Real Estate Marketing Strategies in Hard Times
One of the industries that is often hardest hit during a recession is the real estate industry. When consumers are short of funds or threatened with losing their jobs, they are significantly less likely to commit to the purchase of big-ticket items, particularly those expensive enough to require taking out a loan to purchase. However, some enterprising real estate companies can use these hard times to their advantage by making them the basis of their marketing strategy.
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Focus on Depressed Prices
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Often during a recession, when people are least likely to want to buy a home, home prices are at their lowest because of the depressed demand. Many real estate companies attract new clients by focusing their marketing on the incredible deals that people can pick up while prices are lowest. A typical advertisement might show a large house and state what it was worth during boom times and then what a lucky buyer can purchase it for now.
Market to People Who Have Been Foreclosed On
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During a recession, many people have their homes foreclosed upon. These foreclosures create a large new market of potential home buyers. While some of these people are not in a position to purchase a new home, many -- particularly those who have a steady income, but who became stuck in a lousy mortgage -- may be ready to re-enter the market. Post advertisements for low-cost homes near foreclosure support groups or other events that might attract the newly house-less.
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Point Out Low Interest Rates
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Often with hard times comes a drop in interest rates. While during periods of economic growth interest rates will often rise as businesses seek to take out loans to expand, during periods of economic contraction interest rates will fall. Often, a country's central bank will also help push down interest rates to spur lending. Consider pointing out to prospective property owners that now is an excellent time to get a low-interest mortgage.
Use Humor
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Periods of recession are marked by an atmosphere of doom and gloom. According to Forbes magazine, some of most effective advertising during this period makes use of humor as a way of lightening the mood. Not only will a good joke cause people to pay closer attention to your ad, but it may create a feeling of good will toward your company. Consider trying to find the humorous side of economic hard times.
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