Commentary on Stats and Trends

Perhaps you’re wondering why I’ve been listing so many stats and trends in my recent postings. I see so many organizations that use lots of marketing tactics, but have no strategic focus. They send mail or advertise at random - particularly when they need business or when they see a competitor doing so. Haphazard marketing never gets you the ongoing results you are looking for. Yes, you might get a few leads here or there… or you might get none at all.

The stats I’ve seen recently point to 2004 as yet another great year for real estate. Mortgage rates are still low. People still seem eager to buy and sell. But hovering in the background are those that warn of a bubble that’s about to burst. Sure, there will always be naysayers who look to the worst, but what if they are right? Every small business fears economic downturn and how that will affect their business. Some months may be worse than others. So, I ask, can your business survive if the bubble bursts?

NAR reports that their membership will reach 1 million Realtors in the US this year. That’s on average, 20,000 per state. In Pennsylvania, the number of Realtors who’ve joined the PA Association of Realtors is around 27,000. That’s a lot of competition! Right now there may be enough business to support everyone, but if people start buying and selling less, is your marketing strong enough to differentiate you?

One of the stats I found particularly interesting was the number of existing-home sales in the Northeast. Yes, that number rose 2.9% in December, but that number was far lower than the 9.4% in the Midwest. The number of total units for sale was about half in the Northeast as well. Less houses for sale always translates into more competition for you!

Additionally, looking at statistics can give you a good sense of which people are most likely to buy and why they are making their purchasing decisions. 25% move because of a life change (retirement, relocation, new baby, divorce, etc). 18% want a bigger house. 16% want an investment. 7% are looking for tax breaks. The moral? People have different motivations to buy and sell. And by addressing those motivations in your marketing materials, you will more effectively reach your target audience. For example, if you focus on buying a home as an investment and the family you are targeting just had a new baby, they won’t perceive that you understand them. On the other hand, if you address that they’ve just had a baby and are looking for a better place to raise a family, you’ll be far more likely to connect with them. It sounds fairly obvious, but so many Realtors use mass marketing targeting - repeating the same message to everyone. When you use generic messages, you end up saying nothing more than “I am the best” and that convinces no one.

Marketing requires focus. That means picking a target market, or even a couple of target markets, and tailoring your message specifically to them. The better you can get inside their heads to see their motivations and fears, the better you can address those potential objections and questions in your marketing materials. And when you can alleviate fears and objections, you are far more likely to get the client!

For more marketing tips on picking a target audience and catering your message to them, download our free booklet, A Realtor’s Guide to Personal Marketing.