Archive for the ‘Sales’ Category
How New Homes Can Overcome The Foreclosure Market
Posted by Sibet B Freides in Real Estate Economics, Real Estate Trends, Sales 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.
Finding The Sweet Spot In The Luxury Market
Posted by Sibet B Freides in Green, Marketing, Real Estate Trends, Sales 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 Trends, Sales 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.
Striking A Balance Of Classical Architecture And Sustainable Design
Posted by Sibet B Freides in Green, Real Estate Trends, Sales on July 30th, 2010
It might surprise you that there are a lot of LEED and Earthcraft certified homes out there that manage to encompass traditional architectural elements. In fact, experts say that the classical architecture of some Southern homes is as green as it gets. Where most would consider the big wrap-around porches and tall shutters of classic Southern architecture to be aesthetically pleasing, the truth is that these features were designed to enable passive heating and cooling without mechanical help.
Developers, architects, and builders are building homes that are not only sustainable environmentally but also with floorplans that provide comfort and utility suiting consumers in multiple life stages.
A recent Builderonline.com article talks about a project in Washington, D.C. that has successfully designed and built a product that has earned a LEED for homes certification and has also established a strong architectural similarity with the historic Capitol Hill district nearby.
The goal of homebuilders now is to strike a successful balance between energy efficiency and classical design, resulting in a more sustainable product. Up until recently we have seen LEED and Earthcraft certified homes incorporating very contemporary designs. These home designs also aggressively showcase the sustainable features incorporated. These new homes in Washington, D.C. do the opposite. They tastefully mask their sustainable features allowing more classical and sustainable aesthetics to shine.
If builders are able to successfully strike the balance of sustainability and age-proof design we are going to see a lot of meaningful and efficient communities in the future. It’s going to be interesting to see how far the modern designs can go in comparison to the more traditional ones that still successfully incorporate energy efficient features.
Conflicting Opinions On A Future House Shortage
Posted by Sibet B Freides in Real Estate Economics, Real Estate Trends, Sales on July 28th, 2010
There are many opinions on the topic of a possible housing shortage in America. One side thinks that with so many foreclosures sitting right under the surface we are about to have a major increase of REO homes coming to light. Others, mostly economists, think that a major lack of construction activity over the last two years will ultimately lead to a housing shortage. While both of these perspectives are probably right in some way, I think it all depends on how you look at it.
Is the market going to be flooded with older home including REO ones? It probably will be according to recent reports. On the other hand, the market for newly built homes will probably experience a shortage so those buyers wanting to buy new may have a harder time finding what they want. All of this of course depends on the market itself. According to a Smartmoney.com article, certain regions or cities will experience a shortage of flooding differently than others. Cities like Las Vegas, Phoenix, and Miami are overbuilt so a home shortage in those areas is not likely. States like Washington, Oregon, and Utah will probably experience a shortage sometime in 2012. These locations actually have a balanced supply and demand, which makes experts think that these markets may become under supplied.
In the end, I think it really depends on what regions you are analyzing. We are going to see recovery vary in different locations based on conditions before the crash and current ones. There will however be a noticeable shortage of newly built homes throughout the country. Builders have certainly been on hiatus the last two years and I would think we would definitely see a shortage there may be a boom in new home construction.
Can The iPad Help You Sell Homes?
Posted by Sibet B Freides in Marketing, Real Estate Trends, Sales on July 12th, 2010
The on-the-go work schedule of a Realtor is one that can be amazingly efficient or obviously unorganized. If you have ever been through the buying or selling process with an agent, you know that it doesn’t take long to figure out if the agent is organized. Unfortunately, it’s a lot easier to tell how unorganized an agent is as this will soon cause frustration.
I recently read an interesting article about how the Apple iPad and Realtors were made for one another. After reading the article, I am pretty convinced that these tablets can be used as a strong selling tool for agents. While the article referred to independent agents, I think that the same principles can be applied to a sales team in master planned communities or condos.
