This is part of the Development Overview Series.
A common question that a developer has to answer throughout the life of a project is how much the project is worth or how much they believe it will sell for. That number determines the feasibility of a project and whether or not a project will be able to obtains loans and/or attract investors. Ultimately, a project is completed when the rubber meets the road and all the assumptions become real sales numbers. Having a good sales and marketing plan prior to a project being completed will help generate the most interest and demand for the project and consequently the highest sales price.
There is no one-size-fits-all marketing solution. Strategies can vary greatly depending on budget as well as target demographics, but the end goal is to maximize the value of the project by generating demand and obtaining higher sales prices. There are so many different marketing tools and platforms readily available these days that it is easy to get lost in all of the various options that may not be appropriate for the target demographics you are trying to reach. It is important to be purposeful when choosing a marketing plan to determine whether or not the service or platform chosen can effectively produce the results you are looking for. For example, while social media is growing in popularity as a marketing tool for products and services, if your target demographic is still more comfortable using traditional print media, it would be more effective to take out print ads in the local newspapers than to put your efforts into Facebook or Twitter. On the flip side, as the use of the internet for searches becomes more commonplace, creating an online marketing campaign can be a very cost effective way to reach a larger audience. When developing your marketing strategy, it is important to keep the target demographics and purpose in mind because by bringing awareness of your company and projects to your specific target demographics you can generate the most interest and demand to drive up your sales prices.
While a marketing strategy is good for branding, raising awareness of the project, and bringing in prospective buyers, it is the sales team that engages the buyers directly and closes the sale. It is important to put together a qualified sales team that matches the culture of your company as they are the representatives who will be interacting with your buyers the most. A good sales team will be experienced in the sales process and someone that the buyers will be comfortable working with. Because the sales team will be working closely with all the different prospective buyers, it is also a good opportunity to receive feedback about the project and find ways to improve on the next one. The sales team will also be able provide the information needed to price the project appropriately and give regular updates on the current state of the real estate market.
Having a good sales and marketing plan are two things that go hand in hand when it comes to obtaining the best sales price for your project. The goals and strategies may change depending on the type of project as well as what stage the project is currently in. For example, it is important to start building your brand and credibility early on, but as a project gets closer to completion and becomes ready to sell, the marketing strategy may transition to bringing maximum awareness and visibility to the specific project. In the end, it’s all about finding a cost effective way to reach target demographics and turn them into prospective buyers and hopefully a closed sale.