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Here are still more examples of how much advertising and marketing contributes more to the decline of the real estate market than people realize. Sorry to sound like a broken record, but the realty associations continue to put out statistics which do not have a positive impact. As sports fans can tell you, people can use certain statistics to make arguments for either side.Nashville TN provides us with still another example. The Greater Nashville Assn. of Realtors released their latest monthly market statistics earlier this week. Keep in mind that the realty agents in the area are the ones who combine to financially support the Association. Yet, these statistics show a drop in home sales in the area for the 2nd month in a row. The question should be asked. Why did the Association issue this information? The member agents don't benefit by current and potential sellers seeing that they have even less of a chance. I don't buy the argument that it encourages potential buyers to take advantage of all of the bargains out there. Instead, potential buyers from out of the area could think that the region has become less desireable. The Nashville Tennesseean, the major newspaper there, added to the negative spin of this information:http://www.tennessean.com/article/20111109/BUSINESS02/311090133/2047/BUSINESSYet, the local business publication took the SAME information, and put a slightly more positive spin on it:http://nashvillepost.com/news/2011/11/9/october_marks_four_months_of_home_sales_growthI'm sure that the Association intended their statistics to always have a positive spin such as the Post gave it. Come to think of it, the Post's article isn't totally positive either. It does show how two separate entities approached the same statistical information. Whether it should have been available to them or not.Yet, these two articles are not advertising or marketing pieces. That's my other discovery this week. It so happens that I use a mailbox store to receive a lot of my mail and also to receive packages during the day since I prefer not to have mail or packages left outside of my home. Of course, the junk mail also goes there, which is a good thing.Earlier this week, I received a mailer from a local mortgage broker. Since I'm in contact with 200 to 300 mortgage offices and banks most every week, I was curious to see their angle. To my amazement, this lender's "letter" told me that they could get me a better deal for my home located at (address), even quoting an estimated amount of my mortgage.What this mortgage broker didn't know is that the address in that mailer was for the mailbox place. There is no house at that address!Of course, my industry colleagues are getting a good laugh about this as I spread the word about this lender's carelessness. However, if I were not an advertising and marketing professional in the business, I might well have considered that mailer as one more shady operator and a reason not to deal with mortgage brokers. Especially if I had recently read about how my local realty association promotes that fewer and fewer homes are selling in my area.These realty agents and lenders seem to have nothing to talk about except for how awful the market is. Yet, next month is supposed to see the start of the Home Affordable Refinance Program. It could be huge break for the millions of home owners who are thousands of dollars underwater on their current mortgage, yet have made the payments and stayed faithful.I know because it could impact me personally. I'm already on 2 "waiting lists" to be contacted the minute the plan becomes available to me. I might add that neither of those lenders are my previous mortgage broker, since he didn't contact me about this yet. From my conversations with banks and brokers each week, I know that some are planning to administer this program, while some aren't certain and some say they will not.This HARP plan could save me and thousands of home owners thousands of dollars, and could very well keep numerous home owners from heading toward foreclosure over the years. This could be the most positive development in real estate in three years.Yet, I'm one of the few writing about it, while realty associations continue to pump out the "nobody is buying" statistics and lenders continue to think that every address is a home with a mortgage.Here's hoping that advertising, marketing, and news releases will appeal to 100% of the people next time around.
This is about to sound like I'm contradicting some past columns, but I don't think so.
Trulia.com web site has introduced statistical research designed to show that in many large cities it is "better" to buy a home than to rent.
http://info.trulia.com/index.php?s=43&item=123 Obviously, I'm in favor of ways to get homes to start selling at a much higher pace around the country. Yet, I don't think this is a way to accomplish this. For as much as I use statistics to make a point, to enhance my enjoyment of sports, and for a variety of reasons, I also understand that there are instances where statistics need to be better qualified to make the intended point(s). In this case, the "decision" of whether to buy or rent is not based on statistical reasoning. The plane is not equal. Fewer and fewer potential home buyers can qualify for a mortgage these days. Even fewer have sufficient funds for enough of a down payment to purchase and then secure a mortgage. Each time either or both of those situations occur, it takes away the "rent or buy" as an actual option. If they can't afford to buy, then renting becomes the only option. Many people already know that the current real estate market is a buyers' paradise. Yet, as our elementary school teachers would have told us in this sentence, the same market does not contain a paradise of buyers. What the statistics in the article fail to point out is that the majority of the people are not making the choice they are basing their information on. One of my suggested results actually reduces the distinction between renting and buying, and it would open up both avenues for years to come. I'll say it again. Make "Rent To Buy" a major part of our vocabulary. This is a drastic measure, but the state of real estate calls for it. Make homes currently in status as bank foreclosures available for rental only via annual (or longer) leases. The monthly "rent" payment could be used toward a purchase after 5 years if the renter so chooses. After 5 years, the bank would have been collecting the "rent" money and would know the reliability of the tenant. This, instead of sitting on an empty home not generating any revenue at all. If investors can't buy foreclosure properties at bargain prices, it instantly raises average home prices back toward the level of "real" sellers, instead of foreclosures pulling down the prices for everybody.And those who currently cannot get a mortgage and/or afford a down payment have instant options.Meanwhile, apartment buildings would then need more competitive rates for shorter term leases, which would likely help the rental market.My reason for suggesting the 5 year period before the tenant could then "buy" the home is significant. Again, those consumers who have no other options (or a choice) would be able to establish some equity without the hassle of a down payment and initial mortgage. Yet, those who do have the funds for a down payment and the credit background for a mortgage could then buy now at lower prices. It is possible that 5 years from now, those who buy now could be able to turn that profit by selling high.This situation can be created, and for everybody's benefit. But as of now, the 'rent' vs. 'buy' consideration is still not a choice. At least 80% of the time.
