Today was a special day for the Toronto Condominium industry as Urbanation released their latest findings on the Toronto Condo market for the first quarter of 2012. Reaching a new height, the results surpassed industry expectations in total units sold.
Properties are constantly being developed all around the world, making it harder for you as an investor to choose where to invest your hard earned cash. Land is the one asset that never depreciates, however, when it comes to selecting the property that’s right for you, you should always consider these 3 crucial points:
Around the world, the Trump name is recognized for its opulent portfolio of properties and developments, where a commitment to excellence is standard. The expectation when arriving at any Trump operated location is of incredible quality from the moment you are greeted at the door to the time of your departure.
To much anticipation, the ceremonial red ribbon was cut Monday at Trump International Hotel & Tower Toronto® by the Trump family and Talon International Development Inc. in honour of its grand opening.
Sell to all your market segments
One size does not fit all – not in t-shirts, not in lattes and certainly not in real estate. As a result one of the biggest mistakes developers make is to use one brand statement to try to reach everybody. In the old advertising days they used to call it “Spray and Pray” because it involved blindly blanketing everyone with the same message, and hoping and praying it sticks to somebody.
Those days have been replaced by highly targeted, individual marketing where all of your prospective buyers receive a marketing message that is specifically targeted to them. If you have three different target groups, say investors, first time buyers and empty nesters, start with three different website addresses or URLs that focus the information on that particular group.
Investors generally do not care about the esthetics of the home, rather they want to know about the commissions, contracts and closings. The site should answer all of their financial questions about the rental market, typical resale value in the area and other relevant concerns.
First time buyers on the other hand want to know that the area is young, sexy and hip. Their website should focus on these details and fresh imagery that would get their attention.
The empty nesters are usually looking for a lot of floor space, storage and two or three car garages - they may want their pets to move in too. They will usually be less interested in financing as they will be selling another property at the same time and buying their new home with cash.
Some strategies to keep in mind:
When marketing to investors, use the imagery and the words they use to market financial services. Also talk about diversifying – if they own a lot of single-family homes, they may need more multi-family housing. If they own residential now, they should try looking into commercial.
When marketing to first time buyers stress the prestige of owning your home rather than renting, the wise financial decision of buying and the way in which this decision will help to create a much brighter future. Also focus on the hip and trendy lifestyle that awaits those who act now.
When speaking to boomers or empty nesters use physically attractive people with a touch of gray – or those that most empty nesters would aspire to look and act like.
Regardless of which market segment you are trying to reach, or which medium you are using, be sure to use testimonials – an incredibly powerful way for you to drive your message home.
Try targeting a specific market
And one last point about creating customized targeted niche marketing. You may not know this but I spent the early 1990’s as the one-man marketing machine behind the then unknown bands the Backstreet Boys and ‘N Sync, at a time when the Internet was just emerging as a marketing tool.
Back then we had absolutely no budget but we did have a very focused target audience of 13-year old girls. The decision to narrow our focus rested on some solid research that suggested this age group had the interest, the time, the disposable income and the influence to take our two previously unknown boy bands and promote their music, message and merchandise around the world. And it worked.
The Backstreet Boys as an example went from zero to $1 billion in sales in 27 months through the power of target marketing.
I bring all this up to remind developers that sometimes, focusing your marketing efforts on a niche audience can be a very wise decision. And whether you are speaking to a local, international or niche market, be sure to craft content that resonates with them specifically and makes them feel that this project was custom designed for them.
I just gave an insider point of view to the Toronto Sun and I thought you'd be interested in reading it before you go out condo shopping this weekend.
Scroll down for a text version of the article.
4. Leverage the herd mentality
Two restaurants sit on opposite sides of the street. The cuisine and atmosphere of both are of equal quality and the menus are comparably priced. But when potential diners see a line of people waiting at one of the restaurants and not at the other, they assume the busy one is superior, and then they follow the crowd. It is a phenomenon known by many names - pack mentality, peer pressure, following the herd – and it plays an absolutely critical role in selling real estate.
Here is how you can make the herd mentality work for you:
To study people who are experts at drumming up urgency and creating momentum go to a timeshare presentation because they’re incredibly skilled at this. The idea is to bring together a group of qualified prospects interested in the same property, thus creating a sense of urgency.
When buyers compete for real estate, almost like in an auction setting, the fear of loss will often compel him or her to buy much faster than if no one was around and they and all the time in the world. However you do it, creating urgency creates a competitive environment that helps property sell.
