Archive for August, 2010
What Are Your Social Media Fans Worth
Posted by Sibet B Freides in Marketing, Social Media on August 31st, 2010
There is an on-going debate right now between marketers and advertisers desperately trying to quantify the value of social media marketing. There have been several proposed models but each one seems to have their weak spots. It might make you wonder if it’s even possible to really go beyond your fan and follower numbers but most professionals use these as the measuring stick.
A recent article on The Next Web discusses two different theories on how to judge the value of Facebook fans. It’s a very interesting article for those wondering what their fans are worth. In the end, it may just be impossible to really tell how valuable a fan is or maybe it’s impossible to apply a universal method of finding their value. The argument that social media fans and followers are not as valuable as traditional media viewer is hard to accept. All one must really do is think about the terms in which the audience receives the message. Social media delivers a message to someone because they have opted-in to receive that message. Television commercials and billboards are still interrupters. They are forced interactions. I believe, along with many others, that this is indisputable when it comes to arguing value.
The problem with this argument in the eyes of the social media naysayers is that there is no way to determine why someone becomes a fan of anything on Facebook. The truth is that fans and followers should be judged on individual accounts. Unfortunately, this makes it almost impossible to put an overall value on your entire fan base which is why a lot of marketers don’t care for social media.
The big difference between social media fans and a commercial viewer has to do with potential. A social media fan is more likely to spread your message than a commercial viewer for two reasons. The first being that they have opted in and already associate themselves with your brand. The second being they are receiving your messages on a platform in which they are already participating. I’m not sure how marketers can argue against that.
How New Homes Can Overcome The Foreclosure Market
Posted by Sibet B Freides in Real Estate Economics, Real Estate Sales, Real Estate Trends on August 26th, 2010
In a market flooded with REO homes it is hard to convince a first time home buyer that buying a new home is the right choice. With so many discounts, it’s hard for buyers to really consider newly built homes. The good news for builders is that new homes can offer things that older ones just can’t.
I recently read an article titled “9 Reason to Choose a New Home Over a Resale” and it pointed out the distinct advantages of buying a new home. For builders and developers, these 9 points are the things that can win you the first time homebuyer who might be on the fence about buying new or getting a good deal on a foreclosure.
Most of the 9 points are nothing we haven’t seen before but its good to be reminded especially during this tough time. They include a reference to energy efficiency in regards to building envelopes and appliances that promote energy savings. It also mentions the customization options that most builders are giving buyers in today’s market. All of this added with better financing options make buying a new, energy efficient home pretty desirable.
Even though this article was written for buyers, as builders and marketers, we can use this information to understand what buyers will be looking for. Most of us understand what benefits buyers are looking for without reading this article but it’s important that these benefits are strongly communicated. We in the industry “get it” but does your consumer? Incorporating all of these incentives means nothing if buyers aren’t aware of them. There is little doubt that most developers know that energy efficiency and customization are big selling points in the new home market. Where everyone is coming up short is with his or her messages. All 9 points from this article can be incorporated into a cohesive marketing plan. Building these homes is not enough. We must be able to communicate these features in order to convince buyers that buying new in a troubled market is a solid investment.
What Do Social Media Users Really Want?
Posted by Sibet B Freides in Marketing, Real Estate Trends, Social Media on August 19th, 2010
If Internet addiction is real then I think it’s safe to say that social media addiction is too. After all, most of the Internet is heading towards being more collaborative and this is largely in part due to the rise of social networking.
The argument of whether or not social media is addictive is irrelevant in the end. Those looking for ways to advertise on such platforms care more about what social media users desire.
A Social Media Explorer article discusses social media addiction and includes some stats along with it. The better part of the article is the second question they attempt to answer, “What do social media users really want?”
The answer to this question is not a broad one but it’s actually specific to your product. Think about your consumers. Hopefully you have a pretty firm grasp on who and where they are. The “where” being social media. What social networks are they on? This is key in finding out what they truly want out of a social experience.
According to the article, the majority of social media users participate in order to obtain news. It’s hard to translate that into any sort of marketing strategy. It’s too broad. It does tell us that the majority of social media users create profiles in order to discover things. This of course includes housing.
The key is finding the right way to communicate with social media users. You have to act like them in a sense. You have to care about what they care about. If they care about community then you must show them community to get their attention. We are advertising on their turf and it’s important to remember that when we start planning.
Finding The Sweet Spot In The Luxury Market
Posted by Sibet B Freides in Green, Marketing, Real Estate Sales, Real Estate Trends on August 18th, 2010
Builders everywhere are trying to design new homes with the latest in sustainable technology while trying to maintain a high profit margin. There are several experts that see unstoppable reduction in profits for new homes. Most of them think that this is a change that builders need to start accepting for the future.
