Marketing Unique Properties: Know Your Target Market.

By Rich Schiffer, REALTOR, e-PRO

(This article is part of a training series presented for real estate professionals, whether new to the industry or experienced, to help them discover, understand, and benefit from the tools that are available on-line.  For access to the full series, join the ActiveRain Technology Toolkit Training group.  If you have not yet joined the ActiveRain Real Estate Network, you may do so here.).

The Declaration of Independence put to words a concept that resounded with Truth - "...that all men are created equal..." - but this simple truth unfortunately cannot be applied to Real Estate.  I am not talking about the professionals within the real estate industry -- I may have my opinions about some practitioners, but I admit we were all created equal.  What I am referring to are the properties we are called upon by our clients to market.

All properties are not created equal. 

Many agents fail to realize this, and apply the same methods of marketing to every type of property they represent.  Some properties, by their very nature, however, require something different.  The underlying goal of the marketing is still the same - get the product into the awareness of potential buyers - but the methods for achieving the goal must change to fit the target audience.  Unique properties require a unique marketing plan. 

Historic Properties are a perfect case in point.

First, let me acknowledge that different areas of the world define "Historic" in different ways.  Along the Brandywine Valley, in southeastern Pennsylvania, for example, a 1750s farmhouse might come to mind.  In San Antonio, Texas, it might be an 1830s horse barn.  In Fairbanks, Alaska, it might be an 1897 Trading Post.  In European communities, with a much longer history, the age of the property might be counted in centuries, while a 50 year old property in parts of California might qualify as a local landmark.

Setting aside how the local market defines "historic properties," we can say with a high degree of certainty that the potential buyer for a 250 year old property fits an entirely different "profile" than the typical buyer of a comparably-sized piece of new construction, or the average resale property.

Much research has been done to assist Realtors with understanding the profile of potential buyers.  The National Association of Realtors (NAR) conducts an annual survey of transactions, compiles the demographic data, and develops the "profile" of that year's buyers.  Realtors across the country use this report, and other similar industry reports to help them understand the future direction of the market.  This allows agents and brokers to target their marketing, positioning themselves to capitalize on emerging trends.

Other industries follow their buyer profiles very closely, as well.  If the 19-27 year olds show the highest gain in disposable income, it stands to reason that a lot of consumer advertising will be aimed at that age group.  If a large number of older adults are about to reach retirement age, developers may begin to build more active adult communities, to meet the future need.  This sort of demographic trend-watching is often key to the ongoing success of any company.

Understanding the importance of market trends is only one aspect of successfully marketing a product.  That understanding has to be coupled with Practice, and Creativity.

Here is a comparison of common marketing practices, and how they might differ when marketing a unique property:

Marketing Practices:	Traditional Property	Historic Property
Internet Marketing:
Local MLS	Standard	Longer listing contract - marketing times may be considerably longer than the average days on market
On-line listing syndication services	Standard - listing posted to multiple high-traffic consumer sites	Enhanced features wherever possible
Email flyers	Standard - emailed to prospective buyers and local area agents	Purchase targeted email distribution lists
CraigsList, etc	Standard - with on-line flyer	Enhanced where possible
Property-specific Domains/websites	Static Property Information with lead / call capture	Enhanced -- Interactive, with frequent updates
Virtual Tours/YouTube videos	Slide-show style, sometimes full video	Enhanced, DVD quality video where possible
Blogs - Personal and Property-specific	Property Descriptions, Neighborhood features, etc	History of the property, etc.
Social Networking Platforms	Standard	Focused - Targeting Specific Demographic Groups.
Print Marketing:
Signs	Standard Yard Signs	Enhanced, higher quality, durable (lighted, when possible)
Mailings	Standard - local market area ("Just Listed" Postcards, for example)	Broader mailings - to target buyer profile, possibly international buyers
Flyers/Brochures/Property info sheets	Standard  single-page info sheets	Premium Quality, bound material DVD/CD ROM also
Newspapers(classifieds, open house announcements, etc.)   Magazines	Local Area Distribution   (house-hunter mini-mags)	Targeted Financial and Society Media also (WSJ, NY Times, LA Times, etc.) Specialty Magazines (Preservation Magazine, Old House Journal, etc.)
Face-to-Face Marketing:
Open Houses	Standard - inviting neighbors, local home buyers, brokers, etc	Invitational Events (cocktail parties, art shows, charity fund-raisers, etc.)
Sphere of Influence ("Do you know anyone looking for a ___")	Personal contacts - clients, family, friends, co-workers, etc.	Targeted outreach networking - doctors, lawyers, historic societies, film-makers, local politicians, etc.
Peer-to-Peer	Brokers Tours - Include Lunch, for example	Broker invitational - wine and cheese reception, for example.

On the surface, the methods may appear the same, but with an historic property, the search for the potential buyer may be more - much more - broad than the coverage area of the local MLS.  Specialized websites, tightly focused on-line social networking groups, and niche print publications may be needed to get in front of the buyer. To reach that buyer, a little creative, outside-the-box thinking may also be required. 

One of my favorite creative strategies is the Charity Art Auction.

• Partnering with a local charity, the local historic society, and local art school or gallery, an event is planned.  (This takes time to do right, and is one of the reasons that a listing contract for this type of property should be for a sufficiently long term.)
• Deep-pocketed potential donors are invited to the event, which raises funds for the selected charity.  At the same time they are bidding on select artworks, they are also viewing the home.
• A thank-you letter to attendees reminds those in attendance that the property itself is also for sale, and that if they or any of their family or friends purchases the property, the seller will make an additional donation (in the buyers' name, perhaps?) to the charity in the amount of ______ (a fixed dollar amount or a % of the sale price, whatever the seller agrees to.)
• An event like this also helps build a database of potential attendees for other events, and targeted mailings.

Other Resources for Marketing Historic Properties:

Social Networking:

Active Rain Real Estate Network, targeted user groups: 

•  
  • Historic Homes
  • Heritage Properties, Historic Sites and Antiques .

MySpace:  http://groups.myspace.com/HistoricHomes

 Targeted Websites / Publications:

HistoricProperties.com

• $50 per listing (3 photos, 3 months)
• $75 per listing (9 photos, 3 months)
• $150 per week ("Featured Property" exposure)

www.preservationonline.org, http://www.preservationnation.org, www.nationaltrust.org

• (Preservation Magazine, published by National Trust for Historic Preservation) 
• Readership:  More than 500,000 readers, average age is 55 years old; average household income is $113,000.  They upgrade historic properties for modern living (83.3%); invest in historic commercial and residential real estate (45.3%); and remodel rooms, floors, plumbing and roofing (44.9%).
• $525 for 70 words of copy and a photo.

http://www.oldhousejournal.com

• (Old House Journal Magazine - Readership:  700,000+, bi-monthly distribution. 
• $525 single ad with photo -- $800 for "spotlight" ad.
• Ad Rates include listing on Historic Properties.com (see above.)

Local Organizations:

•  
  • http://www.preservationalliance.com (Greater Philadelphia regional partner of National Historic Trust)
  • http://www.cchs-pa.org   (Chester County, PA Historical Society)
  • http://www.delcohistory.org/orgs.htm (List of Delaware County, PA Historic Organizations)
  • http://www.preservationpa.org (State-wide historic preservation)