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The 2 keys to getting top dollar for your home… Marketing Competitive Positioning.

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Presentation on theme: "The 2 keys to getting top dollar for your home… Marketing Competitive Positioning."— Presentation transcript:

1 The 2 keys to getting top dollar for your home… Marketing Competitive Positioning

2 Its competition for the best homes that set the price & determines the market time Competitive Positioning

3 People buy by comparison Theres always competition for the best of show At any given time, in any given market, theres 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

4 This graph shows the relationship between activity & weeks on the marketwe see the hovering group of ready, willing & able come early! Research also shows that properties that sell more quickly generally net more

5 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) (Sold comps) Similar homes for sale on the market are the competition (Active comps) (Active comps) Similar homes recently off market show what didnt work! (Expired comps) Competitive Positioning

6 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

7 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

8 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

9 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 wrongperceived value is compromised accordingly Competitive Positioning

10 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, its competition for the best homes that set the price & determines the market time Competitive Positioning

11 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

12 Besides competitive positioning, the other major activity needed to achieve top dollar in the shortest amount of time is…

13 The broker community Equitables print advertising & web strategy Other marketing venues Exclusive luxury real estate affiliations Virtual tours Professional custom brochures Just Listed cards Eye-catching signage Marketing

14 Warning!! No amount of marketing can compensate for improper positioning People ultimately buy by comparisoncars, 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

15 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

16 Other marketing to brokers may include: Equitable company tour Local market-specific REALTOR tour(s) Open houses targeting agents Target mailing / to agents active in our market Brokers Open events Networking within the industry Marketing

17 A fundamental change in approach or assumptions Marketing

18 eMarketingMarketing 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)

19 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 Equitables print & web strategies embrace this new paradigm like no other firm eMarketingMarketing

20 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 its typically early in their home search In short, they are not ready Marketing

21 Why advertise if it doesnt 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

22 Building a better mousetrap! The typical home advertising publications are not user friendlytry 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 arent much fun! Marketing

23 Introducing the new eFineliving Magazine & 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 Its fun…its 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

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28 ~ 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 eMarketingMarketing

29 Virtual Tours Distributed… MLS Realtor.com Google Yahoo & many more (click to see)

30 Elegant professional brochures…

31 Just Listed post cards…

32 Eye-catching signage…


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