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developer_marketingResales have seen a great comeback, and new construction is particularly hot of late. A lot of brokers are re-considering developer/new construction marketing as a way to expand their offerings and increase revenue. However, as I talk to many brokers who were very active in this space pre-recession, they are telling me it’s a different world these days.

Many developers (and brokers) were burned during the recession. They were stuck with inventory and huge marketing bills when things dried up. As a result many are infinitely more cautious and analytical about things today.

But I also see many are making the same mistakes when it comes to developer/new construction marketing:

  • Making investments in traditional print media without a plan beyond distribution. “Let’s print up a bunch of pretty brochures and give them to agents in town.”
  • Many developer and broker developer marketing services websites are substandard. And definitely not responsive (mobile-ready). A huge misstep in this day and age!
  • Few have a true strategy for attracting foreign buyers, who predominantly prefer new construction!

On the other hand, many developers — especially those building in hot markets — lean towards focusing on the consumer rather than developing relationships with agents in an attempt to save commission dollars.

But if they could manage agent relations with some sort of accountability or control, a developer might think twice about forgoing the footprint a large brokerage might have with its hundreds or thousands of agents.
In any case, as brokerages and other developer marketing agencies get back into this space, those with answers to these issues will have an advantage over those that don’t.

The days of exclusively marketing through billboards, direct mail, fancy brochures, and open houses are long gone. The developer, and anyone marketing their product, must have the ability to collaborate with agents and their consumers, understand who is engaged and how they can be supported, and absolutely must make the experience pleasing to buyers that are, in many cases, coming from other countries since they see U.S. real estate as a safe haven.

If you hope to convince developers to hire you for their developer/new construction marketing, be prepared to deal with these issues.

Jose Perez is the founder and president of PCMS Consulting.

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