Monthly Archives: April 2020

5 Keys To An Effective Real Estate Marketing Plan

When a homeowner decides to sell his home, he should interview potential agents, and have a thorough discussion, about, why he should hire that individual (what is unique, or better about their service, etc), etc. Once, one feels comfortable with the individual’s quality of character, integrity, ethics, attitude, aptitude/ skill – sets, negotiating ability, and ability to customize an approach, to fit a specific property, it is essential to, take the time, and make the effort, to, understanding the basis, reasoning/ rationale, etc, of that representative’s marketing plan, and what will be included, and any necessary teamwork, involved. With that in mind, this article will attempt to, briefly, consider, examine, discuss, and review, 5 keys to an effective marketing plan.

1. How many Open Houses (Broker, and Community)?: Will Open Houses, be a component of this approach and planning? How might they, be marketed, introduced, and useful, in the overall marketing, of the client’s home? Should the house, be staged, or any other areas, addressed, and considered? How will your chosen, agent, introduce your home, to other local agents? Will they use a Brokers Open House? If a public, and/ or community one, is planned, how will it be promoted, where, and, who, do you believe, is the niche – market, for the specific property? What will the professional do, which differentiates his, from what others do, and make a significant, positive impact? How often will they be conducted/ held?

2. Where/ how promoted?: How will your home, be promoted, marketed, etc? Will your representative, explain his reasoning/ rationale, explaining, why, he will pursue a specific, course, and plan of action?

3. Pricing philosophy: After, well over a decade, as a Real Estate Licensed Salesperson, in the State of New York, I have witnessed, certain agents, who suggest, unrealistically, higher listing prices, in order to try to buy a listing. Ask individuals, when you interview them, what their pricing philosophy, is, and, why, they feel, it works best. Pricing is a significant component of the overall marketing system/ plan!

4. Agent/ client, regular discussions: How will the agent, you hire, interact, with you, and how, often, will, both of you, regularly, discuss, the process, etc, which are relevant, to the process? Avoid anyone, who won’t be ready, willing, and able, to fully communicate!

5. When price adjustment, and why?: How smoothly, effectively, and in a timely manner, will, price adjustments, be made, and what will be the core reasoning/ rationale?

The more, you and your agent, remain, on the same – page, the better, you can proceed, with the necessary degree of teamwork, to make a quality marketing program, even more meaningful and effective! Remember, for most, the value of their house, is their single – biggest, financial asset, so, do all you can, to follow a smart, course of action!

6 Quick Tips For Writing Effective Property Listings

A lot of potential buyers look to the Internet and magazine and newspaper listings when looking for property. For this reason it is imperative that your property description is as well written and attractive as possible. The last thing you want to do is waste valuable advertising space and money with a boring listing. Here are some tips to make you listings effective in selling a property:

1. Start with a Catchy Subject Line

As with most things you have a limited period to grab a potential buyer’s attention. When writing property listing, the subject line is where you make the first impression and it is essential to make it eye-catching. Don’t use words like “3 bedroom” or “2200 sq. ft.” or the property’s address in the subject line, as this information will be displayed in property features and facts section. Rather use the words like spacious or roomy to describe this feature. The sentence shouldn’t be long, so use your words wisely.

2. Sell The Area In Your Description

The description should rather focus on information regarding location, such as the fact that it is close to the beach, or 20 minutes from the city center, close to schools in the area and other amenities. This will give the potential buyer a better idea of where the property is, what lifestyle it offers and why it is such a good buy. If you don’t have a dedicated area to add features and facts about the property you can use bullet points to highlight the amount of rooms, bathrooms, garages etc.

3. Words to Avoid

A recent study showed that words like “curb appeal”, “move-in condition”, and “landscaping” are better to use than words like “motivated seller”, “good value”, “as-is”, “clean” and “quiet”.

