How To Sell More Property In The Current Lacklustre Market
It is a well-known fact that there is currently an oversupply of properties in all sectors of the market. With the economy in its doldrums and an overall soft property market prevalent these past couple of years, more and more developers are seeking new ways to sell their property units. Before we explore how to sell more property, let’s examine some of the key factors affecting the property market.
4 Key Factors That Drive The Property Market
Demographics concern the data that describes the composition of a population such as age, race, gender, income, migration patterns (eg. rural to urban) and population growth. These statistics are an often overlooked but significant factor that affects how real estate is priced and what types of properties are in demand. Major shifts in the demographics of a nation can thus have a large impact on property trends spanning several years, or even a decade.
For instance, the Baby Boomers who were born between 1945 and 1964 are an example of a demographic trend with the potential to significantly influence the property market. The transition of these Baby Boomers towards retirement is one of the more interesting generational trends in the last century. Needless to say, the impact and retirement of the Baby Boom generation, which began back in 2010 is bound to be noticed in the market for decades to come.
There are numerous ways this type of demographic shift can affect the real estate market but for an investor, some key questions to ask may revolve around the following issues-:
- How would this affect the demand for second homes in popular vacation areas as more people start to retire?
- How would this affect the demand for larger homes if incomes are smaller and the children have all grown up and moved out?
Such questions can give developers an insight as to how this segment of the market might evaluate their property investment choices in terms of the type and location of potentially desirable real estate investments, long before the trend started.
Interest Rates and Financing
The current strict loan approvals practiced virtually by all banks and financial institutions naturally stem successful purchases, especially among first-time homebuyers.
Another key factor that affects the property market is the overall health of the economy. This is generally measured by economic data such as Gross Domestic Product (GDP), employment data, manufacturing activity, the prices of goods, etc. Broadly speaking, when the economy is sluggish, so will the property market be.
Government Policies or Subsidies
Finally, legislation and regulatory bodies are also another factor that can have a sizable impact on property demand and prices. Tax incentives such as Real Property Gains Tax (RPGT), etc. besides allowable deductions and subsidies are some of the ways that the Government can temporarily boost demand for real estate.
Strategies and Tactics to Stimulate Sales Now
The decline in the industry’s sales performance is more attributable to external factors such as the above and much less due to any lack of consumer interest in property.
Therefore, what actions can developers take now to generate the sales for today? Obviously, no developer is going to just fold their tents and hang up a “Gone Fishing” sign while awaiting “The Recovery” to come around, right?
Here are some strategies to consider:-
1 Power Up Your Sales Team
A common sales objection in relation to property purchase right now is:- “The economy is too uncertain right now. I’ll wait.”
Property developers may consider providing professional sales training to their team on how to successfully handle this and other objections that most sales people fear will be the “silver bullet” that kills their chances for a sale.
At our 7 Habits of Sales Champions workshop, we cover among other things, various principles that include:-
Relationship selling. Successful sales efforts depend first and foremost on trusted relationships that sales people develop with prospects over time. The basis for trust is empathic listening.
Importance of financial qualifications. When prospects say that they like the property and that it meets their needs, the only valid reason for them not to buy would be due to a lack of money (which should be tactfully established if necessary, early on during the discovery stage of the sales process, rather than at the last minute.)
Understanding the prospects’ mindset. When financially qualified prospects who genuinely like the property offer “objections” to buying it, what they are really doing is avoiding the need to make large financial decisions because they are afraid of making a mistake. Sales people thus need to be trained to explore the prospect’s underlying fears and address them.
Professional attitude. Your team must act as professional counsellors who help prospects make good ownership decisions for themselves. They must step into the shoes of the prospect and see the world through their eyes.
Firstly, they should conclude in their own mind that the property is suitable based on understanding the prospect’s needs. Then, they could ask guiding questions that help prospects explore and clarify their objections. Finally, they could advocate the property and lead prospects toward concluding for themselves that they would want to proceed towards ownership.
Memorised scripts. Once appropriate scripts are written and agreed upon, sales people must memorise and practice them out loud so their delivery is easy, natural and spontaneous – as if there were a teleprompter in their head. Top-producing agents have at their command – different sales pitch closing and will make multiple closing attempts — often five or six or more — before ultimately succeeding.
2 Find Ways To Differentiate From The Competition
Essentially, if you have no unique point of difference, you’re dead. You cannot command the pricing. Here are several ways to differentiate property projects:-
Product differentiation – What unique features or quality attributes do you have?
Service differentiation – Do you have a simple, easy booking system? Are there added services that you offer? Is the entire customer experience excellent?
Relationship differentiation – Is there competence, credibility, courtesy and care as well as responsiveness and excellent communication?
Reputation Or Image differentiation – Do you have a strong brand? How do customers perceive your brand? Do you have a reputation for excellence, fast delivery, etc?
Price differentiation – Can you be the lowest cost developer and provide value for money?
3 Customised Promotions
Are you using data analytics to better understand your past and potential customers? Can you design different promotions to attract different customer segments? For example:- To investors, could you offer units that come with added features? Also, for the same budget, offer wedding gown plus top-class photography for first-time buyers who are about to get married to host their wedding photography at the premise of their purchased units for example?
4 Irresistible Contest
Just to be different and in order to create excitement and stimulate action, how about offering lucky draw prizes for the first 50 buyers who put up the specified down payment? And, instead of giving free kitchen cabinets, etc. why not give them the chance to win a great prize. So depending on budget, target market and so on, the prize could be Jaguar XJ or an Alaskan cruise for example. How cool is that? These are some general ideas which I hope you will try out. Would love to hear your results. All the best.
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