Issue link: https://read.dmtmag.com/i/119220
DEVELOPMENT MARKETING Ask Eddie BY ED HICKS Why the big differences between the appearance and quality of Seniors Age 55+ age restricted m/h land lease communities, and non-age restricted ones? Frank D., San Mateo, CA That's a good question, and may be at the heart of out industry's failing marketing programs. Marketing this type of lifestyle to seniors is often completely different from selling to younger family home buyers. Typically, so-called boulevard m/h and modular retailers focus their sales efforts towards the lower cost of maintaining a home to low and moderate income home buyers, while community based developer/retailers sell the lifestyle, which is often oriented towards a "resort" like living. Although housing costs are important, they are not often the primary focus of seniors communities. The boulevard retailers mantra is "when are some credit worthy home buyers going to come to my sales center today?" And, how can I convince them that m/h land lease community living is better than living in a crowded, high density, noisy apartment building? How can I use the perception of lower cost living in a m/h community as a tool to sell homes? The community based developer/retailer says: "how can I show this nice couple the many advantages of living in a m/h land lease community, and that my homes are not cheaply built or unsafe in windstorms or earthquakes; that in time home values appreciate like site built homes, and that it's not "second class living?" Ideas such as total privacy due to the lack of common walls between homes, larger living areas, the missing flights of stairs to hurdle, parking my car next to my home, my home individualization, sharing community common APRIL 2013 28 THE JOURNAL areas and amenities. In fact, the boulevard retailer sells lower housing cost, the community retailer sells lifestyle and value. Although cost is a factor, it is not the most important. Which one works best? Just take a look around. What do you see? Does what you see around you make a difference in your attitudes towards m/h and or m/h communities? What effect do you think it has on others? Family and non-age restricted community appearance and condition tend to fade in time, and for this and other reasons the homes often, do depreciate. Lack of viable financing options creates a lowered home value as the homes age, resulting in a lack of interest in maintaining the homes and the homesites. The ability to finance the home purchase by the family buyer is no doubt still a problem, and since most seniors either pay in cash or have substantially higher down payments and credit scores than do the family buyers, financing is not usually an obstacle to home sales to them. Age restricted communities because of the residents "pride of ownership" maintain their homes appearance and condition over time. The staff and management fairly and efficiently maintain the common areas, amenities, and enforce the terms of the lease. These two ever divergent types of m/h communities can either help or hurt new development possibilities in a given market area. It may be very difficult to convince a planning and zoning board in a given area of a developer's intent to build and maintain a high quality community if there are no good examples located anywhere in the area. Unhappy area voters often will turn out at public hearings to object to their perception of m/h living based on their knowledge of areas poor representative communities. On the other hand, the establishment and successful operations of higher quality communities in a market area, may often help to obtain entitlements necessary for new community development. And, it may help in obtaining reasonable densities, lesser restrictions on homes, and other possible governmental mandated controls of the new development. Perhaps the solution to increasing sales of homes to prospective family home buyers is to build communities and sell homes the way we do so seniors. With less focus on trying to make our homes look like site built, through the addition of questionable options and features such as high roof pitch, dormers, brick or stone facades, etc. which only add to the cost/price but don't increase the liveability or safety of a home. Notwithstanding the financing difficulties encountered by low to moderate income home buyers, perhaps we should be directing our marketing efforts to a better class of economically challenged home buyers. And, lets see if we can find ways to sell the quality of our homes and relaxed lifestyles in land lease communities for families, the way we do with seniors. How about it? Can it be done? T J Edward Hicks, Lic. Mortgage Broker, Lic. RE Broker, Consultants Resource Group, Inc.: (813) 3006150 45 years as mobile/modular retailer, manufacturer, developer, and manufactured housing resident.