4. Highlight the Positives

Words like “small garden” imply a lack of space, but instead of stressing the negative, rather turn that into something positive like “easy-to-maintain garden”.

5. Use Good Language and Grammar

Show your professionalism by ensure that the language and grammar you use are correct. Let someone proofread you copy and run it through a spell checker before you publish it.

6. Avoid Boring Cliches

Words like “gourmet kitchen”, “luxury bath” “bargain” and “cozy” are very commonly used. To stand out from the crowd you need to be unique in every way.

When you are listing properties, it’s vital that your content are presented in a way that is attractive to potential buyers. Include as much information as possible and remember that all this translates into a higher likelihood of a sale.

How to Effectively Market Your Rental Income Properties

Anyone who has been engaging in real estate investing for any amount of time has surely tried to sell an investment property at one time or another.

It’s called marketing. Over my thirty-year real estate career, I certainly did my share. And though my attempts didn’t always produce a successful outcome, the experience taught me a few things about marketing rental income property I would like to pass along.

Most are common sense, but mentioned as a reminder because there are realtors and sellers out there who need to hear it. The remaining tips are more subjective, but included to help you consider what might be a more effective marketing approach than you’re using.

Foremost, never make your marketing packages too vague. When you omit important financial data, it makes it very difficult for a buyer to adequately determine whether or not it presents a good investment opportunity. And this will typically lead to a further exchange of data with a buyer or agent that, at the very least, will be time-consuming, and at the worst, could cause a buyer to lose interest in the deal altogether.

Secondly, resist the temptation to skew the property’s financial data to appear overly optimistic. Perhaps rents can get raised, for instance, and you want to reveal that. But if you over-inflate what you deem could be future rents, you risk losing your credibility with the buyer, or may end up wasting your time in a deal that never has a chance anyway, once it’s subjected to the buyer’s due diligence. Keep your estimated assumptions realistic.

Thirdly, and this is a bit more subjective, don’t present marketing packages that contain everything but the proverbial kitchen sink-at least not in your initial presentation. In my opinion, distributing more than a three-page property report at your local investment club meeting or in response to a telephone inquiry, is overkill. Remember, you’re just trying to generate a response from credible investors with a valid interest; a more comprehensive set of reports can always get presented during subsequent exchanges.

Okay, now let me show you the essentials that worked for me. For simplicity, I’ve organized them by category: the numbers, and the reports.

The Numbers

Aside from sale price (which is a given), you’ll want to provide an itemized break down for the property’s annual cash flow, and computations for at least two rates of return.

1. Cash Flow

Cash flow is crucial because it’s essentially what the real estate investor is purchasing in the rental property. So compute it for at least the first year of ownership by focusing on the following three financial elements:

  • Gross Rental Income
  • Operating Expenses
  • Debt Service

2. Rates of Return

The rates of return (at least the two listed below) are important for the investor to determine whether or not his or her yields get met as well as providing a good way to compare the property’s financial performance and value to other similar-type rental properties in the market area.

  • Cap Rate
  • Cash-on-Cash

The Reports

Here are two reports I commonly used for initial inquiries. Both clearly show the rental property’s cash flow, and each include the cap rate and cash-on-cash rates of return. So they are informative, easy to read and understand, and straight to the point. Consider them as examples.

1. Marketing flyer

This announces the listing to the community-at-large (i.e., investment meetings, call-ins, and inquiries from colleagues). (Sample available on my site).

2. APOD

This enables you to show your own investor-customers a likely scenario during the first year of ownership. (Sample available on my site).

In a Nutshell

An effective way to market rental income property is to consider the process in two stages: the initial presentation, and the subsequent follow-up. Keep the initial presentation concise; even one report with enough data to reveal the property’s description, estimated cash flow, and investor’s rate of return should be adequate to garner interest from credible buyers when they exist. And reserve all the other reports (e.g., acquisition funds, proforma income statement, rent roll) to the subsequent follow-up exchanges.