May 9, 2010
Marketing Real Estate | Marketing Real Estate Now That The Tax Credit Giveaway Is Over
For the past few months, real estate professionals have been urging buyers to hurry up and get their offers in by April 30 in order to take advantage of the Federal tax credit. The message has been “If you don’t act now, all is lost.” Which is very similar to the old proverb: “He who hesitates is lost.”
I did a little research and found that the rest of the quote is: “Swift and resolute action leads to success; self-doubt is a prelude to disaster.” The proverb goes back to ‘Cato’ (1713) by English essayist and poet Joseph Addison.
That surprised me, because I thought perhaps it came from something like the Revolutionary War, when hesitating might mean losing your life.
The phrase has been used many times by authors throughout history. Interestingly, one of the more common uses referred to ladies who couldn’t make up their minds to accept a suitor.
But back to real estate and the loss of the Federal tax credit. I think many agents are afraid that sales will completely dry up with it gone. But why? Consumers were buying homes long before anyone even thought of a tax credit.
They buy homes because they want and need them, not because the taxpayers are going to give them free money. Some may have hurried a bit more, and real estate agents may see a little slump for the next few months before the next wave of first-time buyers is ready to come into the market, but they will come.
That means real estate agents need to continue marketing, but with a different focus.
All buyers – first time or 10th time – need to be shown that the time to buy really is now.
In my work writing blog posts and marketing copy for real estate clients, I often have occasion to view sales statistics. And what I’m seeing, especially in areas that were hard hit by the foreclosure crisis, is that while average prices have been slowly creeping upward, those foreclosures and short sales are still holding down the overall average prices that consumers see reported in the news. Non-distressed homes are selling for considerably more than lender-owned homes and short sales.
And, since distressed properties make up a larger proportion of sales than listings, in some areas it might not be long before those bargains are gone and prices begin to rise more sharply.
Then there’s the interest rates to consider. Financial experts are warning that interest rates are going to rise.
Lower prices + low interest rates mean that those who buy today could be strutting like proud peacocks a year or two from now when they’re locked in to a low payment – while those who hesitated are faced with higher prices, higher interest, and much higher payments.
We can’t say that “All will be lost,” because paying more for a house isn’t a life-threatening disaster, but it could mean that those who hesitate now will be forced to buy smaller houses, maintain two incomes, or forgo other pleasures in order to keep up with house payments.
Or, they might have to remain renters – possibly for life.
Marte Cliff is a freelance copywriter specializing in writing for real estate and related fields. She offers custom copy for websites, email campaigns, press releases, postcards, direct mail letters, newsletters, and more.
Marte also offers pre-written real estate letters for agents who know they need to prospect but just don’t have the time or desire to write their own letters. Read about her first time buyer letter set at http://www.copybymarte.com/pro/firsttimebuyer.html
For those who prefer the “do it yourself” method, Marte has a free report on how to organize and and write a “drip campaign” that will build trust and reel in new clients. Just visit her at http://www.copybymarte.com/dripmarketing.html to request your copy.
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5 Comments on Marketing Real Estate | Marketing Real Estate Now That The Tax Credit Giveaway Is Over »
May 14, 2011
Heath @ 2:09 am:
Brett Thanks for opening this subject, Larry thanks for publishing it.The US system of marketing real estate is clearly broken or at least obsolete compared to Australia. There is no excuse for a million dollar properties to be so poorly marketed in the US. I have worked with 2 brokers who ask sellers to pay for photography and get reimbursed at closing. These sellers don’t seem to mind at all when they cut me a check while other brokers are complaining that they cannot afford photography and they are loosing listings to those who can. I have shot a few videos with sellers present and they are thrilled with the process and the product. I am sure they would participate in the cost when they know the upside to great marketing. Breaking the old ways of thinking in real estate circles may be harder than we think. Established brokers have made allot of money using the current system and when one pioneer broker goes out and shakes things up by providing (pro) video and other cutting edge marketing they risk becoming a black sheep who listings do not get shown by other jealous brokers. I know it sounds unbelievable but apparently it happens. Going straight to the seller may be the best solution. They control the money and can demand products and services if they know they exist. I am starting an ad campaign targeted at sellers. I am sure it will anger some brokers when their clients call and ask about having a video done of their home but we all need to take some risks if we are going to change the way real estate is marketed.
June 4, 2011
tribeca_belle @ 12:48 pm:
Thank you for that fair and balanced article.
June 29, 2011
Arnold @ 5:07 am:
The problem with this is that free market was never in play. HUD and FHA were backing loans that lenders would never have made if it was a free market system. But the lenders could make loans to people that shouldn't get loans, make a bunch of money, then sell them to Freddie and Fanny May. The lenders had nothing to loose. People that had no business buying homes were able to because the government was helping them. So the demand on homes was higher then the supply so the prices went up, once people started falling behind and couldn't make the payments lots of foreclosures came on the market, also credit got tighter. Then the supply was higher then the demand so prices came down.
This wasn't a free market caused problem, this was a government caused problem, but you'll never hear that on the nightly news.
At one time up to 40% of the loans that Fannie and Freddy were buying were sub-prime loans.
There was a lot more to it, but this was the biggest part.
July 17, 2011
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October 8, 2011
J R @ 11:53 am:
The problem with this is that free market was never in play. HUD and FHA were backing loans that lenders would never have made if it was a free market system. But the lenders could make loans to people that shouldn't get loans, make a bunch of money, then sell them to Freddie and Fanny May. The lenders had nothing to loose. People that had no business buying homes were able to because the government was helping them. So the demand on homes was higher then the supply so the prices went up, once people started falling behind and couldn't make the payments lots of foreclosures came on the market, also credit got tighter. Then the supply was higher then the demand so prices came down.
This wasn't a free market caused problem, this was a government caused problem, but you'll never hear that on the nightly news.
At one time up to 40% of the loans that Fannie and Freddy were buying were sub-prime loans.
There was a lot more to it, but this was the biggest part.