It's bad enough how many realty associations and industry organizations are adding fuel to the fire with the barrage of negative home sales statistics in this marketplace. Now comes word that this might become a credibility issue as well. A Southern California based real estate data firm, CoreLogic, has issued a report claiming that the National Association of Realtors appears to have overstated sales of existing homes by as much as 20% over the past five years. This puts a double whammy on the recent statistics. Many realty associations have been releasing data showing the drops in home sales with comparative statistics. These, of course, put the various local markets in a bad light. So if it indeed turns out that the earlier statistics (1 year ago, 2 years ago, etc.) were actually inflated, it means that home sales have been sluggish for even longer than these associations would have the public believe.Now this is close to becoming a credibility issue totally separate from such a struggling market. The NAR shouldn't have to utilize its resources for crisis management while the very market it serves is in a crisis. It has been too soon since the tragedy in Japan hit for us to realize how that is also another blow to the U.S. real estate market as well. Estimates are already coming that it will take upwards of five years to rebuild Japan. With the technology and innovations which have come from that country, I have to believe that international investors will be ready with funding to make sure it happens. That is funding which might otherwise be put into commercial properties and real estate related investing here in the U.S.On the other side, think back to the early 90's and the California real estate boom. That "boom" was brought on in part due to overseas investors paying above and beyond the asking prices for upscale and high end homes in both Northern and Southern California. For many Japanese investors, high end homes in California were then a bargain compared with home prices in Japan at that time, even at inflated prices here in the States.Now, especially with the incredible disaster facing Japan and the world, any such international activity in the United States is out of the question. Another blow to the U.S. market.As much as I dislike using negative statistics in this marketplace (although I'm not representing a realty association in doing so), this is already showing up.This past weekend, the Orange County Register (So. California) reported on the total sales for February 2011 as well as the first half of March for "luxury homes" (millions of dollars) in Newport Beach and Laguna Beach totaled: zero. After there were sales during January. If only the focus could turn to how to get properties sold, instead of what the statistics should show.
As I have said throughout the real estate crisis, advertising and marketing continues to play a significant role in turning the market around. Not only how much, but how.
Agents advertising their listings need to, more than ever, focus on who the most logical potential buyer is. I’m not talking about ethnicity or nationality, or anything else that cannot be included within an advertisement. It is where and how you advertise a listing that makes all the difference in today’s market.
If you are a buyer, or an agent fortunate enough to have a sincere buyer, consider their needs. When you have an individual or group which is investing, that is when you might look closely at “fixer-upper” listings. At least, any which are at the lowest of the low in terms of price for the area the property is in.
This way, an investor can be presented with two options. Point out that he/she/they can look at flipping the property in the near future if local price comparisons would work in their favor. Or, point out how by contracting certain improvements over the next few months could place the property in the caliber of a comparable “move-in condition” home in the same community.
For example, suppose you have a 3-bedroom fixer-upper reduced to $175,000. Your research shows a nearby 3-bedroom home in “move-in” condition listed at $188,000. Let the investor see what needs to be done in order to equal or “beat” the $188,000 home, and let the investor determine the approximate cost to make that happen. If there is a fit, the investor then has a direct reason to jump all over the $175,000 home.
Why only show the “fixer-upper” to investors? Frankly, too many agents pushing listings should know the answer but don’t.
With the huge amount of inventory out there, many agents overlook that buyers looking for a home for the family or even themselves don’t need to purchase a “fixer-upper” and spend and work themselves crazy to save a few thousand dollars anymore. They are finding ready-to-go homes that don’t need much work for right around the same price. Conditions have changed because of all of the lower priced homes out there in most communities. Families no longer have to buy the house without a floor but with cracked walls for less money in order to move in to the area they want. Chances are they can get a great price on a “ready to go” home that lets them spend Saturday afternoons at the movies instead of on their knees scrubbing.
Agents need to keep these factors in mind when trying to move their new listings. That includes advertising and marketing. Some buyers want the best place to move into and have it be functional. You should be able to point out that “for $5,000 more, you save the $10,000 worth of work and the hours of your labor to fix up the other property” to a family.
At the moment, the way to go is to think in terms of matchups. What fits best for the situation. In basketball, the best scorer on your favorite team doesn’t always match up against the opponent’s best scorer. It depends on which player is best equipped to defend. When it comes to a job opening, it isn’t always qualifications. It is often which candidate best fits in with others on the team that determines the hire. And in real estate, it now needs to be the buyer with the “best fit” for the seller. But first, it needs to be pointed out.
Now that I have shared this with my valued clients, I thought I'd share something for realty agents to share with some of their buyers and sellers. Especially those with teen children.
The deadline is coming up for applications for interns - at The White House. What does this have to do with Real Estate? Nothing.
What does this have to do with your appropriate buyers, sellers, and clients? It could a lot. In this (or, for that matter, ANY) real estate market, agents need to distinguish themselves. Not just sending out newsletters and reminders which have no bearing to the local market or what he/she is all about.
Suppose you have clients with children in high school. This is a reason to call or e-mail them and suggest that (names) apply for a White House internship. This shows your clients you are thinking of specifically them. They may pursue it, they may not. But chances are they'll tell others about what you did for them.
