Who’s Buying in Southwest Florida?

To be published in the news-press.com March 13, 2010 http://www.news-press.net/landingpages/burke/index.htm

In business classes, students are taught that the key to successful sales is marketing to the correct audience. In order to do this, you have to identify who your audience is, and what they want or what is important to them. Then, you have to focus your marketing push on how your product or service meets their needs.

My point is, the same principles apply in real estate. You have to know who is buying right now, and in order to sell your home, you have to know how to market it to them. You have to know who your audience is. Did you know, 90% percent of buyers start their search on the internet (NAR Fact).

The real estate market has undergone some changes in recent years, and homebuyers are not the same kinds of people as they used to be. Historically, Southwest Florida has been like a retiree magnet – location and the lack of an income tax encouraged a lot of people to buy property here and relocate after they retired. People looking for a second home or a vacation home also made up a large part of the buyers.

Not so anymore. Retirees and people looking for vacation homes tend to be pretty traditional groups of people, and when the going gets rough, the traditional folks are the ones most likely to sit it out and observe from the sidelines. But houses are obviously selling, and the market is making a comeback, which begs the question – who is buying now, if not the retirees and the vacationers?

The answer to that question is that there are two distinct groups of people buying. One group, the one that seems to be foremost on everybody’s radar, is the (for lack of a better term) deal hunters. These are the folks who are eager to take advantage of the great housing prices and low interest rates available right now. Rather than sharing the traditional groups’ more pessimistic views about the housing market and the overall economy, the deal hunters are optimistic about the market and know that their good deal now will turn out to be a great investment later on.

Since these people make up a large proportion of the folks who are buying right now, your asking price needs to be set with them in mind. If they are looking for a deal, that’s what you need to offer. In addition, your listing needs to demonstrate why the price is a deal – a well written listing demonstrates all the great features your home has.

One other thing that is different about this group, when compared to traditional buyers: A lot of buyers right now, besides being interested in getting a good deal, are won over by homes that are unique in some way. These are the buyers who are looking for something tangible and home-like – a house they can picture living in. And right now, since a good deal isn’t hard to find – more than half of home sales are for $250,000 or less – homebuyers in this group will be looking for something that sets your home apart from the others. Your listing needs to paint a picture for them: not just what life in your home will be like, but also how it will differ from life anywhere else.

Another type of buyer that we’re seeing a lot of in today’s market is the international buyer. For some time now, I have been seeing a lot of buyers from the United Kingdom, other European countries such as Germany, and Canada. Several factors have led to people buying vacation homes or investing in real estate property overseas. In addition to the fact that real estate prices fell substantially several years back, there is also the fact that the current exchange rate – the American dollar not being worth as much as it used to be – makes American investments more appealing than ever. An international buyer can purchase a home in Florida, either as a vacation home or simply as an investment, and know that as the market and the American dollar recover, they will be able to resell the house for a substantial gain.

Knowing who is likely to be interested in your home, and why, is important because it affects how you and your real estate agent go about selling your home. Be sure that when you are looking for a real estate agent, you are careful to choose one who understands how the market has changed in recent years – and who has been willing to adapt to the new buyer demographics. Remember, your choice of a real estate agent has a major impact on how well your home sells! Any agent can list a home, but it takes a true real estate professional to market a home. Three major elements come in to play when marketing a property. One needs engaging photos, preferably from a professional photographer that specializes in property photos. Two, we need accurate and compelling descriptions of the property. Finally and the most important is PRICE. Price is controlled by the seller. Do you want to be “IN” the market or just “ON” the market; there is a very big difference.

As a real estate agent who specializes in the Southwest Florida market, I am well equipped to offer a current read on the real estate market. In addition to being plugged in to current trends in the neighborhoods where I do most of my business, I also have a dynamic marketing approach that includes an interactive website, a widely read newsletter, and a strong team of people who help to make it happen! To discuss who’s buying now and how to effectively market to them, feel free to call or email me any time.

D. Michael Burke, P.A. Keller Williams Elite Realty
Michael@CoconutPointRealEstate.com / www.CoconutPointRealEstate.com