Marketing real estate listings can require a very different approach for investors verses home buyers
Marketing real estate listings to investors is a completely different ball game to marketing to home buyers. Ensure sales success by targeting the right market.
When marketing real estate listings to home buyers, you are selling the dream home; to an investor, you are selling a moneymaker. Generating tailored advertising and marketing materials to suit the target market can therefore have a big impact on your final sales results.
Marketing to home buyers
In real estate, there are plenty of sayings: sell the lifestyle, not just the four walls; buy with the heart and justify with the wallet; appeal to the wife and the husband will follow. Stereotypes and generalisations aside, they all have one thing in common: they capture the emotional nature of home buyers.
Appealing to this type of buyer requires marketing materials, contact with buyers and property viewings that showcase the very best of the property and the neighbourhood:
- Always use high-quality images, but remember to ensure that photographs used always represent the property realistically. According to the Real Estate Institute of NSW’s guidebook; Identify Legal and Ethical Requirements of Property Sales an agent cannot edit photographic images of properties “such that images no longer truthfully and fairly represent that property”.
- Stage the property to look ‘homely’.
- Tailor advertising copy to highlight the lifestyle inclusions.
- Know the distances to local beaches, parks, schools and public transport.
- Target open houses to days and times that best highlight the neighbourhood.
- Doorknock neighbours ahead of viewings to request they tidy gardens, park off-street and keep noise to a minimum. It’s in their interest after all for properties on their street to attain a good price as it reflects on the price of their home.
When targeting home buyers with your marketing material, it is also important to consider what factors appeal to first time home buyers compared to what subsequent home buyers (upgraders) are interested in.
In a survey of 1098 home buyers and investors commissioned by the Commonwealth Bank, in partnership with psychologist Dr Tim Sharp, the research revealed there were differences when it comes to the most influential emotional characteristics between the two types of buyers. It found that while first home buyers are more likely to be influenced by the décor of the interior (19 per cent), subsequent home buyers are more likely to be influenced by having a vision of what they wanted before they moved in (22 per cent).
Remember that as well as the property itself, home buyers can be emotionally invested in the act of purchasing a home. That includes their dealings with the agent. So ensure that when marketing properties to home buyers, you are also marketing your skills as a selling agent. Real estate agency Century 21 use their business blog to showcase how versatile the experience of its agents is by creating content that covers various categories including buying, first home buyers and investing.
Marketing to investors
Advertising materials most likely to catch investors’ eyes look somewhat different. Essentially, while words and pictures sell a property to a home buyer, it’s numbers that will see an investor snap it up. Communicating those numbers in your marketing materials is therefore key to luring in the investor dollar, such as:
- Completion dates for new infrastructure projects
- Distance to services and transport facilities
- Past and projected capital-growth rates for the area
- Current and projected rental yields
- Land size
- Comparable sales
- Specifically targeting foreign investor groups, such as drawing attention to the number eight for Chinese investors
While seeking out portfolio-building investors to generate repeat sales may seem like a winning strategy, bear in mind that investors will seek to minimise costs across the board, including agency fees, which can push your commission rates lower. Conversely, time is money, and investors are the more likely party to complete a fast sale.
While there are benefits and drawbacks to both buyer groups, attempting to combine these points and market property to home buyers and investors can increase your profile as an agent. However, achieving the best results usually means attracting the right type of buyer to each particular property – and that means targeting each property marketing campaign to the right audience from its inception.
Contact Campaigntrack for more information on how to effectively target your marketing campaigns.