Once you get their attention, send them this link:
http://www.whitehouse.gov/about/internships?goback=%2Egde_3571887_member_45547363 Of course, I suggest to my advertising and marketing clients that they follow back in a few weeks to ask if (name of child or children) applied. Maybe they received a response from someone at the White House! Trust me. You'll get a more favorable reaction than if you called them to ask about local home prices.
One of my media coaching clients a few years ago had mentioned to me how much he enjoyed walking and how his dog was more or less conditioned to walk a couple of miles with him each day for exercise. Of course, I asked where he would do this and he told me how he would drive the dog over to a big park less than 5 minutes away. Which prompted me to ask him when he sold real estate.
He didn’t get the connection. I asked him why he wouldn’t walk the dog around the neighborhood and meet the other dog owners nearby in the process, and he didn’t know. I told him that’s why he had hired me. Having the training to address a group of people with confidence also applies in one-on-one situations.
His dog-walking time was taking away from his real estate time when it didn’t have to be. At least he was a very good listener, and that’s not something that can be taught.
Starting the very next afternoon, he began daily extensive walks within the square mile area surrounding his own house, which happened to be part of his farm area. He began to notice which houses had the dog houses, “Beware of Dog” signs, and/or the sounds of barking when he walked by. Over the course of the first three weeks, he was able to develop a route to “just happen” to walk his dog by many of the houses owned by dog owners.
Naturally, he got a few opportunities to say hello and meet some of his fellow “neighbor” dog owners. These other dog owners realized his consistent walking of his dog on a regular basis, and they became more familiar with him. After a few casual greetings with them, he would take the chance to mention that he handles real estate within the community and loves to work with dog owners because he so clearly understands their needs and requirements to find a suitable home. He would, of course, have business cards with him during his walks and gradually passed them out to neighborhood dog owners.
Even though his business cards said nothing about dogs, he soon got a referral and was successful at finding an ideal fit for a family with two large dogs and brought them into the neighborhood. Other deals followed over the next couple of years.
There was no extra cost for his marketing campaign. In fact, it didn’t even take any more time out of his daily routine. All it took was knowing how to create and follow up in a marketing situation. So if you still think the real estate market is going to the dogs, then take yours for a walk where it counts.
http://www.RealEstateMediaCoaching.com
I'd be the last person to defend a big bank, but this week's news brought out one instance where I need to do that. (Sorry, but I still contend that instead of the government handing out millions to the banks that screwed up the economy, they should have only repaid as many of the defaulted loans as possible.)Again, the city of Baltimore filed a lawsuit against Wells Fargo, as if one bank had something to do with parts of Baltimore still being as dumpy and depressing as they were 25 years ago:
http://www.mortgageorb.com/e107_plugins/content/content.php?content.6671 Instead of spending money on cleanup and development efforts, the city chooses to pay a law firm to file these lawsuits so they can be thrown out.This leads to another way to help with the banking crisis around the country. Let's ask all of the banks serving Baltimore to only lend on properties located in other cities and towns. Baltimore officials won't mind. If there are no commerical or residential loans within the city limits over the next few years, the city won't have any reason to sue any of the banks!
For as much time as I spend on behalf of clients with regard to the advertising and marketing of specific properties, I still continue to advise them that branding remains an important ingredient to success in terms of real estate sales.
I have encountered some agents with the national brand name real estate companies who haven’t found it necessary to do as much branding as they should, thinking that the institutional advertising out there would attract more potential buyers and sellers to them based solely on their farm area. Finally, the evidence that this is not a good approach is starting to appear.
http://www.deloitte.com/us/americanpantrystudy
The research found via the above link provides proof that more and more consumers are receptive to “store brands” or “house brands” for their purchases. Granted, this is often due to the current state of the economy, and is for much smaller purchases than property. Yet, the trend is there. Obviously, real estate is also a changed industry because of the same economy. I have seen the complete details of this study and it shows a distinct increase in the percentage of consumers who now look at and purchase “house brands” instead of brand names.
While this is happening, I have more and more “brand name” real estate agents and mortgage lenders telling me they don’t see the need to increase their branding and advertising in today’s market.
I’m here to tell you that those agents, brokers, and lenders who know to spread the word will benefit much more and much faster than those sitting on their hands. Your decision to decrease your advertising and marketing budget is also a decision to increase the advertising and marketing of your more aggressive competititors.
In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
177 Morris Ave., Providence R I - 5 + 2 1/2 $599,000
http://projo.sawbuck.com/property/Providence_Metro/Providence/Blackstone/3389685-177-Morris-Avenue
This listing advertisement was randomly selected (as these all are) yet makes for a very interesting study. The photo spread is among the very best I have ever seen, while the description copy leaves a lot to be desired.
Although the primary photo is the only one of the exterior, it is taken from an excellent angle which makes the home show very well. However, it also clearly shows trees with no leaves. Not exactly a reflection of the July day on which I found this ad. (The largest newspaper in town's online site, on which this ad still appears as of press time, also shows that this home has been for sale 113 days as of this writing.)
On a separate note, I understand that the realty agents have little to no control over advertising sources which continue to show the number of days or period of time a property has been for sale. However, I don't understand why they, as advertisers, do not take a stand to have that information removed. Showing how many days creates a negative impression of "this house hasn't sold yet so there must be a problem with it" to a potential buyer.
