You’ve probably heard many stories about selling/renting properties. Everyone has a different take on how it’s done and what they consider the best strategy. The truth is that no one realtor or affiliate is the same. From lead generation to closing the deal, every person brings something different to the table. One’s social skills could be what makes or breaks a deal, but that’s a risk that comes hand in hand with this career. However, one thing remains the same across the board; identifying your target markets. Mixing and matching the listed properties to your clients could be quite fun. It is perhaps one of the biggest perks of the job; however, it does require some understanding of the target markets. Below are the most common real estate target markets.
When it comes to investors, your best bet is to lead with the ‘head over heart’ approach. Investors are typically looking to buy real estate for the sake of diversifying their investment portfolio. In other words, they’re not interested in the same things as a newlywed couple.
Investors want to know that the property is an asset that can grow in value over time, be that through rents or downright purchases. They care about the facts, and more than anything else, numbers. Tell them (or show them) how purchasing a specific property will be beneficial and increase their cash flow. Capital growth of the area, expected rental return, taxes, and depreciation deductions are all very important bits of information for investors.
Finally, investors are looking to increase their wealth, not their headache. It’s important to explain why real estate is a smart and easy investment and convince them that the property is low maintenance.
An upsizer is someone whose family recently grew in size, and their current home is no longer able to accommodate all the members. This kind of buyer will be looking for a spacious property with many bedrooms designed for a large family.
Unlike the investor, this kind of buyer needs to be able to visualize his family living in that property. In other words, it’s a ‘heart over head’ approach. That’s not to say that numbers aren’t important, just that upsizers need to be emotionally sold on the real estate. They have to be able to see their kids playing in that yard on sunny days and BBQ Sundays on that porch.
One of the most important things for an upsizer is space, so you’d do well to focus on the space that the property offers. Some of the most desirable spaces include a significant number of bedrooms and bathrooms, a big yard, a large family room, a decent garage and so on.
Naturally, the upsizer will also be interested in the neighbourhood, whether or not the real estate is in a good school district, but don’t forget to show them how the property will also be a good retreat for them.
Contrary to the upsizer, the downsizer is looking for a new smaller place to call home. Downsizers are usually parents of kids who have ‘flown the nest’, and now their house is too big for just the two of them.
It’s important to remember that the downsizer isn’t the same as a single professional climbing the corporate ladder. Normally, they don’t want pigeonhole apartments in the centre of the city. Usually, they are looking for a home that is just smaller; they still want it to be cosy, relatively remote, and close to local amenities.
When selling to downsizers, the focus should be on ticking their boxes. It’s safe to assume the downsizers will not be keen on renovating, so focusing on fittings and quality finishes is the way to go. The downsizer is perhaps one of the easiest target markets to work with. They’ve done this before, they’re not overly ambitious, and they want to get it done as soon as possible.
The Single Professional
While downsizers don’t want to be in a pigeonhole, young single professionals living in the city and trying to make a name for themselves are more than willing to. The single professional would be primarily interested in real estate that is as close to their job as possible. They aren’t looking for a big property, and they aren’t preoccupied with school districts and such. Instead, they care about privacy, convenience, access to subways or amenities, and other such things.
When selling to a young single professional, you have to demonstrate to them that owning real estate makes sense financially and makes their life easier. Young single professionals don’t have a lot of free time; therefore, anything that can save them some precious time is well-received.
At the same time, young professionals tend to have an idea of what they want their apartment to look like, so they will be interested in doing some decorating. It might be more beneficial to show them homes without the finishing touches.
The Professional Couple
The young professional couple is interested in settling down – just not in the suburbs. At least, not quite yet because they are just beginning their careers. These people typically work in the city and are looking to buy real estate both as a home and an investment. In other words, they want to take that step together, but they predict that they will want to live in the suburbs eventually, so any property they buy now will eventually get sold or rented.
Nonetheless, selling a home to a professional couple is no easy feat. They are smart, driven, and perfectly aware that the real estate they buy now will be their home for the foreseeable future. They will want it to come with convenience, security, and relative privacy.
It would be best if you convinced the professional couple that the property would complement their work-life.
The First-time Buyer
First-time buyers can be the easiest and the most challenging clients to work with. They are often overly excited and super eager to begin this new journey in their life. At the same time, they are very hesitant and nervous because they’ve never done anything like it before.
A holistic approach is most suitable for first-time buyers, as they are focused on value for money and realizing their dream. These buyers want to purchase a home that is affordable, mostly because they’re scared to take on a bigger risk. However, they don’t want to fall way below the dream trajectory; they still want their home to be the ‘the one’.
First-time buyers are often very creative, tech-savvy, and innovative, so don’t be surprised if they want to change and renovate things.