Housing Giants - March 15, 2009 - (Page 5) kahn By By Michael P. Kahn, Michael P. Kahn & Associates 3. 6 steps to More sales If your sales have stalled, too, it’s time to shake up your sales and marketing approaches. For those regular readers of my column who have already experienced other previous down-cycles, as well as for those of you who joined our industry from the mid-1990s through 2006, this is without a doubt a great time to think “outside the box” in how you sell and market your houses. This is the worst cycle I have experienced in my 49 years involved in home building. Whatever worked for you during the great years either stopped working or at best isn’t working as well as it did. I really cannot take personal credit for these great ideas; they come from our clients, and they work. Consider these taCtiCs and strategies: reMeMber that net sales after CanCellations are what really Count! In these times, it’s most important to keep sales after you’ve made them. It’s easy for buyer’s remorse to set in. One of our clients has solved that problem in the novel way the company finances its sales. After seeing 20-plus of their 30 pre-sold houses cancel after construction started and winding up with 20-plus speculative houses to sell, they realized they had to stop cancellations. They talked with the banks providing their construction financing as well as other banks they had no previous relationship with and convinced them to make the construction loans directly with the home buyer rather than the company (subject to buyer’s credit being acceptable and so long as the buyer had a commitment for a permanent takeout loan). The result: no cancellations. expand your Current referral prograM or start a new one! Whereas newspaper and other media ads are costly and won’t necessarily produce enough sales to warrant the investment, fees to your existing homeowners for referrals that are paid at closing directly relate to actual sales and are easy to track. The builder we refer to is offering $2,500 to existing homeowners for each referral they turn in that results in a sale, payable at closing. Check your local state laws in each market to make sure you aren’t breaking the law. We also suggested the builder hold a bi-monthly reception for all homeowners in the subdivision to introduce new buyers to the other families in the community. The firm also offers $25 for each referral, just for the lead. help your buyers sell their existing hoMes! Dust off your previous guaranteed resale programs or start a new one. Help your buyers sell their existing home if that’s what it takes to make the sale. Make sure your broker 4. 1. have your sales offiCes shopped! I recently shopped sales teams. I was shocked at how few, if any, salespeople tried to sell me a home. They were still operating as if buyers were going to take houses away from them rather than selling their offerings. You need to have your salespeople sharp and selling. Make sure your sales offiCes and Models are in tip-top shape! Models need to be clean and fresh; offices well-organized; burned out light bulbs replaced; and trash picked up daily. Landscaping and signs need to be in tip-top condition; they’re what home buyers see first. 2. 5. 05 03.15.09 HOUSING GIANTS www.HousingGiants.com http://www.mpka.com/Home.aspx http://www.HousingGiants.com
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