Have you noticed that housing market news is solely focused on rising home prices? Sure, there is the occasional tidbit about the lack of inventory, but consumers are mostly hearing that it’s almost impossible to buy a home right now.
This puts homeowners who may be thinking of selling in a quandary. They’ll get good money when they close, but will it be enough to buy the next home?
The one critical thing that we rarely read in the media is how much equity the average American homeowner is sitting on.
“On average, homes with a mortgage gained $26,300 in equity in the last three months of 2020 versus a year earlier,” according to the Associated Press, citing stats from Core Logic.
Sadly, this impressive news is hard to find unless you step in and change that.
Reach out to Homeowners
Not just any homeowners, though. Your best bet right now are the owners of starter homes. They’re the ones most likely to be considering selling in a quest to move up. Entry-level homes are also the most in-demand right now, as we’re sure you know.
Farming via direct mail is probably the best way to reach out to these homeowners. There are several reasons, aside from the obvious (direct mail is how we make a living), for choosing this marketing method right now:
- We are subjected to between 6,000 and 10,000 digital ads per day. That a whole lot of noise for consumers to sift through.
- “Bidding costs on digital marketing platforms have risen and continue to rise as a result of high demand and increased competition.” (International Business Times)
- Online attention spans are dwindling. The average is eight seconds; for mobile users, it’s three seconds.
- 62% of Americans said that they felt more connected when they received a card in the mail (USPS Market Research & Insights).
- 55% said they felt less isolated when they received snail mail.
- Direct mail response rates are from 10 to 30 times that of email, and direct mail is more effective than email at creating and retaining brand awareness. (Data and Marketing Association).
Keep it Simple
Target homeowners with a tenure of at least eight years in their starter homes.
Your first campaign might be a simple postcard pointing out how much equity homeowners have gained. The CTA? Contact you to find out how much they’ve gained.
Again, keep it simple. You want each mailing to address one subject and contain a clear CTA.
“No one should experience a touchpoint and then wonder what the point was or who it was from.” Nick Runyon at marketingprofs.com.
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