House Positioning Is Everything!
Marketing your house for sale the RIGHT WAY is all about proper positioning. Many people do not fully understand what proper positioning is. Positioning is the term I use to refer to how we make your house appear to the general public. It is how your home is portrayed in image, tone, and even pricing.
It’s the basis of how we market your house for sale.
Who are we trying to reach?
Who is the most ideal buyer for this property?
To properly advertise your house for sale you need to find out the who, what, where, when, and why someone would want to buy your property. Once we can answer all of those questions then we can begin to create the story board for your home to get it ready to take to market. Proper positioning is what ties everything together.
Think like the big brands do
Big brands position and cater to their intended audience. You want to market your house the same way a big brand would market their products to the general public. You will see a HUGE difference in showings, market time, and offers by proper positioning. There are 3 ways to position a house for sale. Let’s start with pricing.
Pricing is the most important part of positioning. A good marketing plan for a house should have a 2-3 step pre-planned pricing strategy should a seller not get enough traction with their initial price offering.
You want to know what your next move will be ahead of time should your initial list price not create enough traffic to generate an offer. Having this planned will allow you to reposition your pricing quickly so you do not accumulate too much market time, which always invites low ball offers.
The number one criteria consumers ultimately search off of is price. Go look on any of the major search engines and you will realize that search prices tend to be in $25,000-$50,000 increments. People search up to $100,000, $125,000, 150,000, and so on(if this is their price point). You want to take this into consideration when determining your initial list price.
Every time a price change occurs and your list price changes in a $25,000 increment you will target a new pool of potential buyers who previously were not seeing your property.
Case Study- Pricing Positioning
I took over a listing from an agent who had the property listed for over 250 days and there was never one price change. The market time accumulated on the property alone tainted the listing. Nobody wants to buy the house that sat on the market FOREVER.
When we took the property over we decided to list it at $214,900. This was only a $5,000 price change from when it was previously listed at $219,900. I knew we were on the higher end, but I wanted to test it out. The seller was taking a big loss on the property so every dollar counted! We sat on the market for roughly 3-4 weeks.
We were getting showings and even received a second showing, but no offers. I had to take into consideration the market time of the property as I did not want to accumulate too much of it in the seller’s best interest.
I had to have a heart to heart with the seller and tell him that we needed to go below the $200,000 mark. We would then be targeting the “up to $200,000” buyer pool. Many people were not seeing our listing because they were capping their search at $200,000.
Within 4 days of changing the price, we received an offer for within $1,000 of list price. The buyer decided to offer near list price because they didn’t want to lose it to another buyer. That is pricing positioning!
The remarks used when describing a home for sale are essential. It’s important to tell a story of the home as the description rather than trying to hard sell it. Potential buyers are looking for an investment, but also a home to live in.
Based on the type of property you are trying to sell, you need to position your property to speak to that ideal buyer. If you are selling an investment property the remarks should be focused on numbers, cash on cash return, net operating income, gross operating income, and CAP rates.
If I am selling a single family home, the remarks will be talking about school districts, local restaurants, and parks. They are more focused on lifestyle.
When listing your home for sale it’s very important to tell your agent the things you love most about the property. Make sure you tell them how you take walks to the lake or how you love the short walk to the train. Your agent needs to write a story board for your house so that they can speak to potential buyers to strike an emotional cord with them.
Description Positioning Case Study
The property in the example above was on the north side of Chicago near Loyola University. It is also just a short walk to Lake Michigan and the train. I told the seller upfront that their buyer was going to come from one of these 3 categories. These are the listing remarks on this exact listing that were used.
“PRICED TO SELL!Recent gut rehab w/all the upgrades galore steps from Lakefront,Loyola,& Redline stop around the corner.Ultra convenient location.Super bright unit feels brand new w/ exposed brick,featuring hardwood flrs throughout,cherry cabs,Stainless Steel appliances, granite c-tops,3 large bedrooms and both bths completely upgraded.Nice size deck off living room for grilling & outdoor space,pkg leased,storage room”
I knew we had to focus on the location to really talk to that buyer. The couple who purchased this condo loved to take walks on the lake. They are lake people and the remarks about vicinity of lake are what stood out to them. This is Description Positioning!
When you are marketing your home for sale, your agent should be targeting where your buyer is more than likely to come from. An aggressive agent will chase your buyer vs. just placing a sign in the yard and list it on the MLS. You want to proactively market the home in places you believe the buyer will come from.
Marketing positioning is targeting your marketing efforts on the ideal geographic location and/or demographics of your potential buyer.
Once you have created your ideal buyer avatar for your home, it’s time to find out where they hang out! This is the fun part!
With the use of social media you can really zero in and market towards your ideal buyer avatar. I can only give you one example so that my competition does not rip off my secrets! In Facebook ads, you can target people based on location, zip code, or even what Facebook pages they like. You can target a specific audience that matches your ideal demographics that is “likely to move”. It’s really amazing what you can do nowadays!
I took a listing in Woodridge, Illinois. I knew immediately that the buyer for this home was going to come from one of the nearby cities. I wanted to advertise locally so that people would know that this house was for sale. I filmed a YouTube video of the property and targeted Woodridge and nearby cities on Facebook. Within a week I had over 500 views on my YouTube page alone that saw this property video. You can check the video out here to see proof of the amount of views I had.
All of this was because I targeted my video ad to reach people in nearby cities. My clients were very excited about this, especially after we sold the house fast!!! The sale set a new record for the neighborhood on top of it! That is Marketing Positioning!
I hope this information helped you understand all the the different ways you can position your home for sale. As you can see it’s a full time job!
Have Any Questions?
When I meet with a potential seller client I make I walk them through the entire house selling process up front. This will help you decide if selling your home is right for you at this time. If you would like to to set up a time to see how if selling your property is right for you, just fill out the form below or contact me and I will be glad to assess your situation. Don’t worry I don’t bite and there is no charge to have a conversation :).
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