My absolute favorite professor, Dr. Bob Kimball of University of West Florida, had a great saying,
“You don’t get paid for working hard, you get paid for results.”
This statement can not be any more true, especially in Real Estate. There are many agents that spin their wheels for 20 hours out of everyday, and have the fancy spreadsheet report to prove how hard they have been working sell a property. But, the fact of the matter is that is still has not sold. When properties don’t sell, Real Estate Agents don’t get paid. However, when a Real Estate agent gets the result of selling a property they DO get paid. All of this shouldn’t be any big news; basically common knowledge about Real Estate.
In Marketing Fundamentals Dr. Bob Kimball teaches the 4 P’s of Marketing.
It is these 4 P’s of Marketing that make up the 4 P’s of Real Estate Marketing. These 4 P’s are what is going to get the results to get paid.
1. Product – Look a the product long and hard. The product is the land and sticks and bricks that make up the property. Know everything there is to know about the product, inside and out. Additionally, know the competitor’s product; just as well or better. Knowing where the property ranks among it’s competitors (or in Real Estate terms, comparables) will help set an accurate price.
2. Price – The price is where many Real Estate Agents and their clients disagree. In the end, a property is only worth what someone is willing to pay for the property. The price needs to be based off of what other, similar properties have sold for in the most recent future. Additionally, the price should be weighted based upon comparable products. A fair price should not be set below market, but should be just high enough to negotiate down.
3. Promotion – This is where many agents use the 3 P’s of Real Estate: Put up a sign, Put it online, and Pray. For some properties that is all it takes. However, that is rarely the case. Promotion takes an analytic type of perspective. Not only do Real Estate Agents need to promote a property, but they also need to accurately track how the promotion of the property is effectively bringing potential clients to purchase the property. In the end, if it doesn’t make dollars it doesn’t make cents.
4. Place – There is something to be said out being in the right place at the right time. Why are everyone’s favorite products always on the middle shelf? Exactly! The sales person knew to put them there. All of this should be starting to tie together by now. Run the demographics of the neighborhood where the property is located. Then use the information to determine where to promote the property.
All of this information may seem a bit rudimentary, but sometimes people just have to go back to the start. Utilizing the 4 P’s of Marketing allows a Real Estate Agent to work smarter, not harder. Which leads back to Dr. Kimball, “You don’t get paid for working hard, you get paid for results.”