Those who are impressed with the primary photo and click on the "additional photos" link get a wonderful full page with a 12 photo spread, including most of them being interior shots. Every photo in the spread features a different area of the interior. Even if some of the current colors may look a bit loud for some tastes, these photos display a wonderful feel for this home and do not duplicate. It is clearly the quality of the photos as much of the quantity. (Having 12 photos doesn't mean much if 4 of them are the same room from different angles - not the case here.)
However, after the wonderful buildup with impressive photos, the description copy quickly kills the momentum the listing agent had built up.
A family seeking a 5-bedroom home is not likely to be as concerned with the age of the home nearly as much as the features and appearance. In this instance, starting the copy with "Elegant 1927 Tudor with charming period details" is insane. Frankly, it might as well have read "This is really an old house so be aware" instead.
While the remainder of the description copy is somewhat more focused, it also ends on a lesser note than what it could be. I don't know for sure what an "Integral garage" is, and the closing "great opportunity" is what I call Realtor fluff since it tells me nothing. This copy might fit if it were a $150,000 home in a middle income area, but not for a half million dollar plus property.
What a difference it would make to update the primary photo to include the greenery and to create a realistic description copy befitting this home.
GRADE: C
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
Oak Lane, Hampton Bays NY 3 + 2 $1,500,000
http://newsday.optimumhomes.com/homes/listing/2112752-2274273/Hampton-Bays-NY-USA/2-beds/2-baths/SINGLE-FAMILY-type/1000000-1500000-price/80-H0150311--2112752-2274273--80-H44129--80-2279145--80-H0157167--80-H0147535--80-2262834--80-H0111249--80-H35324--80-2261484--80-H37338--80-H46210--80-H28332--80-2258219--80-H50633-ls/20-t/CodeFeatured,0,,Price_Sales,1-ns
My first reaction to seeing this advertisement was "What was the seller thinking?". A home listed at $1.5 million, with less than two lines of description copy?
Not only that. The photo spread also leaves a lot to be desired. I found this advertisement by seeking out the leading newspaper in the area's web site in the middle of June. Yet, the primary photo has trees with no leaves coming in to the photo from two sides. One would think that, especially for a 7-figure property, the agent would have the common sense to update the photos.
The second photo looks across a small waterway. However, there is no description copy to tell a potential buyer whether or not the house on the other side of the water is the one that is advertised, OR if this is a view from the back of the home for sale. Considering that what little description copy there is indicates there is a "private beach", this photo is probably more of a negative than a plus.
Plenty of solid interior photos help to "save" the photo spread from total disaster. However, without captions or even an adequate description, we have no idea what is upstairs or downstairs, and whether or not there is a basement, or any idea of the quality of the bathrooms.
There is no information about the size of the house, number of rooms, or parking. There is nothing about a garage, if there is one. As if this isn't embarassing enough, at the very top of the ad (above the outdated primary photo), the square footage indicates "0". Nowhere in the remainder of this ad is that even addressed.
Meanwhile, the exact street address of this home does not appear within this ad, nor does it appear on the real estate office's web site. One can't even drive by to try and get an idea of the size and scope of the home.
To top it all off, the mere almost 2 lines of description copy end with "Truly A Must See!!". Gee, thanks.
GRADE: D-
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
5183 West Pea Ridge Rd., Huntington WV, $194,000 4 + 3
http://hdhomes.trulia.com/property/1048600908-5183-W-Pea-Ridge-Rd-Huntington-WV-25705
The seller of this house should be extremely disappointed with this agent. For that matter so should other agents. No wonder this property has been on the market for more than 6 months. It must be a one-year listing and the seller is stuck.
I actually chose this one to review because the online advertisement through the Herald-Dispatch (the area's leading newspaper) listing indicated there are 28 photos. My expectations were for a motivated seller and an advertisement overloaded with information, descriptions, and photos to die for.
Not here. After a couple of exterior photos make the house look very appealing, the interior photos show us that the house is practically empty. Some are taken from poor angles. Rooms without furniture do not allow a potential buyer to envision what their furniture might look like, or get an idea of the scope and depth of a room. In addition, a couple of the photos have items left laying around. It reflects that the photographer wouldn't take 30 seconds to move a few items over for the sake of a photo. Not acceptable if I was the seller. Or the manager of that agent.
Yet, it gets worse.
The description copy, which is supposed to provide selling point after selling point, reads "Large updated home, main bedroom suite, lots of amenities". And nothing else. We don't even know what is "updated".
What we do know is that it has been on the market for a long time, is empty and countless people could have been inside to know security secrets. Nothing about the community, whether or not there is a garage or parking, or any reasons for a potential buyer to want more information.
At least six months ago somebody whipped through with a camera and took a ton of photos, and they are probably all on the spread without reviewing each. Then one sentence was typed in for the ad copy. And so it sits.
I think it will sit there until this listing expires through this agent and the seller wises up.
What hurts even more is that with using a few of the existing pictures (and taking out the bad ones) and adding even a mid-level description, this home could easily be attractive to potential buyers.
GRADE: F
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
227 Rue Petit Bois, Biloxi MS 3 + 2 $249,999
http://www.homefinder.com/MS/Biloxi/60147845d_227_Rue_Petit_Bois
There is only one photo in this advertisement and it leads to a mixed reaction upon first glance. The house itself looks to be solid, well built, newer, and large, which is a positive. We can clearly see that there is an attached garage, also a positive in this warm climate environment. However, we have a car and a van in the driveway, a less-than-spectacular looking lawn, and what appears to be an empty house inside.