If you’re considering having a launch party for your project think about hosting in a smaller venue than you might actually need, including having fewer parking spots available. That way potential buyers will feel the squeeze, both psychologically and physically, when surrounded by a group of people all interested in the same thing.
And don’t worry if some people only show up for the free food or festive ambiance. They still represent bodies in the room and the perception that more people are interested in your project works to your advantage.
Remember the perception of scarcity and the fear of loss are powerful motivators in human psychology – use them to your advantage and you will be amazed how a sense of urgency can help you sell in any market conditions.
#3. Count Your Consumer Touchpoints
If you have never used Google then the time has come – and if you’ve only been using Google to find the latest sports scores or what is playing at the local movie theatre, then it’s time to familiarize yourself with its true power in the world of real estate marketing.
First, a quick overview: Google started out as an online search engine - a website where you can type in random words and have a list of web sites appear that feature those same words. Handy stuff. But over the years, Google has transformed into more than just a search engine. Today, you can buy much of your traditional media through Google, including radio and television spots.
And as new means of advertising become more popular, such as marketing on our cell phones, it is likely that Google will lead the way in this environment as well. In many ways Google is a virtual one-stop shop for advertising dollars.
However because most of us do not have time to become Google experts I recommend hiring one. They are usually in their 20’s and have their heads filled with knowledge that would take most of us a lifetime to acquire.
Hiring a skilled Google expert is probably the best investment you can make – and it is an investment that should be made, considering the fact that the Internet drives 80 to 90% of all real estate sales, despite being allocated only 2% of the average marketing budget.
A great way to lower your cost per lead
Let me give you an example of how Google marketing can pay off. We did a report for a client called Waterside, the largest condo conversion project in America at the time with 917 units. Our marketing plan focused on getting unique 1-800 numbers and unique URLs, and here is what we learned about the last thousand leads we received.
Our price per lead was $660 from all of our traditional print marketing – even with great copywriting and messaging that targeted the right market. Our online cost per lead was in the $100 range – but of all of our online advertising, the least expensive and most valuable investment was Google. It cost just $13 per lead.
Now let me ask you, would you rather pay $600 or $13 per lead? Sure the $600 cost may make you feel good because you will see a big photo of your project in a major newspaper, and you can show it to your friends. But in the end you will be paying 25 times more for those leads that if you were advertising on Google.
So here is what the Internet and Google can do for you:
In the old days of marketing, your print ads were separate from your direct mail, which was separate from your sales centre and so on. Today every marketing initiate you do should drive people to the one, central marketing hub you have – your website.
Every single touchpoint you create with a potential buyer, whether it is over email or a billboard, at your sales counter or in a phone call, should drive people to your website so you can track what’s working and what is not.
Traditional marketing pieces that sync with your website can be particularly effective. For example a postcard is the least expensive direct mail piece you can send – and it is even better when that postcard addresses a client by name, Sally in this case, and includes a specific call to action: “Want to see if you’ve won a weekend in the Florida Keys? Log on to: www.atripforsally.com”.
Once Sally logs on to this unique URL a salesperson can be notified and can contact her within hours to inquire about her interest in your project.
Do you know what the single largest online resource is for selling real estate? Craigslist – and it is free. If you have never posted a Craigslist ad it takes about 10 minutes, even with photos. Facebook, MySpace, Linked In, Twitter and other social networking sites are also great options and well worth the investment.
You should also familiarize yourself with Search Engine Optimization – the free advertising you get on Google when your website address appears when people type in search words related to your offering.
Now you may be thinking that Google only reads words right? When Google bought YouTube, the number one video site in the world, they changed the game. Google reads Flash and images, which means the keywords, tags and meta-tags used in the naming and descriptions of your content must be relevant. It is essential to optimize all of your text to be as relevant to your audience and project as possible. Be sure to hire an expert.
Pay per click is a great way to go
You should be using pay-per-click advertising. Go to Google’s home page. Do you see the sponsorship links? Those listings are paid for. Figure out what keywords people would type in the search toolbar that are related to your project and buy that listing. For example, if you buy ‘Miami office condo’ it might cost you $2 to have your listing appear in the search results.
Pay-per-click is a bidding war so if somebody is paying $1.00 you should pay $1.05 and you’ll be listed above him or her. I would suggest being in the top three positions for your ad to count. I’ve seen enough studies to show how the human eye works. It goes from left to right and it doesn’t scroll down very far. So if you’re trying to save money and end up in position six or seven, people will never see you because you’re too far down the page.
When you’re writing text for the pay-per-click listings, create different versions. You’re limited in the number of words you use, which is why you need a good copywriter. You could do it yourself but it is probably better to pay a professional.