Question

Topic: Strategy

Ways To Market A Series Of 55+ Homes

Posted by Anonymous on 8/1/2011 at 2:22 PM ET 500 Points
My problem is coming up with creative ways to advertise a series of homes being built to a market who does not understand and embrace the concept of 55 & Better living.

My issues are:
There are no specific floor plans, no elevations, no renderings, no specific sizes or features.
There will be 8 - 10 homes built next to one another
We have a very limited database of potential customers already
I have been given no specific budget to work with but I know that they are expecting "guerrilla type" marketing techniques.

What we do know about the homes are:
They are designed for 55 & Better customers
All single level living, maintenance free
This is a "green community" with a certified green builder
They will be energy efficient but we will have to wait to get the energy star certification
The homes will be named after flowers, flowering bushes
Home prices start in the low 200's for house and home package. This will be for a 1200 sq ft house.

Any ideas on what to name this "series of mystery houses" and unique selling strategies?
Any help is greatly appreciated!
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RESPONSES

  • Posted by mgoodman on 8/1/2011 at 2:42 PM Accepted
    So let's go back to Real Estate 101: What's important is the location. What makes the location ideal? Why might someone in your target audience want to live in that location?

    What you've listed as "what we do know" items are all features. When you're actually face-to-face with a prospect, you want to mention those for sure. But to get them interested enough to inquire/listen to the pitch, you need to promise them a BENEFIT. And the three important benefits are LOCATION, LOCATION and LOCATION.
  • Posted on 8/1/2011 at 2:44 PM Author
    The location is a nice feature (near a grocery store, hospitals, etc.) but is also bordered by an assisted living facility, offices and a rehabilitation center.
  • Posted by mgoodman on 8/1/2011 at 2:51 PM Moderator
    Your description of the location is a little limited.

    First, of the 5 things you listed as being nearby, 3 of them sound like they are for 75+, not 55+. If this is really a retirement community, then 55+ isn't a very good description.

    Second, you haven't made any mention of why someone might want to live in the state or region where these houses are being built. Are there golf, sailing, tennis, beaches, thriving businesses, excitement, young people (of all ages), etc. nearby?

    The way you've described this, I can't understand why anyone under the age of 75 would even consider it.
  • Posted on 8/1/2011 at 2:54 PM Author
    I completely understand and can''t help but to agree. (which is why this task is so difficult for me.)

    The city is a military town. No beaches, good golfing is about 1 - 1.5 hours away, not a big city. I wish I could tell you something impressive. The market would be the local population because in my experience people to not move to the area to retire. If they do move, they come to be with their children who are stationed in the area and are looking to lease rather than to purchase.
  • Posted by mgoodman on 8/1/2011 at 4:30 PM Moderator
    Let some other poor soul tackle this assignment (and fail miserably). Just tell the developers you don't think you're the right person for the assignment.
  • Posted by Jay Hamilton-Roth on 8/2/2011 at 8:54 AM Accepted
    Given the information you've shared, make it easy for people in the area to "trade up" to your homes. For example, can you offer to buy their existing homes from them at a guaranteed price to make your offer the "easy choice"? Is their an active retirement community already in the area? If so, how can you align your homes with them? If there isn't, can you create more than simply a group of homes - can you create a community (have a shared community center as part of the series of home)?
  • Posted by peg on 8/5/2011 at 8:17 PM Accepted
    Lindsey,

    From experience I can tell you that a builder who has unrealistic expectations of the market also has unrealistic expectations of the marketer. The situation you describe is designed to fail. I can virtually guarantee it.

    So, you have three choices: Fail with it; walk away from it; or change the situation. Hopefully, you'll chose the second or third.

    How do you change the situation? By helping the developer reassess the situation using this train of thought:

    1. Retirement developments are available everywhere, an increasing number of them in this price range. If there is no intrinsic reason to come to this location, then by default this development is at a competitive disadvantage with almost all other retirement communities -- most of which have a lake and/or golf course, planned transportation options, a concierge or some kind of community staff on which to rely, a vibrant surrounding community, gorgeous natural or landscaped settings, and a nearby city that offers entertainment, fine dining, museums, quality shopping as well as discount retailers, and a major airport fairly close by. You need to have a line-up of advantages like this to attract 55+ residents to their last-ever home.

    The developer may have bought the land because of a great price and just assumed advertising would solve his problems. If so, you may need to sit him down and explain that marketing is necessary, useful and productive; but it is not a superpower.

    2. However, your location does have one attraction that no other location can possibly match: the kids. Parents of those in the service often want to be nearby. If you could convince your developer to offer leased residences rather than purchased, the project would have a great deal more potential. However, this may violate the terms of his loan, so watch out for that.

    3. A better strategy would be to eliminate the 55+ requirement for residence ... because the other group of people who want to live (leasing or owning) near a military base, are military families themselves (who are not over 55). If the developer hems and haws about this, it may be that his bank loan includes a 55+ community as a requirement. If so, this is one term that sometimes can be renegotiated. (Banks usually have to make a certain percentage of loans in different housing categories and if they have sufficient other loans in this category, then they may well be interested in renegotiating.)

    The basic point here is, if you (or your marketing agency) is going to stay with this project, it would have to be on the condition that the project circumstances significantly change ... to something based in reality.

    If that's not possible, get out of there. A project that starts off this ominously doesn't get better, and it can harm everyone in its path. Get off the bus while you can.

    P.S. "No budget yet" is developer code for "no budget." "Guerrilla tactics" is also code for "no budget." See earlier comments about unrealistic expectations.

  • Posted on 8/15/2011 at 9:02 AM Author
    Thank you everyone for your input.
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