Post on 30-Mar-2015
The 2 keys to getting top dollar for your home…
Marketing
Competitive Positioning
“It’s competition for the best homes that set the price & determines the market time”
Competitive Positioning
People buy by comparison There’s always competition for the ‘best of show’ At any given time, in any given market, there’s a
‘ready, willing & able’ group of buyers ‘hovering’…waiting for that next best home to come on the market
Competitive positioning is the way to capture those ‘hovering’
The ‘hovering’ are part of the ‘early activity’, which is subsequently more robust & more motivated!
Competitive Positioning
This graph shows the relationship between activity & weeks on the market—we see the ‘hovering’ group of ‘ready, willing & able’ come early!
Research also shows that properties that sell more quickly generally net more
Competitive positioning, or the highest price obtainable, is achieved by understanding the market dynamics surrounding your property Similar homes that have recently closed
create a benchmark (‘Sold’ comps)
Similar homes ‘for sale’ on the market are the competition (‘Active’ comps)
Similar homes recently ‘off market’ show what didn’t work! (Expired comps)
Competitive Positioning
Additionally, 3 formulas are most helpful in competitive positioning: Absorption Rate (AR) = the number of like
properties selling every month Number of Month Supply = the number of
active properties divided by the AR Trading Range = selling price as % of asking
price
Competitive Positioning
Examples~ If 12 like homes have sold in the last 6 months the
Absorption Rate = 2 (12 homes / 6 months = 2) If there are currently 6 like homes on the market then
there is a theoretical 3 months supply of available inventory (2 selling per month x 3 months = 6 mo supply)
However if there are 18 homes on the market, with 2 selling per month, there is a 9 month supply!
Note: Generally speaking, a less than 6 month supply of homes is considered a ‘sellers market’; a more than 6 month supply may be considered a ‘buyers market’. Note: Higher-end luxury homes will often be the exception, where they may take longer to sell because of fewer qualified buyers in their price range.
Competitive Positioning
The power in the formulas is that they can help us competitively position with precision For example, if there is a 9 month supply of homes we
need to be sure we are positioned as the next best one… the ‘best of show’
On the other hand if there is less than a 6 month supply we may be able to be more aggressive in pricing, so long as we are positioned within the range of what is selling, that is, priced within the Trading Range
It is extremely important to avoid becoming ‘market worn’
Competitive Positioning
‘Market worn’~ Homes that are on the market much longer than the average days on the market (DOM) in any given price range and area may be considered market worn Research has shown & common sense dictates that
market worn homes will tend to net less, as buyers perceive them as less desirable, or at the very least, that something must be wrong—perceived value is compromised accordingly
Competitive Positioning
Conversely, the research shows that homes that sell more quickly tend to hold their price & thereby net sellers more (because of the early competition)
Again, “it’s competition for the best homes that set the price & determines the market time”
Competitive Positioning
To net top dollar, in the shortest amount of time, with the least hassles… our job is to competitively position your property as ‘the best of show’— the next best one on the market, taking everything into consideration
Competitive Positioning
Besides competitive positioning, the other major activity needed to achieve top dollar in the shortest amount of time is…
The broker community Equitable’s print advertising & web strategy Other marketing venues Exclusive luxury real estate affiliations Virtual tours Professional custom brochures Just Listed cards Eye-catching signage
Marketing
Warning!! No amount of marketing can compensate for improper positioning People ultimately buy by comparison—cars,
toasters, houses, spouses! Once competitively positioned, the marketing
(exposure) of your home involves a host of activities designed to bring qualified buyers to the table
Marketing
The most important marketing an agent can do is to the MLS broker community Brokers have the ‘ready, willing’ & able buyers 85%+ of residential real estate sales are
through the industry To attract agents with their buyers we use
professionally shot photography & professionally written copy (remarks section of the mls)
Marketing
Other marketing to brokers may include: Equitable company tour Local market-specific REALTOR tour(s) Open houses targeting agents Target mailing / email to agents active in our
market Broker’s Open events Networking within the industry
Marketing
”A fundamental change in approach or assumptions”
Marketing
eMarketing
There has been a fundamental shift in advertising from print to web 80%+ of buyers begin their search online (NAR Research)
24% of buyers now report they found the home they
purchased online—up from 11% 2 years ago (NAR Research)
The web allows buyers to do what they have always
done—explore their options, but now they can do it
anonymously and with a great deal of precision
The new trend in print advertising is to empower
potential customers by directing them to the web for
more information
The web allows us to reach customers where they live…
anywhere in the world
Equitable’s print & web strategies embrace this new
paradigm like no other firm
eMarketing
Truth be told, historically there has been a very low correspondence between advertising a home & finding a buyer for the home advertised Why?
When buyers respond to ads it’s typically early in their home search
In short, they are not ready
Marketing
Why advertise if it doesn’t work? Advertising does ‘capture’ buyers but… Buyers typically take from 6 months to up to 2
years to make their move Effective use of advertising allows us to
engage buyers & assist them in the process Through consistent advertising in our target
markets we assist buyers to become the ‘ready, willing & able’
So, advertising does in fact work…indirectly
Marketing
Building a better mousetrap! The typical home advertising publications are
not user friendly—try to find a home in a certain area and price range in your favorite local real estate magazine
Additionally, the typical broker website does not take advantage of the power of the medium to educate and explore
…and they aren’t much ‘fun’!
Marketing
Introducing the new eFineliving Magazine &
www.eFineliving.com eFineliving magazine targets our luxury-resort corridor Clearly upscale, while at the same time user friendly Seamlessly tied to the life-style driven eFineliving.com
website It’s fun…it’s ‘sticky’ (more time spent in the website)
Streaming videos of our communities eMatch
Matching buyers & sellers to agent specialists / experts Open House Live (coming soon)
Online ‘guided’ home search
Marketing
www.LuxuryRealEstate.com ~ The #1 luxury real estate website on the planet (Try it! Google ‘luxury real estate’)
Luxury Real Estate Regents = priority exposure Over 1100 affiliates national & international Over 65 countries Referral network
eMarketing
Virtual Tours Distributed…
MLS Realtor.com Google Yahoo & many more
(click to see)
Elegant professional brochures…
Just Listed post cards…
Eye-catching signage…