For example, sales agents will be asked a lot of questions about the local area including, schools, shops, and even crime rates. Having a device such as an iPad on hand will help answer these questions convincingly. A visual answer is always better than just a verbal one and having questions to concerns pre-organized on a device will go a long way with potential buyers. I also like the idea of giving the iPad to the potential buyer and letting them scroll through property information. A good example would be creating a slideshow with seasonal pictures of the community. By doing this, you are creating an experience.
Incorporating devices like the iPad into your sales strategy will help agents be better organized and will allow them to better display the features of a community. Devices like these are becoming more and more prevalent in daily use and we will continue to figure out ways to make them work for different purposes. It is obvious to me that the iPad could greatly benefit those involved with real estate sales.
Luxury Housing Market Showing Positive Signs
Posted by Sibet B Freides in Marketing, Real Estate Economics, 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.
Mobile Websites A Must For The Future
Posted by Sibet B Freides in Marketing, 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.
Is Generation Y Our Savior?
Posted by Sibet B Freides in Marketing, Real Estate Trends, Sales on May 7th, 2010
A recent Builderonline.com article asks the question, “Can Gen Y Save Home Building?” The answer to this question may not be as cut and dry as some would think. The answer also depends on what kind of homes your talking about.
Generation Y is no doubt a powerful group. As the article notes, this group took down the music industry and put our current president in office. Their influence and buying power rival that of the baby boomers and most of these eco-boomers are about to be new-home buyers. This sounds like an industry stimulate but experts are hesitant to rejoice.
It’s not a question of will but one of ability. The post recession world will be a limiting place for Generation Y. A large number have been unemployed and others have seen their down payment help from mom and dad vanish. Another interesting thing to think about are the lingering baby boomers that are postponing retirement. The recession has caused most boomers to delay retirement keeping them in the workplace longer. Not only have we seen minimal employment opportunities for Gen Y but because baby boomers are delaying retirement, job turn over is at a low.
Researchers have done plenty of studies on Generation Y because they understand the market power they have. These consumers are tech savvy, eco-minded, diverse, urban, and social minded. All of these characteristics will play into their housing choices. This article brings up a good question though. Should we be building to suit just the needs of Gen Y today? How sustainable is this?
In the end price and need will play a more important role in the buying process. Gen Y will soon have kids. Will we see them move towards the suburbs once their kids enter school? This plays an important role in the home buying process and most cities don’t have good public schools. It will be interesting to see how this generation handles growth.
Putting The Digital Marketing Pieces Together
Posted by Sibet B Freides in Marketing, Sales on May 4th, 2010
Builderonline.com has a great article titled “10 Ways For Builders to Improve Their Online Marketing Efforts”. I suggest you check it out. It has a great list and serves as a good example of how to put it all together.
I found this article particularly refreshing for a couple of reasons. I am glad that Alison Rice, the article’s author, addressed the doubts regarding digital marketing and in particular social media. She didn’t present it as the industry savior like some and she didn’t throw it under the bus. She explains its benefits but also warns not to totally depend on it.
Making your company’s website the best it can be is solid advice. It sounds simplistic and you might be thinking that this is common practice but it’s not. With the rise of social media some companies are thinking that the attention to their websites can decrease because all web activity is the same. This isn’t true. Your website is “home base”. Social media efforts should be leading consumers to your site where in part can be completely about you and what you have to sell.
If this same approach is taken in social media, the results will be anything but favorable. Like the article says, social media “isn’t just about selling your product; it’s about being relevant”. You have to give before you get. If you do this, consumers will trust you and understand your worth. Then you can present them with what you are selling. This could be a link to your website, a visit, or a conversation.
This article also talks about pay per click ads, Google, SEO, and message adaptation. It really puts the digital marketing pieces together well. It’s a good refresher for those of you who have been in the business for a while and some good advice for new comers.
