Real Estate Marketing Strategies: How Does It Change With The Changing Times?
Most of us have lived through a variety of real estate markets, from buyers to seller’s market, to what many consider a normal and balanced market. Sometimes this happens over an extended period of time and we often witness changes occur without prior notice. For example, in the last year or two, we’ve been through a strong seller’s market, where there were more qualified potential buyers than there were houses for sale on the market. After more than a year of steadily rising home prices, combined with little inventory on hand, we see some cooling and a more balanced situation. Many factors are involved, including: perceptions (buyer and seller); local area; general economy, local economy; interest rates and availability of mortgage funds, etc. With that in mind, this article will attempt to briefly consider, examine, review, and discuss some recommended marketing strategies for a variety of circumstances and conditions.
1. Vendors Market: When the inventory of homes for sale is extremely limited and conditions are such that many qualified buyers are searching for a home, there are two possible strategies that could be the most effective. One, which we see most often, is setting the price of the house, in the higher range, believing that the number of buyers will bring a higher price. Another possibility, especially for a homeowner, who wants to market / sell his house, in the shortest period possible, is to price the house at the lower end of the real estate market. When this strategy is used, it often generates many more views and action, and we often witness a bidding war. I did this with a client of mine, during this past, recent market, and I received 22 markup offers, in the first weekend, and the house sold, for more than fifteen percent, above the listing price. Sellers should interview potential agents and discuss marketing strategies and which ones might work best for a specific property.
2. Buyers Market: When there is more inventory than qualified buyers, we often witness a buyer’s market. Obviously, in these circumstances, the best approach is to conservatively use a Competitive Market Analysis to determine the listing price. Remember, in many cases, the best deals come, in the first few weeks, after it has been listed, so those who value the house too aggressively often suffer. Put a price on the house, right from the start!
3. Balanced market: When neither side experiences a significant advantage over the other, we see a balanced market. In these cases, setting smart prices and accentuating a property’s strengths, in the face of competition, in the local area, is a must for success.
A smart homeowner interviews potential agents and hires the one with the vision and understanding to use a strategy that works best for the particular property. Since, for most, your home represents your most important financial asset, doesn’t that make sense?
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