Builderonline.com has a great article featuring a builder, Bill Freeman. Freeman built a 3,000-square-foot house in Essex, Conn. with complete dedication to energy efficiency and savings. What he found out was that it’s difficult to build a large and luxurious home with a high HERS rating. He then called in a consultant who helped make a few minor tweaks to increase its rating. Tweaks along with his initial plans cost him more than usual, which will ultimately result in a lower profit margin.
The reality of the market is that striking a balance between profit and sustainability is a challenging task. In Freeman’s words, “A lot of builders don’t like hearing that, but it’s the reality now.” The challenge, especially in the luxury real estate market, is continuing to provide consumers with what they want while also obtaining high-energy efficiency scores and sustainability certifications.
All of this will certainly dictate how we market these types of homes. Just like new home designs, we must also strike a balance between luxury and sustainability in our messages. It is also important that sales agents are able to strike that balance when dealing with potential buyers.
As home building starts to pick up, everyone involved in the building and selling process needs to be on the same page when it comes to finding the sweet spot in the luxury market.
Are You Wasting Money On Your Developments?
Posted by Sibet B Freides in Green, Marketing, Real Estate Sales, Real Estate Trends on August 17th, 2010
Builderonline.com has a great article titled “50 Ways To Waste Your Money.” It’s on their website and in this month’s issue of builder magazine. If you haven’t read it yet, I suggest you do so here.
It’s a lengthy article but it’s worth a read in its entirety. I naturally enjoyed some of the more marketing and advertising focused tips. Here are a few of the ones that I really liked.
Don’t Train Your Salespeople To Explain The Value Of Energy Efficiency
I have talked about this before but when you build a sustainable home and obtain a certification for it, it might not matter if you don’t have the proper people selling it. How can an untrained sales person sell something they don’t know anything about? You better believe that buyers who are attracted to your product because of its Earthcraft certification are going to have some serious sustainability questions. Salespeople need to be able to talk the talk when it comes to selling sustainable homes.
Neglect Your Website
According to the article, a third of home buyers rely on the internet as their first step when searching for a new home and 94 percent of buyers use it as a tool to search refine their choices during the buying process. Knowing this, I am not sure why anyone would neglect their website to save money. A lot of developers also make the mistake of not updating their websites regularly. Webmasters may be expensive but I would avoid the temptation of cutting costs in this department.
View Technology As A Cure-All
A lot of us are excited about the advancements of the web and mobile devices. The article issues a sound warning to those who may be relying on technology to do old things more efficiently. Experts believe that these new technologies, especially mobile ones, should be used in new, effective ways to create sales and leads. If you rely on these new technologies to execute old strategies, we are selling ourselves short.
These of course, are just a few of the ones that I really like. There are 47 more that touch on building, marketing, consumer research, and design. It is a read that is well worth your time.
The New American Dream
Posted by Sibet B Freides in Demographics, Marketing, Real Estate Economics, Real Estate Trends on August 12th, 2010
Past government policies have always promoted home ownership. In fact, Herbert Hoover believed that owning a home in America could help combat the spell of Communism during the Red Scare. Owning a home has always been the American way of life or at the least the desirable way of life.
It seems that our financial turmoil and the still slumping housing market is drastically altering the American dream. According to government officials and real estate experts, renting is the logical answer for housing and economic recovery.
Not only is this considered the answer to our country’s real estate woes but it also seems to be the logical choice for Americans. Attitudes have changed over the past three years when it comes to owning a home and we are going to see a drastic increase in demand for rental properties. We have learned a valuable lesson in that not everyone needs to own a home. While some may consider this idea harsh, the truth is that the attitude of ownership for all is what got us in this mess in the first place.
It’s comforting to know that the market will eventually fix itself or at least it appears it will. Those homeowners who shouldn’t have owned in the first place are the ones who have more than likely been foreclosed on. This puts them into the rental market where they probably should have been to begin with.
I know this all sounds a little harsh but there is a lot of truth here. Everyone is entitled to own a home but that doesn’t mean everyone should unless it makes financial sense. There is a big difference in the two. When buyers take on mortgages that they can’t handle they’re hurting more than just themselves. The housing market crash has definitely taught us that. The good news is that these hard times have taught buyers, lenders, and government officials a valuable lesson in home ownership.
Prepare for the rise of the rental market.
How Big Can A Certified Sustainable House Be?
Posted by Sibet B Freides in General, Green, Marketing on August 11th, 2010
It’s an interesting question and one that certainly needs to be answered. According to the U.S Green Building Council’s LEED program, a large house can indeed be certified. This doesn’t mean that it goes without penalty of course. Any home over 1,900 square feet applying for a LEED certification will lose points. Is that it?
It is a compelling argument right now. Boyce Thompson has a pretty interesting article about it over on Builderonline.com. He clearly thinks that larger homes shouldn’t be certified but he also respects the counter arguments.