The description copy is also a mixed bag. Terms such as “amazing style” and “open concept living” were probably put in to add sizzle, but they fail to tell a potential buyer anything helpful. Even after personally reading thousands of property ads over the years, I’m not sure I know what “bullnose corners” are, while I have to guess that “s.s. appl’s” refers to stainless steel appliances.
The last sentence is Realtor fluff at its best, ending with “convenient w. Biloxi location too!”. We are left with no idea of what makes this property a good location. We can tell from the address of the property that it is in Biloxi, along with the fact that many potential buyers probably find this advertisement because they search by city. There are only 4 lines of description copy as it is, and wasting words wastes the selling opportunity for the listing agent. We are never told how many cars fit in the garage anywhere in this advertisement.
Worse yet, this ad still needs editing. One sentence starts with a lower case letter, it shows “s. S. Appl’s” just like that, which is not correct casing in addition to being a confusing abbreviation. Sorry, but this typesetting makes everyone look bad. If this is really how the listing agent turned in this ad, the newspaper should have made the necessary punctuation changes.
Meanwhile, the description does not enhance the photo, and vice versa. Too little thought went into the preparation. If this is a “custom home”, we have nothing in the photo to support that since it doesn’t look lived in. If this is a newly built home (which we are not told), the photo would support that, but the current description copy does not. For a quarter-million dollar property, when there are other homes in the same price range and area now available, potential buyers do not need to be seek clarification when they can easily click ahead to the next property. The seller is entitled to having the agent do more than put in a hastily snapped single photo and some fluff in the copy being the representation of this property.
GRADE: D
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
711 Meridian St., Dearborn MI 4 + 1.5 $299,900
http://www.homefinder.com/MI/Dearborn/60187617d_711_Meridan_St
This advertisement is another example of why the primary photo is so important toward attracting potential buyers on first impression. The angle is not favorable at all. The eyes are drawn to the left side of the home, which has what is either an enclosed patio or an add-on. (The description copy doesn't even clarify.) We don't get to see whether or not there is a driveway and/or garage from this photo. This is Dearborn, home to a lot of auto company executives, and yet the parking situation is not dealt with at all in the exterior photo or the description.
In addition, this advertisement is still running in April, and the only exterior photo shows snow all over the property. Put these factors together, and the initial impression is that this home has been on the market for weeks, looks smaller because of the emphasis of the add-on or patio in the photo, and may not have any form of covered parking, despite an asking price touching $300,000.
As for the remainder of the photo spread, the majority of the interior photos are well done, but with one exception. Most of the time, including a photo of a bathroom is a positive, showing a nice design, plenty of room, new or modern fixtures, and the like. The bathroom photo on this spread is nothing but a negative. This enables us to see how narrow the room is, how "basic" its contents are, and how people can see into the room from the outside. (You can see the house next door looking out through the bathroom window in this photograph.) How on earth is that a selling point?
For those that stay on this property long enough to read the description copy, we have a case of too many abbreviations. I would like to think that for a nearly $300,000 property the agent would spend a few more dollars to have enough lines in the ad to actually indicate the selling points. What likely really happened is that the agent (or whoever handles the advertising) merely took the already written copy for the MLS and stuck it in the ad. As if that isn't bad enough, the opening line of copy refers to the "$150,000 in updates". Hopefully the view of the neighbor's house from the bathroom isn't one of those updates, but it's hard to say what they are.
It's the very end of the ad copy that tells a lot, "fam rm w/heatilator f/place, and sep kitchen eating". I'll admit that I don't know what a "heatilator" fireplace is, so I'm not sure if that's good or bad. (And if I don't know after seeing thousands of property descriptions, it likely isn't good for the occasional home shopper either.) The "sep kitchen eating" (without a period to punctuate the end of the copy) makes no sense. Do people have to eat in a separate kitchen? Or did they intend to say "eat-in kitchen". Guess we'll never know.
As careless as this advertisement is, it doesn't take that much time and effort to turn it around and make it effective. A more recent exterior photo from a better angle, one less interior photo, and copy written to show the true selling points would make all the difference.
GRADE: C-
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
8156 S. Luella Ave. 3 + 2 $275,000
http://homes.searchchicago.suntimes.com/properties/search/detail.php?qBackToSearch=qTerms%3Dsell%26qSearchTab%3Dsell%26qAction%3Dsearch%26qRegion%3DChicago%252C%2BSouth%260%26qMinPrice%3D200%252C000%26qMaxPrice%3D300%252C000%26qBedrooms%3D2-%26qBathrooms%3D1-%26propertyType%255B0%255D%3DHouses%26pagesize%3D20%26view%3Ddetailed%26qtotal%3D42%26qSortBy%3DPrice%26qSortDirection%3DDESC&qAdid=mls-07480039&propertyNumber=8
A classic example of a property that could be marketed much better than it is in this advertisement.
In this instance, the choice of the primary photo is not a good one. Just because it is the only exterior photo in the spread should not make it an automatic choice. The big tree takes away from the exterior view while the wide shot serves to diminish the big size of this home, as touted within the description. In addition, the first line of the description copy indicates "Double Corner Lot", even though one cannot tell that due to the angle of this photo.
