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 Marker #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 or 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 you can direct advertising for your home directly to your potential buyers. The add should consist of a carousel of 10 picture of your home as well as a link to a dedicated webpage featuring an 8 minute “walk and talk” video presentation of your home. Your website should then gather the IP address of the viewer of your video and remarket your advertisement to them throughout their continued internet use.
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 listing.
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.
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 home 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
Thanks for your consideration,
Kerry J. Grinkmeyer
Albert Einstein is widely credited with the saying: “The definition of insanity is doing the same thing over and over again, but expecting different results”
“I intend to change the way luxury homes are sold in Birmingham.” Kerry Grinkmeyer
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