Sibet B Freides in Marketing, Real Estate Sales on June 10th, 2010
How important is it that your website be optimized for mobile phones? It is extremely important according to a BuilderOnline.com article.
Many home buyers will utilize their mobile phones in their search so it is becoming increasingly important that real estate websites cater to this change. With iPhones dominating the smart phone market and the increasing number of real estate apps, builders and developers need to understand that home buyers may never look at your website from a personal computer. This means that if your site isn’t optimized for mobile phones you could be missing out on active buyers.
Imagine a home buyer that drives by your property and goes to your website seeking more information with their mobile phone. If they can’t view your website on their phone, then there is a chance that they may never see your community. They could simply forget about it. The bottom line is that consumers are increasingly using their mobile phones as a means of information. This could be information on homes for sale or any other product. This is a trend that shows no slowing and I hesitate to even call it a trend. It’s the future of the Internet.
My advice to those looking to create a mobile website is to keep it simple. Stick to the facts and provide some large images. Avoid Flash when building these websites. It takes too much time and the iPhone still isn’t able to read Flash programs and probably never will due to recent announcements.
The next generation of home buyers will expect real estate websites to be accessible from mobile phones. Consider it. The future is here.
Del Webb Hits The Mark With All Age Communities
Posted by Sibet B Freides in General, Marketing, Real Estate Trends on June 8th, 2010
Fireside at Norterra
Del Webb is no doubt the leader in the development of 55+ communities and now they have hit the mark again with all-age communities. In fact, some would argue that they were the first to really take the idea and run with it. The result was a gorgeous community promoting an active lifestyle that appeals to a wide array of ages. Both Fireside communities are designed to offer an impressive recreational center that acts as the hub for community. Countless activities are offered that cater to all ages. This is what the future looks like.
What makes these Del Webb communities so great is there attention to current marketing trends and developing their products accordingly. It’s becoming more and more understood that most families are looking for multi-generational living situations. Whether it’s because of financial strain from family members or the desire to stay close to family, there is high demand for multi-generational homeplans. Homes vary from low-maintenance to estate sized in the Fireside communities. Each one smartly serves a different generation of a family.
Del Webb has taken the idea of multi-generational homeplans to the next level by developing up-scale multi-generational community plans. You have to give them credit. Just last week I read an article talking about 55+ communities lowering their age restrictions to fill units. Del Webb was ahead of the game in two ways. They understood that a luxury 55+ community would struggle in the current market. They also understood that consumers are looking for multi-generational living situations. Now that their Desert Ridge and Norterra communities are completed, I think we have the case study for how developers will be planning their future projects. I would mention the awards and accolades that these Fireside communities have won for their sustainable design and architecture, but that deserves a blog of its own.
The Benefits Of Planning Events On Social Networks
Posted by Sibet B Freides in Marketing, Real Estate Trends, Social Media on June 7th, 2010
Real Estate is a business built on relationships and this is why so many think that social networking is the perfect fit for the industry. I agree with the notion that the relationships we form on social networks are beneficial but in order to be profitable they usually need to go beyond the social space. This is where Twitter and other social networking events come into play.
Tweet Ups or other events that are initially started on social networks represent how online relationships can turn into real life ones without much effort. It didn’t take users long to realize that as powerful of a communication tool Twitter was, its was also a great way to gather people in person. This is when Twitter became useful for business networking. That’s not to say that online relationships can’t be beneficial. I still think that face-to-face is more powerful, especially when you have a prior social media relationship. I think that this is one of the strongest types of networking.
This is how so many businesses, including real estate ones, are leveraging social networking planned events to create strong bonds. By creating online relationships you are planting a seed for growth. When you are able to associate a face or real-life experience with a social networking relationship, its strength multiplies and the odds of doing business or making a sale increase.
Having events planned and organized via social networks are beneficial for other reasons. During the planning and advertising, information will leak to others that you might not be in contact with. This will help spread the word. You might also be surprised at how many people are willing to help you with your event. A catering company that you may not have considered may volunteer to provide food for your event. Making your events public on social networks can be very beneficial for multiple reasons. I recommend starting with a strong plan. Why are you hosting the event and who is it for? What are your goals for the event? We need marketing goals to determine the success of our efforts. Social networking events are no different.