Ideally, the exterior photo should have been taken from a closer angle without the tree in the way and showing the scope of the corner lot. Furthermore, at least 2 of the interior photos in this spread would have better served to have been the primary photo and demonstrate the size and luxury of this home. For that matter, it appears that the leaves are falling off the trees, meaning this photo could well have been taken last fall (or earlier), and this ad appears at the end of March. Not exactly a "fresh" looking property based on the one exterior photo.
Most of the interior photos are the strongest selling points for this home, showing the size and lavish potential.
Not only is the description copy far too brief, but it fails to prioritize the selling points. Starting with "5 Minutes To Lake" is not an important consideration for the majority of potential buyers considering this community. Especially with a custom built home on a "double corner lot" located in Chicago. Listing an approximately 2,600 square foot home within a large city for under $300,000 is a significant headline, yet there is such little emphasis on this fact.
The picky potential buyer will also notice that the "Details" under the photo show "3 bedroom 2 bath" before the brief description copy shows "3 br, 1.5 ba", and that is a negative to, in effect, 'take away' 1/2 of a bath from a potential buyer.
In addition, the onslaught of abbreviations makes it appear that the advertiser was more concerned about saving money on the ad than presenting the selling points of the home. Even with my experience, I had to stop and think of what a "custom designed wbfp" is. I'm sure that will be another potential selling point that will go untouched by any potential buyers who stick around beyond the primary photo.
Yes, what might have been. A primary photo of one of the wide interior shots and a description about the large size and custom features for under $300,000 would make a huge difference for this seller, who should be very disappointed in the agent's efforts.
GRADE: C+
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
2 Rimrock Ct. Columbus GA 3 + 2 $176,500 http://www.homefinder.com/GA/Columbus/53434353d_2_Rimrock_Ct
http://www.coldwellbanker.com/servlet/PropertyListing?action=detail&ComColdwellbankerDataProperty_id=71758252&page=property
The only thing I can gather from this advertisement is that neither the seller nor the agent cares if this home ever sells. I found the first ad linked via the Columbus newspaper's web site, listed among several others listed within that same price range.
At first I thought that this listing agent must not have known that this listing was even appearing to the public when I clicked on the Coldwell Banker office link for the ad of this same property (shown here as the 2nd link). I very rarely show a 2nd link, figuring that a potential buyer wouldn't go that far. To my amazement, the office site has the same lack of information.
Incredibly, both "advertisements" to the public refer only to showing the home and to not let the pets out of the gate. I was going to give some credit to the ad on the Coldwell Banker office site showing several photos. However, there are problems with those. One of them is with the garage door open and shows 2 vehicles parked inside. This creates a security risk for the property by enabling the public to see the cars by the people who live there. It is wrong to publish those.
One of the interior photos shows only an excercise machine on a wood floor (I couldn't even see a mat) with no other furniture. Of course, we have no idea whether or not the excercise machine comes with the house. Others are taken at poor angles.
Combine this with absolutely no description, no "sizzle" to bring out selling points, and nothing about the neighborhood or unique amenities, and you have a total disaster of an advertisement.
There is absolutely no reason for anyone to follow up about this home. Sorry, but the only viewers who could benefit from this ad are criminals.
GRADE: F
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
16w751 90th St. Hinsdale IL 3 + 3 $269,900
http://www.homefinder.com/IL/Hinsdale/45388527d_16w751_90th_St
Only one photo to create the first impression. Yet, upon randomly choosing this advertisement during the first week of January, the one photo has green grass and blue sky from what looks like a summer day. Keep in mind that Hinsdale is a quaint and upscale suburb of Chicago. Right off the bat we can easily guess that this home has been listed for a long time, or if not then it is not a current photo. Either way, that is not a good start.
In addition, the angle of the photo is not as good as it could be. It is too wide of a shot and does not feature the exterior details, nor does it make it clear that it has a 2-car attached garage.
The description copy begins with "New in '06:" and goes into an abbreviated list of amenities. Some would think that the house was built in '06 from that way that is written, while others would have already seen the line to the left showing that this home was built in 1978. Three year old improvements are not "new" enough to make that the first selling point. Features such as "kitchen cabs, appls, front door, crown molding & trim, ceiling fans in all bedrooms" which are more than 3 years old?
Next, we are told that the house is being sold "as is" and "needs a few repairs, mostly cosmetic". I understand that this has to be explained. Yet the "mostly cosmetic" essentially negates the entire description we had just read, which highlights the 3+ year old amenities.
Next, we get what I call the "fluff" copy about the seller being "very motivated". Sorry, but it sure doesn't show, at least not from this agent. Showing a summer photo in January? "New" from 2006?
It's only when we read the quick facts below (which a lot of people who check out this advertisement won't even stick around for) that we discover there is a 2-car attached garage and central air. These are better selling points than most of the ones listed.
Nothing about the community, schools, or the neighborhood either to entice a potential buyer.
While I understand the mention of "possible short sale" is intended to encourage offers, it doesn't work in the context in which it is presented. Factor in the photo, the 2006 reference, and the other negatives, and the vast majority of this page really says "Offer anything and get this property off the market ASAP" without offering nearly enough reasons to do so.
It is even more disappointing to note that I randomly selected this listing via the Chicago Tribune web site, which is one of the busiest real estate web sites in the country. The lack of effort from the listing agent comes across throughout. I wouldn't be surprised if I check back in 6 months and see the exact same ad, even if the photo would then appear to be fresh.
GRADE: D-
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
This week I had a mortgage lender that has been a client for more than a year decide to cancel an advertising campaign I helped him to secure. He told me that he wasn't drawing enough business from it. Some people just don't get it.
