Last year, a full 89% of buyers used a real estate agent, and so did 88% of sellers. Realtor representation during a real estate transaction is important for both buyers and sellers. This is a fairly sound conclusion made by most people. But, in a vast sea of neverending realtors, are all realtors the same? Why should I use a particular agent or brokerage? Why should I consider Jon Speich as my realtor?
I’m glad you asked. Let me make my case for you here.
At JP Willman Realty Twin Cities, we have created a streamlined approach to the traditional real estate transaction…to ensure a smooth and stress-free experience from start to finish. We handle every step of the process – giving you the highest level of service possible to sell your home for top dollar in the shortest amount of time. Our marketing strategy is the engine designed to deliver you these results. Marketing is your realtor’s primary task.
The 4Ps Marketing Model
Back when I earned my marketing degree, among others, Professor John Cerrito taught me the fundamentals of marketing. A key element of these fundamentals is the “marketing mix.” In my classes I was introduced to the 4Ps marketing mix: Product, Price, Place, and Promotion. These same fundamentals apply to how we implement our marketing plan for home sales. We have adopted those same principles into what we call our 4Ps Intelligent Marketing. These are the ingredients that combine to capture and promote your home’s unique selling points, those that differentiate it from the competition. Let’s look at each of these in more detail.
You’ve probably heard the real estate agent mantra: location, location, location. You’ve certainly heard the phrase enough and may wonder what inspires agents to say the word three times. To be sure, location is important. But, is that all there is to it, location? There is a whole lot more! It is our approach to discover and display what is it that makes your home special.
How will you present the property as a product to appeal to buyers? The first of the Four Ps of marketing is: product. A product, in our context, is a property that fulfills a need or want of a buyer. Its critical that you have a clear grasp of exactly what makes your property unique before you can successfully market it. This is the meat of our marketing mix. It’s the stage from which we launch our marketing.
Our presentation strategies and techniques include:
• Exceptional staging
• Contractor and vendor referrals
• Professional photography
An important part of our home selling game plan is to understand who your potential buyer might be. An integral part of presentation is to understand who we are targeting. This won’t just help you identify the most likely buyer pool, but it will also help determine what work you should do to make your home attractive to those buyers. Our recommendations and advice will be mindful of specific buyer attributes.
We have developed a dedicated marketing process often used with our clients. As a part of this process, we incorporate the four Ps through a series of questions designed to help define how we will list the property. Here are just a few of the questions we consider:
1. What do buyers want from your property?
2. How does your property meet those needs?
3. Where do potential buyers look for with your particular home?
4. What is the perceived value of your home?
5. How do you differentiate from your competitors?
How do you set the right price? It is extremely important to price your home correctly. When your home hits the market, you have a short period of time to capture the imagination of the best buyers.
A Comparative Market Analysis analyzes homes similar to yours. The aim of the market analysis is to achieve the maximum selling price for your home while being able to sell your home within a relatively short period of time.
What does your comparative market analysis say about how to set listing price? Once a concrete understanding of the relevant market is established we can start making some pricing decisions. Price determination and strategy is likely the most important factor in our marketing mix.
Overpricing your house in the belief that you can reduce the price back later is a strategy that can backfire badly. For example, by the time you reduce your price, you may miss out on a surge of interest in properties like yours. Also, if prices are lowered, buyers may wonder if there’s something wrong with the property that kept other buyers away. So to keep from selling your property at below market value and from wasting valuable time, don’t fall into the overpricing trap.
The above chart illustrates the level of excitement and interest in a new listing over time. It also demonstrates the importance of pricing correctly. When a property is first listed, it generates a very high level of interest from prospective buyers, which reduces dramatically over time. It is important to be priced correctly from the beginning, during the peak of this curve.
How will buyers discover your home? Place or placement has to do with how the property will be presented to the buyer. How and where the property is presented is a key element of placement. Which medium or platform will be utilized? Digital? Offline?
Often you will hear marketers saying that marketing is about putting the right product, at the right price, at the right place, at the right time. It’s critical then, to evaluate what the ideal locations are to convert potential clients into actual clients. The actual transaction doesn’t happen on the web, but the initial place potential buyers are engaged and converted is online.
How do you communicate details about your property? This is the fuel of our marketing mix. We’ve got a product and a price. Now it’s time to promote it. There is a distinction between marketing and promotion. Promotion is just the communication aspect of the entire marketing function. Promotion looks at the many ways we disseminate relevant property information to buyers and differentiate it against the competition.
Communication strategies and techniques include:
• Complete and comprehensive internet marketing
• Social media marketing
• Emailed marketing
• Signs and flyers
• Virtual tours (video marketing)
Additionally, our real estate expertise gives us the ability to network with an agent within our brokerage and at other firms to promote your property to the widest possible audience. We also employ a powerful tool that too few realtors use. It’s called Reverse Prospecting. What is reverse prospecting?
Reverse prospecting is the publication of a homebuyer’s wants, needs and desires in their next home, allowing for realtors to actively search for potential buyers for their listed properties. Think of it as an MLS of buyers, whereby agents can match their properties’ characteristics against buyers’ desires in a home (location, square footage, beds, baths etc.) and find appropriate matches.
Selling your property depends on a lot more than advertising and signage – it takes referrals, word-of-mouth advertising, strong networking.
Marketing should be your realtor’s primary task. Our 4Ps marketing model is intelligent, robust, and it works! You too can enjoy a smooth and stress-free experience from start to finish accomplishing all your goals.
Let’s talk soon!