Top 5 Strategies for 2014

1. Studying the market conditions specifically and regularly. If you only watch the news, you’re waiting too long to develop a plan. The news, by its nature, reports on events which have already occurred. Therefore if you’re looking backwards with the news as your primary information source, you’re likely reacting to the market rather than making it. Our clients are informed of market conditions and market “voids” so that they can move to fill them with their new projects and phases.
 
2. Marketing to SPECIFIC buyers, instead of ALL buyers. In the era of “build and they will come” we were able to get by with newspaper ads and billboards. A lesson learned during the recent recession was how to make more with less in the marketing department, and what we’ve found is that we’re actually spending far less per unit, and exceeding sales from “back in the day.” That is done by spending time identifying our market of buyers, and finding ways to speak to them affordably. Sometimes, we’re leveraging economies of scale for our clients, and other times, we’re simply creating a specific campaign strategy. Any way we do it, our clients are focusing on finding their buyers instead spending a fortune broadcasting their message to the thousands of disinterested parties.
 
3. Price for the Long Haul. Will prices continue to rise in 2014? Yes, we all agree that barring unforeseen circumstances, costs to build and prices to sell will continue to rise. With that said, our clients are setting strategies to make sure that their prices of today coincide with their plans for tomorrow. Rather than riding a wave and raising prices just for the sake of doing so, our clients are strategizing 1-2 phases ahead this year, to make sure pricing is sensible and intentional for their long term plans.
 
4. Make friends with your neighbors. Some of our best selling communities in 2013 had worthy competitors that helped drive business back and forth between each other. The best examples were the record setting years set by both the Battery Park Community and the Waverly Station Townhomes. Both communities spent nearly the entire year, sold out of existing inventory due to record setting demand they created alongside each other. Another lesson learned as we emerge from the recession is that we need to re-engage home buyers to the idea of building a new home (in general) and a great way to do so is collaboration.
 
5. Enlist strong affiliated partners. From Realtors to Lenders, from title companies to warranty providers, it is extremely important these days to have a strong supporting cast. If we have learned anything during our rise from the recession it’s that the nation is committed to keep history from repeating itself. Tightened lending restrictions, low appraisals, harsher inspections, stronger warranty requirements, and higher scrutiny on borrowers surround the industry today. While it’s become less of a challenge in some ways since the valley in 2009 and 2010, that is primarily due to the increase focus the consumer has on controlling their own destiny. If you want to make sure you purchase agreements lead to closed deals, it is more important than ever to be confident in your affiliated partners.
 
If you’d like to build a successful marketing and sales strategic plan for 2014 and beyond, feel free to reach out to our team at www.KWNewHomesGroup.com or by emailing us here: scott.phillips@kw.com.

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