Lately, consumers are bombarded day after day with negative news about the real estate industry, ranging from mortgage loan problems, foreclosures, fewer sales, and the illegal actions by people trusted within the industry.
As I have done in recent weeks, here are a few stories about people in the industry I have found as part of my daily reading.........
http://www.law.com/jsp/article.jsp?id=1202424077252&rss=newswire
http://www.dailyherald.com/story/?id=229999&src=109
http://www.canada.com/theprovince/story.html?id=1fb3c5da-cc5f-4f00-ab45-492b77621a9c
http://www.latimes.com/business/la-fi-harney24-2008aug24,0,4322966.story?track=rssBut that's not important now.
I told my client that this is the worst possible time for him to stop his campaign. Consumers used to seeing his campaign every week in the same place will "figure" this lender has also closed its doors. He will lose the "recognition by repetition" factor he built up over the past year. Those consumers who are looking at options today for what they want to do when conditions get better will see his competition instead.
No, I'm not complaining because I lost a sale. Truth is I am complaining because I could lose a quality client forever because he wasn't getting enough instant gratification.
Consumers know it is a buyers' market at the moment. When they are poised to jump on an opportunity, they will jump with whoever is there at the moment to jump with them.
This morning I was talking with a Realtor in the business for over 25 years. She told me about a colleague who showed a first-time buyer more than 50 different houses. Her client made several "low ball" offers, but none of them were accepted. The potential buyer was upset with the Realtor for taking him to all of those houses and not being able to buy. The lady I talked to expressed her frustration with the potential client.
From my corner, I'm going to side with the potential buyer that his time was basically wasted. That realty agent should have stopped after no later than the second "low ball" offer. If the offer was for $200,000 on a home listed at $230,000 and it was rejected, it is up to the agent to step it up. Find that potential buyer a similar home that he could get right away for $200,000. Don't keep taking him to homes he isn't going to get.
Instead, the sellers are still sitting there upset that veteran realty agents aren't bringing them a good enough offer to sell. These "low ball" buyers get upset that their agents aren't finding them these good deals in a "buyers' market".
It is up to people in the industry to make a possible transaction work for all concerned. No agent should be showing a buyer 50 houses and not have an offer accepted - in any market.
Meanwhile, a thumbs up for Forbes for their recent story about using real estate investing to put off tax bills. That is what I call creative financing. I regular contact some mortgage lenders who are also CPA's or also have a tax service in order to diversify. Yet, I wind up reading about this years old concept in Forbes.
(If you didn't see that story, please contact me and I'll send it to you.)
And then.....
I read that the NAR admitted to spending more than $3,000,000 in just the 2nd quarter of this year to lobby for measures related to the housing market. And I'm upset about that.
Give me the chance. I'm not the brightest bulb on the planet, but I would have done things way differently than the Association has. For next quarter, give my company the $3,000,000 to work with.
Let me work with a P R expert on changing the negative reporting. No more of the "sales are down 22% from a year ago" stories. Those should be billed as "more than 26,000 homes sold during July....." and forget the negative comparisons. A $100,000 public relations campaign blitzing the media with only positive facts and happy homeowners would be a solid start.
Next, I would implement an Association promotion. As of a pre-determined date, the first 10 homes sold in each of the 50 states will receive a $1,000 closing rebate from a fund started in conjunction with the Association. That would total $500,000 in rebates. I'll allot $400,000 in legal and administrative costs to make that happen. No advertising or P R costs because I would expect aggressive agents to get their buyer clients in gear.
This promotion would be a major score. Buyers and sellers not going through an agent would not be able to partake. It creates much needed urgency in a starving marketplace.
And, I just showed how it could be done and benefit people in all 50 states on a budget.
Of course, doing all of the above with a budget as large as $1,000,000 will pay off for the industry.
My next step after that? Take the $2,000,000 profit I would have made and buy a $2,000,000 mansion and live happily ever after.
Meanwhile......
Let's watch the Kolter Group, based in West Palm Beach, FL. Commercial Property News reports that they have become the second large commercial real estate company to announce a financial commitment into residential. To the tune of a $1 billion joint venture including residential developments within Florida.
Later that same day, I read the story from Hawaii about how the number of inactive licensed agents in that state has increased to 6,254 (as of July 30) from 4,702 last year, according to the Department of Commerce and Consumer Affairs' professional licensing division. Try that on for size. More than 1,400 licensed agents not even paying dues to remain active in local real estate.
Shows what can happen if you, as an industry professional, stop advertising.
I’m disappointed at what I hear from experienced real estate and mortgage lending professionals in recent weeks. Let me change that. I’m disappointed in what I am NOT hearing from these same people. I’m not hearing the positive.
Those of us on the inside realize that there are more challenges than ever before in the real estate market. But we have the choice of responding rather than accepting. As a consumer, I tune to the electronic media and check for information online just like the next guy. It seems like all I hear, see, and read, is the negative. Where is the response?
New stories pop up every day about how many banks are now struggling because of problems with outstanding mortgage loans, foreclosures, and funding sources. It seems the perfect opportunity for established mortgage lenders to advertise and promote “All we do are local mortgages. We do not have the problems your local bank faces.” Instead, the media keeps story after story about the banks in crisis going day after day.
Same thing on the real estate side. I’ve been seeing realty boards and association monthly statistics report “June sales down 15%” or whatever it is. Why can’t they report that 5,740 homes sold in just the Dallas-Ft. Worth Metroplex for the month of June? Even if that amount is lower than previous years, realty firms need to point out that homes ARE selling in the area.