I am having trouble understanding how a home with several unused rooms can be considered sustainable. Isn’t this the complete opposite? Should water saving toilets and fixtures really help a mansion qualify for a sustainable certification? It seems there are mixed opinions and as Thompson states in his article, “The many competing standards in the marketplace make comparisons very difficult.” Since there is no set standard in certification, who wins the final argument on what is sustainable and what isn’t?
This can be confusing for consumers and builders. Until there is a set standard in sustainable certification I think things will continue to be confusing.
Will The Mobile Web Make Your Reall Estate Website Irrelevant?
Posted by Sibet B Freides in Marketing on August 10th, 2010
How relevant is my website in the era of the distributed web? This is a question that we are all asking ourselves. I recently read a great article touching on this topic here. I highly recommend you take a look at it.
It used to be that a website was all you really needed as far as Internet and digital advertising went. With the emergence of social networking and mobile technologies, the static website is becoming less relevant in today’s digital advertising channels.
Consumer purchases are driven by consumer reviews. This is what makes social media so powerful when it comes to sales. Unfortunately user reviews on your website don’t carry nearly the same amount of credibility as the ones on Facebook which makes establishing a presence there absolutely crucial.
Americans will continue to access the Internet via mobile devices in increasing numbers. This will only intensify as mobile technologies grow. This reason alone should convince you that your business needs a social media strategy. At the core of things, social media was meant to be mobile. Real time reviews are the future and they will all come from social networks.
When you do decide to formulate a social and mobile strategy you should always remember to choose your platforms based on your target audience. Facebook is usually the go to for starters but research may reveal another social network created specifically for your market. There are tons of specialized networks out there including ones for real estate, music, and even Scotch whisky drinkers. My point is that you shouldn’t assume Facebook is the one and only. It is the largest and odds are you will need to be there but there are other outlets that can help. You should avoid the common pitfall of jumping on every social network you know. This often leads to a waste of time and money.
Should we give up on our websites because of all of this? No, or not yet anyway. I think the static website still plays a major role and until we totally abandon personal computers they will continue to. It is however important that we configure our sites for mobile devices and make sure our digital marketing efforts are uniform. Each aspect should support the other in some way.
Look Beyond Square Footage
Posted by Sibet B Freides in Green, Marketing, Real Estate Trends on August 6th, 2010
A reduction in square footage in new homes shouldn’t be viewed as a bad thing. In fact, consumers are actually looking for homes that are smaller, include sustainable features, and are high customizable.
This doesn’t mean that builder should down scale their current floorplans, add Energy Star appliances, and give buyers a choice of finishes. Creating a smaller yet attractive floorplan is somewhat of an art. Lucky for us there is an article on Builderonline.com that hits on a few strategies when it comes to successfully downsizing floorplans. It turns out that it involves more than just removing a bedroom or a closet.
According to the article, creating an attractive floorplan less than 2,000 square feet involves strategically placing windows and adding character wherever possible. Buyers are still looking for a nice space to call home and a reduction in size makes the need for character more important than ever. Ideas include varying the heights of ceilings in different rooms which adds depth to the home’s design; placing windows at the end of hallways and including natural light are key aspects in design.
We can’t forget about the importance of high-end and customizable features within the home. Just because buyers are looking for smaller floorplans doesn’t mean they are skimping on the overall living experience. A compromise in space will surely mean an expectancy of nicer fixtures and details. This is especially true with Generation Y buyers.
Smaller homes are definitely in demand, which will continue to grow. Be sure to strategically plan your new homes by looking beyond a reduction in space and focus on an increase in character and customizable options.
How The Recession Is Shaping The Future Of Real Estate
Posted by Sibet B Freides in Green, Real Estate Economics, Real Estate Trends on August 5th, 2010
Many experts believe that the developing demographic trends we are currently seeing will drastically affect the demand for future rental properties. After reading a report on James Chung’s webinar its is hard to argue otherwise.
In his presentation, Chung reviewed several factors that will directly shape the market. Included is the expansive growth of the US population. In Chung’s words, the positive growth of a fully industrialized country is very positive for the real estate market outlook. The point is that market demand and its marketing will completely rely on this growth. As preferences shift so does the market.
While it’s a challenging task, it is a positive one. According to Chung, the economic climate that the boomers and Gen-Y face will directly shape the majority of demand for tomorrow’s market. This makes complete sense when you consider the shear numbers of these two generations. . Whatever economic hardships these generations face now will determine what builders will be focusing on in the future.
According to Chung, the direction we are heading leads to an increased demand in rental property. Reduced incomes will cause this increased demand for rental property.
The change in consumer attitudes towards health change is driving more than just healthcare but also where people want to live. Consumers will want sustainable and healthy homes. We all understand that people want sustainable homes for energy savings but we also need to remember that they will want them for health reasons.
On a positive note, Chung assured participants of the webinar that the change in the market will be a positive one as long as developers recognize the changes and differences. In his words, “As bad as the recession was, it has corrected the market and has presented a window for reinvention.”
