Introduction
Real estate industry is highly dynamic and requires constant monitoring. Its sensitive nature requires business players to be at par with the current technological, economical, social, legal and regulatory trends in the market. Majority of home buyers engages with these trends, in addition to their financial capabilities. Home buyers are keen to buy homes that suit their requirement while putting into consideration the amount of money they have, or their chances of obtaining mortgages. This presents a delicate scenario where buyers or marketers have to find homes suited with their specifications.
Economic and Financial Conditions
Economic reasons profoundly influence participation in the real estate business. Investing in commercial real estate requires a substantial amount of finances, thus engaging in loan consultations with financiers is of utmost importance. The uniqueness of the borrower coupled with rules and principles of the financier presents the need for deliberation in brokering the best deal possible. The marketer also faces a responsibility of negotiating for favourable financial assistance advancement to his client on request. Success of buying and selling of homes depend on the securing of the best and competitive lending rates that suit the concerned parties. Banks in which the home buyers entrust the financing responsibilities should be flexible enough to meet any presented financing need. Loan programs should have an adequate range to cover the needs. A real estate financier in the USA has loan programs extending from $500,000 to over $100,000,000 and has reported an increase in clients pleased with its wide bracket of loan services (Capstone, 2010). Home buyers accessing loan and real estate advisory services arranged by the financiers and marketers prove decisive in the real estate industry linked with information about the market (Majumdar, 34).
For many home buyers, their hard earned savings play a vital role in acquisition of mortgages. In the United Kingdom, a cooperative venture known as Building Society deals with acquisition of mortgages. It is extremely important that potential home buyers possess savings to aid them in obtaining financial services. Mortgage arrangement can be made in accordance to savings or any other asset subject to financier’s approval. Savings and assets contribute substantially in the endorsement of a mortgage plan by banks or any other real estate financier.
Technology, Social and Legal Trends
Building technology affects home buyers decisions since consumers’ social trends, and satisfaction are principle considerations in the buying process. Current and trendy construction technology assures the potential buyers of security and guarantees value for money upon purchase. Marketers toil to locate and present updated homes in which modern building technology has taken shape. It is the responsibility of the home buyer to inspect the presented real estate asset before making any financial commitments. House details such as the number of rooms, air conditioners, security details and power should be checked. If the required repairs on the house are not covered by real estate merchandising agents, then the costs calculations are inevitable to aid the buyer on the worthiness of engaging in the deal. Prior inspection by the potential home buyers has influenced 66% on the final decision according to a report on the Washington Post. It has also been on the advisory notes of real estate purchasing institutions that, marketers and buyers assess the legality of the merchandise at hand. This aims at ensuring that the houses conform to legal requirements of the regulatory bodies concerned. Consequently, this ensures validity of houses and the buyer assumes liability after being adequately informed (Van 57).
Guerrilla Marketing Strategy in Buying a Home
Real estate is a booming business, which is growing at a sky rocketing rate. Most real estate designers build homes in a strategic location and various specifications to suit customers’ requirements. Competition in the industry has tremendously increased. A number of issues have emerged. Real estate has widely transformed from building simple homes to building unique homes to suit customers’ specification. Customers have a wide option of selection from many homes and a large pool of sellers. Banking institutions have also played a significant role by providing mortgages at a low rate.
In order for real estate companies to selling homes, they must offer quality services. Such services such as flexible means of payment and sometimes discount might boost their sale. This does not always play a crucial role in selling homes. Customers have their own preferences in terms of location and house specifications. This implies that a customer intending to buy a home in a certain city cannot change his or her mind to buy home in other cities, as a result of some services offered by the real estate company. In buying homes, customers consider many things before making their decisions; most of their preferences come from internal. For example, their tastes will push them to consider buying homes in certain locations. However, external factors always play a part. Sometimes to make the final decision it depends on the extra information or appeal that will present. Advertisement plays an integral role in sparking customer to make their decision. However, many people have generated a negative perception towards advertisement. Some of the most fancied advert barely contributes anything in increasing sale (Jeannet et al 14).
Real estate spends millions of shillings in Setting up of billboard, T.V and radio advertisements. This has become a common trend to almost all real estate companies. In hard economic times real estate becomes one of the adversely affected businesses, this demands a change in advertisement strategies in order to remain competitive in the market. This calls them to cut their advertisement cost and initiates new strategies in marketing. One of the real estate companies in California used a grotesque picture of a stained outline of a dead body in the living room. This picture although shocking attracted attention of many people, and a result it made the company known and surprisingly resulted to increase sales of its homes.
In times of recession, most of the conventional means of advertisements does not contribute in selling homes. In essence, this means increase the spending of real estate companies, consequently deeming them further to loss. This phenomenon has made experts in real estate business devise strategies in advertisements that could make them sail through recession. Guerrilla strategy has emerged as the best option in advertisement on occasions of recession. It is cheap, direct appealing to customers and flexible depending on creativity applied. Many real estate companies are coming up with this unique strategy to restrain competition in the industry. It requires developing a creative and an attractive advert and putting it in the buyers’ contexts where the company intends to sell homes. This will ensures that the advert directly apply to the relevant customers, hence increasing chances of sales.
References
Jeannet, Jean-Pierre, and Hubert D. Hennessey. Global Marketing Strategies. Boston: Houghton Mifflin, 1995. Print.
Majumdar, Ramanuj. Marketing Strategies. New Delhi: Allied Publishers, 1996. Print.
Van, der W. B, and Lynne Horan. Marketing Strategies. Observatory: Future Managers, 1998. Print