Home prices plummeting. Foreclosures rising. Mortgages defaulting. Banks collapsing. New construction slowing. Loans vanishing. Credit nonexistent. Financial apocalypse imminent.
Yes, it seemed like the right time to buy that first home.
Along with the two-car garage and 2.5 children, owning a home is one of the tenets of the American dream. Lately, this dream has turned into a nightmare for countless families that have fallen victim to predatory lending practices, a problem only compounded by increasing unemployment. Despite the circumstances, the real-estate market isn’t going to vanish—people will always need places to live. Real estate will continue to be lucrative, not only for real-estate agents but also for those distributors who recognize the opportunities inherent in the market.
Of course, for many (including this writer), knowledge of the housing world is limited to MTV’s Cribs and the computer game The Sims, and as a result there’s an entire generation that believes the average three-story house should have $50,000 in stainless-steel appliances and no stairs. To guide us through the mire, Mike Cirillo, Realtor and associate broker for Coldwell Banker Hearthside, Realtor in Philadelphia, spoke with Promo Marketing about the real world of real estate, and what distributors can do to build better housing promotions.
Welcome Home
Despite the lamentations on MSNBC and Fox News, it seems the death of the real-estate market has been greatly exaggerated. “Typically, the winter months are slower compared to spring and fall, especially during the holidays,” said Cirillo. “I witnessed an increased amount of buyer activity in March and it has continued to be steady. I believe this has a lot to do with historically low mortgage rates as well as the stimulus credit.”
Another reason for the increased activity is the open house, a common fixture in the warmer months. Not only is it one of the best methods to generate interest in a property, but due to the sheer amount of materials involved in the process, it is an excellent opportunity for distributors. On a sunny Saturday afternoon, you can’t walk a block without seeing those familiar balloons strung from a mailbox.
“[Open houses] take extensive preparation to be successful,” Cirillo explained. “I advertise in the newspaper’s real-estate section and also place a sign on the property with the day and time, and provide a brochure box on the property with fliers.” In addition to these preparation, he suggests placing directional signs at multiple intersections near the property, and adorning all these signs with balloons to draw attention.
Signs, brochure boxes, balloons, informational pamphlets—it’s a lot of advertising for a single house, on a single date. With the volume of real estate being sold every day, let alone year, it can add up to significant repeat business.
What a Card
Not all of the marketing budget goes into the property itself—nothing is more ubiquitous with realtors than the smiling-headshot business card. Most people are familiar with these cards, but less known is why including the photo is so common among agents. “I am asked that question a lot,” he confessed. The reason, it turns out, is one familiar to all distributors—brand recognition. Logos may be recognized without remembering the corresponding company, but it’s much easier to see a face and attach it to a company or job. “A lot of friends tell me they are sick of seeing my face on postcards and fliers in the neighborhood,” Cirillo said. “To me, this means that my advertising is successful and that people know my name, the industry that I work in and that I have the ability to help them with their real estate needs.”
Glamour shots aside, agents rely on a healthy mix of other promotional products to get their names out to prospective customers—there’s a reason suppliers offer so many house-shaped items. “I am big on advertising,” Cirillo enthused. “I regularly mail out magnetic business cards, Philadelphia Eagles magnetic schedules right before the NFL season, Philadelphia Phillies schedules prior to the MLB season and magnetic calendars for the following year right after Thanksgiving.” All these products offer not only annual business, but season- or year-long exposure. Of course, many industry staples make an appearance as well. “I also use key chains, pens, memo pads ... all with my company and contact information,” he said, adding, “With the cost of postage constantly rising, the market slowing and with budgets tight, I think most agents are looking for an affordable way to market themselves and advertise their listings.”
Real-estate agents are in the same marketing game as distributors, and because they understand the importance of advertising, are likely to become some of the best, longest-lasting customers a distributor could find. “I am a big believer in repetition,” Cirillo said. “You want to reach the same client base or geographical area and advertise to them constantly. You will have a better chance of building name recognition.”
- People:
- Mike Cirillo
- Places:
- Philadelphia
Kyle A. Richardson is the editorial director of Promo Marketing. He joined the company in 2006 brings more than a decade of publishing, marketing and media experience to the magazine. If you see him, buy him a drink.