Issue link: https://read.dmtmag.com/i/161166
MARKETING CONSULTANT What Homebuyers Want – and Why Now is the Time to Act! BY SCOTT STROUD Finally, we can say it: It's a good time to be in housing. And it's a great time to be in factory-built housing. If you've been watching recent housing industry numbers, you know that: • Existing housing inventories are depleted; • New home starts and on the rise; • Mortgage rates are inching up; • Rental prices are skyrocketing (as many community owners know); • Family income is has increased nearly $2000 in the past three years; • Consumer confidence is rising and people are buying new homes. But turning facts into sales is another matter altogether, isn't it? So, let's drill a bit deeper to find some handles to use in our own marketing and sales approach. A recent report by Builder Digital Experience (BDX) titled "New Homes v. Used" shares some interesting data that will help. (Download the full report at: https://builderradio.infusionsoft.com/app/form/journal) Know your Competition As a prelude, here are a couple of housing statistics that you may not be aware of. First, the average age of a used home on the market today is 37 years old. That means that either someone has just sunk a lot of money in remodeling the home and needs to recoup their investment, or they haven't… and the home will need extensive upgrades. And even if the home has been updated, it will most likely not be nearly as energy efficient as your new home. And then there's the wiring, the plumbing, the foundation… Age takes it's toll, and that's what you're competing with! Secondly, the average fair market rent for a 3BR home is $1,266/mo. And it's on the rise. It may be more or less than that in your area, but it probably follows general local housing costs so will most likely be more to rent than to buy. That makes owning a new home that much more apSEPTEMBER 2013 24 THE JOURNAL pealing today. One more statistic you should know: 54% of buyers on the market say they are receptive to buying a new home versus used home, particularly when they consider the options available. But wait – it gets better… Why Buyers Are On the Market Before we address what they want, let's talk about the 'why' question – Why are are buyers on the market now. The BDX report revealed three big reasons that are bringing buyers back onto the market: 1. Tired of their current homes 2. Attractive housing prices 3. Low interest rates No surprises there, but consider that 2/3 of these top reasons are temporary advantages – both housing prices (new and used) and interest rates are climbing. That means a window of opportunity to act now to draw these buyers into your sales center. But it's Reason #1 we should focus on, because that's the real reason – the emotional hot button – that will motivate buyers to take action. It's been a long, hard recession. Many of our prospects have been stuck in homes that are too small, too old, too cramped or too crowded. They are tired of waiting and they simply can't stand the thought of staying put a minute longer than they have to. So they're out there looking – and they're motivated to move now. How should the affect your marketing message? By identifying with their emotional need to move, we can build rapport from our very first impression. "The wait is over – Come see your new XZY home!" "Isn't it time to put your family in a new XYZ home?" "Looking for a new home? The time to act is now!" Messages like these attract buyer's attention and, in effect, validate their feelings and give them permission to act. They align you with your prospects. And that's a compelling reason for them to follow up with you rather than the guy's down the street. It's always been true, but never more so than now, that "People buy on emotion and justify with logic." So your marketing and sales messaging should lead with emotion, then follow up with facts and logic to support the purchasing decision. What Buyers Want The report referenced above listed four key purchase considerations that are front of mind with buyers: 1. Quality of construction 2. Safer Neighborhood 3. Better Floor Plans 4. Low Maintenance and Operation Costs Do you see a golden opportunity here? Manufactured housing excels in quality of construction. Our newer floorplans are cutting edge in efficiency of design and comfort. And low maintenance and utilities? What other form of housing can touch us, especially for the price? And when retailers are working hand in glove with high-quality communities, we can offer the whole package at an extraordinary value. Be careful, though, not to forget the emotional component by going straight to 'just the facts, mam'. Quality of construction equates to safety; security; peace of mind. Better floor plans means greater comfort; livability; privacy; personal satisfaction. Lower maintenance equals more free time to enjoy life. Lower utility bills means more money in their pocket to spend on themselves. So, you message again should address the 'why' behind the 'what' – the emotional trigger that will motivate your prospect to become your buyer. In essence, they're buying a lifestyle. That should be what you're selling. It's Time to Act… Yes, that's the message we should be conveying to buyers – now is the best time that there will probably ever be to buy and own a new home. All our messaging should address why that is so and how 28 \