New construction projects can be very lucrative investments, but the act of selling a new home can sometimes be a difficult one. With the affordability crisis still affecting the US, there are less and less people in the market for new homes. On top of that, the number of buyers you can market to will already be limited since new properties tend to be valued highly and will not fit in everyone’s price range. Not all is lost though, and there are some tactics you can utilize to make the most of a real estate sale. In this piece, we cover some key tips for marketing and selling new construction properties to help you make the most of this lucrative investment strategy.
Tip 1: Understand Your Target Audience
Being able to efficiently market starts with identifying the right audience to target with your efforts. This means understanding the needs and preferences of potential buyers. Buyers looking at new homes will have preferences for things like property size, design, technology features, the neighborhood it’s in, and even nearby amenities. Once you understand their preferences, you can create an ideal buyer persona and tailor your marketing efforts to them so they’re more effective. It will be even more beneficial to take care of this step during the construction stage so you can incorporate features that appeal to this audience.
Tip 2: The Importance of a Stellar Listing
In truth, the best way to get your property sold is to create an excellent listing that highlights all the best features of the home. You want your property to stand out from the crowd so you can generate demand for it, which might even lead to a higher final sale price. Start by hiring a professional photographer to take great photos of the property to use in the listing. You should also look to stage the home for the photos in order to showcase its possibilities to potential buyers. With modern technology, it’s even possible to virtually stage photos at a fraction of the cost of buying furniture. Be sure not to neglect the exterior of the home as well since it’s often the first thing buyers see and will leave a lasting impression on them.
As for the listing description, you’ll want to discuss the unique selling points the property has in an engaging and persuasive manner. You should focus on the advantages of a new home such as its modern amenities, energy-efficient features that reduce costs, and room designs or layouts not typically found in older homes. Besides this, you should also include as much vital information about the home as possible so you can appeal to the most buyers. Some standard items include the number of bedrooms, number of bathrooms, square footage, lot size, location, and any other upgrades worth mentioning. Finally you should include a strong call-to-action, such as an invitation for those interested to reach out for more information.
Tip 3: Leverage Digital Marketing Channels
After you have created a great listing that helps your property stand out, you can further increase demand for the property by promoting it through digital channels. One of the best ways to go about this is by posting in local real estate groups on social media. Facebook in particular is filled with real estate groups composed of motivated buyers, investors, and other like-minded people trying to promote their property listings. Taking advantage of these channels will get your property in front of more eyes and can be the one thing that leads to a successful sale.
Tip 4: Local Marketing Efforts
Once you think you have generated enough online attention for the property, you can make use of local marketing efforts to capitalize on the demand. You should already be working with a qualified real estate agent to facilitate the sale, but now is when you will want to take efforts into your own hands by spreading the word through you own personal networks. This is also when you will want to host an open house session for interested buyers, allowing them to see the property in person and ask you any final questions before potentially moving forward with the sale.
Tip 5: Implement a Strategic Pricing Strategy
If you have already made use of the strategies mentioned above and your property still just isn’t selling, it may be time to implement a smarter pricing strategy. First, if you haven’t already, be sure to take a look at existing sales of comparable homes in the same market to get a better idea of what buyers are willing to pay. You should be priced competitively enough to draw buyers’ attention while still leaving enough of a margin for profit. Finally, know that you are going to be paying more in holding costs the longer the property takes to sell. If you want to offload the property sooner, you should look to periodically lower the sale price by small increments until you’re able to find an interested buyer.
The easiest way to save on a new construction investment is to work with a trusted lender that can get you the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors & developers across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. If you are an investor looking to acquire financing for a construction project, RCN Capital has competitive loan options available. Connect with us today to discuss your next real estate investment.