Property Marketing

Sincere thanks to my buddy, Joe Ferrara for bringing a new study from Michigan State University  into the real estate space for the rest of us to gnaw on.  It meshes with an article I wrote over a year ago on tailoring your workstyle to fit Gen and Y when trying to help them buy or sell a house.  They – Gen X and Y are quite different from Boomers, and the next generation – the Millennials are different again!  For now, let’s take a top-down look at consumers in general. 

MSU researchers have identified the 4 most important desires of today’s consumer when making a buying decision.

“Consumers say they want a “total experience”  - the totality involves these 4 factors, in this order of importance:

1.  Benefit (what’s in it for me?)

2.  Convenience (easy and readily available)

3.  Price (both the dollar amount and cost in terms of time – time is money).

4.  Environment (does the shopping environment – online or offline – stimulate, entertain, motivate a consumer to buy)”

Although the study was done on the hotel industry, there are obvious correlations for other businesses.  As a researcher said “Consumers’ desire for the total experience does not change in a recession… although they may modify one or more of the factors”.

When preparing a property for sale sellers (and their realtors) need to keep these factors in mind.

Benefit:  Does the home clearly illustrate the opportunity it presents?  Does it look like it’s a great value?

Convenience:  Can the buyers get in to see the home at a moment’s notice?  Is the place easy to show?  How much warning do the sellers have to have and what about that dog?

Price: Back to value – does the home look like it’s worth the money it’s asking?

Environment:  What is the Walkscore of the property?  How much fun is the house to explore?  Are there cool things to look at and imagine how they’d fit for you as you walk around the place?  How motivated are viewers — i.e.  back to value – is it priced well, so well that it apears to be such a great value it won’t last….

Hmmm, back to value, again, do you notice?

Bottom line, today more than ever, is this notion of value.  A property for sale must, must, MUST be priced and presented so that the value is OBVIOUS!

We know that most buyers want to “move in on Friday, unpack on Saturday, and go to work on Monday”.  This is why new construction always trumps “pre-owned”.  

I wrote an article a year ago about competing against new construction.  You’re welcome to read the whole thing  However, I believe the key points were - 

1. Mint Condition 
2. Updated Lighting (Recessed lighting, and halogen make such a difference to the feeling of a home)
3. Warranty (so, try Certified Pre-owned, works for the car people)
4. Layout designed for the Modern Lifestyle (Family Rooms off the kitchen, smaller Living rooms, bigger Master Bedrooms since the 2 people who are paying for the home have to share a room.)
5. The Smell of New Construction (not bottled yet, but so tempting – cedar, oil, paint as opposed to dust,mold, perspiration, rotting food, odd recipes that were likely ill-advised at best! etc.)
6. Special Spaces (an office, a den, a wrapping room – often new homes have quirky areas that are ideal for our more regimented, overly scheduled lives today.)
7. The Green Card (energy saving appliances, windows, etc.)

Of all of these, lighting and smell rank the highest for me in terms of what can be done inexpensively for H-U-G-E impact!  Smell or scent is so important in the selling of a property – home buying may look like it’s about numbers but when it comes right down to it, it’s the emotional pull that causes a particular property to be the one that’s chosen.  When thinking about emotions – the 5 senses come into play.  Smell being one of the more obvious ones at play.

There are lots of options to change the various aromas of your house: from cleaning the carpets, the curtains and upholstery to relocating the pets and plugging in an anti-allergen odor diffuser.  I love the essential oils that are used in aromatherapy, and they do create a luxurious feel but one needs to be careful that it’s a universally appealing aroma as opposed to something pungent and distinctive.  (My husband hates cinnamon for example, whereas my girlfriend, Karen, links orange with strong cleaning products and won’t tolerate it.  So be careful!)

As to lighting ~ a brightly lit home feels so much more cheerful and alive than one with no overhead fixtures and a few hardworking dreary 60 watt bulbs on standard lamps on the corners.  Gloomy = depressing.  I can’t emphasize how important this is.

And do we have to go over the Mint Condition thing again?  Want people to back bid during Inspections?  Fix stuff so you can go to market with confidence and walk tall!