Lessons Learned in the Real Estate Development Process

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Lessons Learned in the Real Estate Development
Process

• Jennifer Nevitt Casey
• Bravo Strategic Marketing, Inc.
• www.BravoStrategicMarketing.com

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Economics

• Supply
• The most innovative product design will be
  absorbed the most quickly in the market- place
• Product design should focus on customers
  Quality of Life solutions like sufficient
  parking and hot water, security, abundant natural
  light and storage, water pressure, noise
  abatement and energy cost reduction

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Economics

• Demand
• Location, Location, Location
• Employment Drives the Success of Housing
• Fluctuation in Interest Rates Creates
  Fluctuations in the Depth of the Market
• The real estate developers with the most talented
  teams will sell the most inventory with the
  fewest discounts, talented teams are paid well
  with tremendous compensation packages

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Economics

• Demand
• Commissioning a third party market research
  study/ due diligence is the most important step a
  real estate developer takes after the land is
  under letter of agreement
• A consumers ease in finding, viewing and
  visiting your product is essential for you to
  capture the available demand in the market
• Internet 24/7 Global Market Place

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Product

• Product Offering
• Until your product offering is locked down, dont
  open a sales center or advertise your product
  losing credibility in the market will slow
  velocity exponentially
• Focus your energies on opening the sales center
  and model with a locked down product offering
  the market is more sophisticated now and wont
  buy what it cannot see

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Best Practices

• Sales Marketing
• Product design should focus on customers Quality
  of Life solutions like sufficient parking and hot
  water, security, abundant natural light and
  storage, water pressure, noise abatement and
  energy cost reduction
• Measure the results we cannot manage what we
  cannot measure

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Checklist

• Product Presentation
• Build the infrastructure roads and parking to
  the sales center and model park ease in parking
  is critical to the success of sales
• Invest in fabulous state-of-the art signage and
  landscaping your curb appeal defines your
  success in sales
• Open the Sales Center
• Open the Model Homes

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Hurry, Hurry.. WAIT!

• Market Introduction
• Burning off the bliss- many developers
  emotionally attached to their deals are anxious
  and push to start advertising and marketing in a
  state of fear well before the sales center and
  product is ready to sell. Dont waste your time,
  money and precious energy on announcing to the
  market too early. A patient, well orchestrated
  plan that goes to market after the product
  specifications are locked down will have the
  markets respect.

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Best Practices

• Sales Marketing
• Sales Marketing budgets today are approximately
  10 of Gross Sales Potential no longer is 5 of
  sufficient
• Talent is a great tool used by Ritz Carlton to
  profile potential sales team members
  www.TalentPlus.com
• Be careful using ad agencies that insist on their
  logos being predominant on all collateral and
  marketing materials

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