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Transcript
Lessons Learned in
the Real Estate
Development Process
Jennifer Nevitt Casey
Bravo Strategic Marketing, Inc.
www.BravoStrategicMarketing.com
Economics
• Supply
– The most innovative product design will be
absorbed the most quickly in the marketplace
– Product design should focus on
customer’s “Quality of Life” solutions like
sufficient parking and hot water, security,
abundant natural light and storage, water
pressure, noise abatement and energy
cost reduction
Economics
• Demand
– Location, Location, Location
– Employment Drives the Success of
Housing
– Fluctuation in Interest Rates Creates
Fluctuations in the Depth of the Market
– The real estate developers with the most
talented teams will sell the most inventory
with the fewest discounts, talented teams
are paid well with tremendous
compensation packages
Economics
• Demand
– Commissioning a third party market
research study/ due diligence is the most
important step a real estate developer
takes after the land is under letter of
agreement
– A consumer’s ease in finding, viewing and
visiting your product is essential for you to
capture the available demand in the market
• Internet 24/7 Global Market Place
Product
• Product Offering
– Until your product offering is locked down,
don’t open a sales center or advertise your
product; losing credibility in the market
will slow velocity exponentially
– Focus your energies on opening the sales
center and model with a locked down
product offering; the market is more
sophisticated now and won’t buy what it
cannot see
Best Practices
• Sales & Marketing
– Product design should focus on
customer’s Quality of Life solutions like
sufficient parking and hot water, security,
abundant natural light and storage, water
pressure, noise abatement and energy
cost reduction
– Measure the results; we cannot manage
what we cannot measure
Checklist
• Product Presentation
– Build the infrastructure; roads and parking
to the sales center and model park – ease
in parking is critical to the success of
sales
– Invest in fabulous state-of-the art signage
and landscaping; your curb appeal defines
your success in sales
– Open the Sales Center
– Open the Model Homes
Hurry, Hurry………….. WAIT!
• Market Introduction
– “Burning off the bliss”- many developers
emotionally attached to their deals are anxious
and push to start advertising and marketing in a
state of fear well before the sales center and
product is ready to sell. Don’t waste your time,
money and precious energy on announcing to the
market too early. A patient, well orchestrated
plan that goes to market after the product
specifications are locked down will have the
market’s respect.
Best Practices
• Sales & Marketing
– Sales & Marketing budgets today are
approximately 10% of Gross Sales
Potential; no longer is 5% of sufficient
– Talent+ is a great tool used by Ritz Carlton
to profile potential sales team members
[www.TalentPlus.com]
– Be careful using ad agencies that insist on
their logos being predominant on all
collateral and marketing materials
PromotionResidential Marketing Budget Allocation
Labor- Sales Team
Real Estate Brokerage
Traffic Generation
Marketing Administration
Interior Design Interest Carry
Marketing Consulting Fees
Contingency
30%
20%
25%
3%
10%
10%
2%
100%