Instead, without specifically looking, I found several stories about problems with realty agents and crime. Here are a few from the past few days: (You can look if you want to, but this is to make my point.)
http://www.newsday.com/business/ny-lsbirth5797493aug13,0,5752132.story?track=rss
http://www.newsobserver.com/business/story/1175429.html
http://www.myfoxla.com/myfox/pages/News/Detail?contentId=7185501&version=4&locale=EN-US&layoutCode=TSTY&pageId=3.2.1
http://deseretnews.com/dn/view/0,5143,700250103,00.html
http://www.aspentimes.com/article/20080729/NEWS/222688344/-1/rss02
http://www.myfoxorlando.com/myfox/pages/News/Detail?contentId=7081078&version=2&locale=EN-US&layoutCode=TSTY&pageId=3.2.1
Let me put this another way. The news is overflowing with reports about banks and sub-prime lenders in serious trouble over hundreds of millions of dollars. Realty firms are downsizing and closing, and professionals are finding legal trouble on a regular basis.
Yet, most of what I hear and see is about dealing with a challenged market. Don’t you wonder where the “challenge” really is?
This is the time for creative advertising and marketing. Mortgage brokers and realty agents can and should bury the hatchet and truly work together. With gas prices still outrageous, even working to find someone the “same” house 10 miles closer to work can be presented as monthly savings. Consumers could get the tax advantages of a move, and a new mortgage even for the same amount brought by a local move brings a realty agent commission and a mortgage where a refinance isn’t justifiable.
In the days to come, I’ll try and share specific stories of creative real estate and mortgage business. If you can contribute to the positive, please let me know. I’m happy to share!
I continue to contact at least 300 potential clients every week, regardless of market conditions. Realty agents on mortgage brokers should continue to market their individual ideas and capabilities to as many potential clients as possible, and not fall victim to the statistics game. Keep in mind the old joke that "38% of statistics are meaningless". It's how you use them. Coke & Pepsi both have plenty of geographic and demographic places to tout themselves as "#1". CNN and Fox News both claim to be the most watched, and in certain age groups, they each are. It is not what you advertise and market - it is HOW you advertise and market.
Last week a read the statistics for May 2008 about the drop in home sales in the Dallas area since one year ago. I went past them, actually, and saw that 5,088 homes sold just in the Dallas Metroplex within the month of May. To my way of thinking, that was cause to call 100 mortgage lenders in the Dallas area to let them know that "more than 5,000 homes in the area have sold within the past 60 days, and that is over 5,000 mortgages". Yet, many of the lenders I spoke with continue to tell me to "call when the market picks up because I don't have any money now". Obviously, they stopped reading after the "home sales are down...." part of the story.
You need to use information to your advantage, along with some creativity. This week started with IndyMac Bank in the headlines, and not good ones. Another large bank in serious trouble.
For as much as outside advertising and marketing helps, you can use news such as the above to your advantage in your weekly or monthly contacts. Realty agents should be calling their investor type clients to remind them that with more banks now in trouble (you) could help them find the best deal on a bank owned property. Mortgage lenders should be calling past and potential clients to let them know they have more funding options than the bigger banks that are being shut down, even with so many great deals out there right now.
Desperate times call for creative measures. (That's my personal saying!) Let's use builders and developers as an example. Many builders continue to force their internal mortgage company on buyers. Some of those same ones have not been Realtor friendly. That was then. Now that buyers aren't lining the streets to enter a model home, the time is right to make contact.
Centex is now offering "special bonuses" for realty agents. And what does a builder's own mortgage company do if a potential buyer doesn't qualify? They could lose a much sought after sale. What if you could bring them and/or qualify a buyer they can't?
It also amazes me that I am not seeing advertising or marketing from realty offices and lenders to encourage downsizing. Gas prices are now the biggest concern for most of us. Some people live in fear of making their mortgage for the coming month.
Instead of sitting there waiting for rates to drop so you can think about advertising for refinance clients, your time could be used to seek and find more viable options for current and open potential clients. Don't forget that for your sales and refinance clients, you have their information about where they work and what their payments are.
Let's say you handled the purchase for John & Mary 3 years ago on a 2 bedroom $300,000 house 20 miles from where John works. John & Mary aren't likely to refinance at today's rates, as it wouldn't make sense. So instead of saying "next!" do a little research.
What if you found a $225,000 house with 2 bedrooms and similar amenities that was 5 miles from John's work? (And don't think it would not be as good of a property - given the home buyer's market in many areas!) John would save 30 miles per day (over 1 gallon of gas each day - and around $100 per month at today's outrageous gas prices). And the lower mortgage on the "new" house would save them at least $200 per month additional. Presto! There is a way to save John & Mary at least $300 per month and take advantage of the buyer's market. Even if John & Mary tell you "no thanks", you will have impressed them with your creativity and knowledge of the market. They won't forget that when they are ready to say "YES!" in the future.
It is your creativity that can win you more business. One of my most creative clients within the past couple of years include a mortgage lender advertising a loan program benefitting public service professionals. That is hitting a niche market, both for now and the future. Another set up a separate loan office down the street from a new development, advertised himself as the lender specialist for that plot, and got the most loans of any mortgage broker when the development finally sold out.
It is a big country out there. The more creative ideas you share with me, the more business we can all generate.
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