A formula for selling your luxury home in 2018
Are you puzzled why you haven’t been able to sell your home?
Would you like to talk with an agent that has a plan to market and sell your home?
You have a unique home and it will require a unique buyer; you’re not selling a Ford, you’re selling a Ferrari. To find Ferrari buyers, you’re going to have to identify them then market to them. We suggest you start with a video that shows your Ferrari buyers why they need to come to your home and test drive your home.
Best of US Homes formula for selling your home in 2018
Identifying your Buyer
The Numbers: Past sales data indicates that there’s a 58% probability that the buyer of a luxury home will come from the homeowners currently living within a 3-mile radius of the home for sale, a 22% probability that they currently live in Alabama but outside the 3-mile radius and a 20% probability that they will come from out-of-state. We also know that the average home owner lives in their home for an average of six years before considering the purchase of a new home.
Using MLS past sales data, we can identify all the homes and homeowners that have been purchased within greater Birmingham in any price range or any neighborhood from 2000 to 2011, thus having lived in their homes for over six years. This will produce your Target Market #1 for your home. As an example, this data would produce a list of 24,200 potential buyers for $750,000 to $3,000,000 homes in the greater Birmingham market. That might seem like a substantial number, but it effectively reduced your target market from 460,000 Birmingham households to 24,200.
There are over 3,600 active real estate agents in the Birmingham market, 150 of them sell 96% of the homes priced at $500,000 or more. There’s a 90% probability that an agent other than your listing agent will bring your eventual buyer to your home. These 150 agents are your Target Market #2.
There’s a 22% probability that your buyer will come from outside the three-mile radius but within the state of Alabama and a 20% probability that your buyer will be from out of state, these two groups are your Target market #3.
If you have your home up for sale, there’s an 85% probability that you’ll be in the market for a new home once you sell your current home. There are currently 631 listings in Birmingham for homes valued at $500,000 or more, 536 of those sellers will be in the market for a new home, 311 of them will buy a home within a 3-mile radius of their current home; this is your Target Market #4.
Marketing to your Target Markets
Facebook Advertising: The Pew Survey found that 79% of adult Internet users logged into Facebook at least once a week and spend an average of 20 minutes per visit. By uploading our 24,200 Birmingham homeowners (Target Market #1) into a Facebook custom audience we can direct advertising for your home directly to your potential buyers. The ad will consist of a two-minute intro video of your home as well as a link to a dedicated webpage featuring an eight minute “walk and talk” video presentation of your home. Our website will then gather the IP address of the viewer of your video and remarket your home to them throughout their continued internet use.
This is a link to the Facebook intro video that we are using to drive traffic to our eight minute “walk and talk” video on Larry Lemak’s home at 2801 Cherokee Road.
This is a link to the featured listing on our website that includes the eight minute “walk and talk video”. We’ve had 509 page views from 239 unique visitors of this video over the past two weeks; we’re building market awareness.
Such a program creates awareness of your home and even if these viewers aren’t in the market for a new home they may know someone who is looking for a home just like yours, thus potentially reaching your Target Market #3. Through awareness you’ll generate showings and showings lead to a sale.
Other Agents: There’s a 90% probability that an agent other than your listing agent will bring your buyer to your home. These 150 agents, your Target Marker #2, are highly motivated to swiftly find the perfect home for their buyers. Each of these agents need to be made aware of your home, this can be achieved by sending each of these agents a brochure on your home and a link to your “walk and talk” video presentation. This can easily be achieved through email and can be repeated at any opportune time.
Zillow and Trulia: 90% of all US real estate transaction begin on the internet and the biggest players are Zillow and Trulia. This is particularly true for out-of-town buyers, your Target Market #3; ask yourself if you were moving out of state where would you start your search and what would you look for? Professional photography, drone photography and video are a must. Zillow and Trulia allow a 2-minute video on each listing, those listings with a video are shown at the top of the presented homes relative to the website visitors search. You must take advantage of this opportunity to gain exposure of your home.
Current Sellers are Future Buyers: These current sellers, your Target Market #4, are easily identified by downloading their names and addresses from the MLS listings. You will add these names to our Facebook custom audience as well as send them a “Just Listed” postcard making them knowledgeable of your home. You will also encourage them to sign-up for your mailing list on your dedicated website.
Friends and Family: The average American has an email list of 649 addresses consisting of friends and family, church, synagogue, and club members. You know somebody who knows somebody who might be interested in your home. Why not send them a link to an 8-minute video of your home.
By Invitation Only Open House: This is not right for all our listings, it works best with an empty home. We bring your Target Markets together for a By Invitation Only Open House. This will consist of your Target Markets #1, #2, and #4; both qualified buyers and agents. Our objective is to continue to build on our market awareness. We use Facebook “Events” advertising, direct mail and email to invite your Target Markets to your Open house event.
From Marketing to Selling
Your primary goal is to get prospective buyers through your front door. If your home is priced right and presented right, it will sell but you can accelerate the process with some on-hands involvement.
Predictive Analytics: Why do some homes sell quickly, and others linger on the market? By using Predictive Analytics, you can compare your home to those homes that have sold and those that have not sold in your neighborhood and determine the probability that your home will sell in the average days on the market for your neighborhood. The MLS sales data provides over 500 data points to compare that will result in a 90% accuracy as to how long it will take your home to sell at any given price. It’s then your decision as to what your priorities are; get top dollar or sell and move on to your next dream.
Showings: Showings lead to sales; a potential buyer and their agent preview you home to determine if they have further interest. We have one of our agents attend all the showings of your home; first we need to protect your property, second, we want to gain feedback from the potential buyers, third we want our agent present to answer any questions and finally we want our agent to know the buyer and their reactions should we enter negotiations. This practice is contrary to the real estate industry standard; less than 5% of listing agents attend their showings.
The real estate market is changing as the demographics of our city, country and world are changing. See my blog on The Outlook for the Luxury Home Market in 2018 and beyond at www.BestofUSHomes.com. Technology, big data and the Internet provide us with sales tools that did not exist 10 years ago. Best of US Homes is leading the way, we’re going to change the way luxury homes are sold in Birmingham, we’d like to sell your home.
If you’d like to have us market and sell your home give me a call.
Invite Kerry to speak to your group about the changing Luxury Home Market in Birmingham. BestofUS.firstname.lastname@example.org 205 919 6006
Kerry Grinkmeyer is a real estate agent in Birmingham, AL specializing in the marketing and sales of luxury homes. Kerry's a retired financial advisor, he sold his firm, one of the largest in the Ameriprise Financial Advisor system in 2005 to his son, daughter and nephew. Now he's building one of the largest boutique real estate agencies that he'll eventually sell to his grandchildren. He the author of the children’s book The Christmas Web- A Family Christmas Tradition. Kerry competes in the Senior Olympics in to 50M, 100M and 200M dash as well as the 5k and 10k time trial cycling events.
Kerry offers you his financial background, knowledge of the community, love of business and family and energy to assist you in one of the most important financial decisions you'll make in your lifetime.
205 919 6006
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