Marketing real estate is a very expensive undertaking. Often times, property owners settle for less just to keep their budgets in control. In extreme situations, they withdraw their property from the market altogether. Here is what could be missing in your marketing campaign.
Traditionally, real estate is marketed through colourful flyers, brochures, newspapers and property magazines and the internet. The sizes of billboard on site and major roads in the cities are growing bigger and bigger. Television adverts are equally on the rise. It is not rear to find adverts with inscription; 90% sold. The more interesting bit is that while the budget for marketing real estate keeps going up, the number of sales being closed keeps going down.
Real estate is a complex commodity in an imperfect market. What do I mean? It is complex in the sense that usually the buyer does not understand it well. He has not tried it to know whether it fits well or not. Real estate market is imperfect in the sense that all necessary information to enable the buyer to make an informed decision is usually scarce. Hence, it is here that the sale is made. It is made by breaking down the complexity of the real estate and trying to perfecting the imperfect market. Look at these two cases of marketing real estate.
An office block was being sold in smaller office suites. It had been tossed from one agent to another due to very low responses that threatened its profitability. The turn-around came only when we analysed the project and demonstrated how a purchaser would make substantial gain in the long run if he secured a mortgage to buy an office suite than if he continued renting office space.
One developer putting up a multi-million residential project procured my services to carry out a market research and feasibility. The research informed the architect on the type of houses the market was willing to take up. With the designs in place, the client gathered prospective buyers in a boardroom. Through Power Point presentation the architect candidly presented the designs and I poured out the market findings. Nothing was left out. At the end of the presentation, and to my amazement, 70% of the units were booked within 10 minutes. Ground breaking ceremony was carried out two months later.
In summary, when marketing real estate, provide a product for the market and provide all necessary information, positive and negative. This way of marketing real estate builds trust; a conducive environment to close a deal.