What kind of property is best for which clients? That's the first step in advertising your listings, since that decides who your target market is. Homes, townhouses, condos, and apartments each offer different pros and cons for the buyer, and as a real estate agency, it’s important to know all the ins and outs of each kind of property in preparation for what homebuyers want. Without further ado, let’s discuss what kind of properties you’re advertising, and who to target based on the listing.
Homes: The Pros and Cons
Purchasing a home seems to be the ultimate goal for most people. As such, what exactly does that kind of property entail? What do homebuyers have to consider when it comes to buying a home?
• More space, especially outdoors
• Maintenance responsibilities
• Higher price tag
Based on these pros and cons, the homebuyer’s budget is definitely a factor to consider when advertising your listings. But the freedom that comes with owning a home in addition to the extra space might just make the price tag worth it. Target your home listings towards those who are financially well-established, and are looking for total autonomy over their property. Hint: the average age of all real estate buyers is 47. The median age of first-time buyers is about 33 years old, and the median age for repeat buyers is about 55.
Townhouses: The Pros and Cons
Townhouses are kind of the best of both worlds when it comes to indoor space and outdoor maintenance. They usually have plenty of space indoors and multiple levels, meanwhile the outdoor space is not the owner’s responsibility. So, what makes townhouses a viable option for home-hunters, you ask? Let’s find out.
• Some freedom over aesthetic choices (particularly indoors).
• Similar amount of interior space to a single-family home.
• Monthly fees for maintenance
•Homeowners Association guidelines
Monthly fees can add up quickly, so similarly to homes, target your listings towards an audience that is able to afford the price tag in addition to future expenses. As long as your client can afford those fees (and don’t mind HOA guidelines), it’s worth it for extra space, freedom, and less maintenance responsibilities. It’s worth noting that 74.5% of homes sold in 2019 belonged to HOA communities, and 70% of HOA residents claimed that they have a good experience with community associations. Though some homebuyers may object to Homeowners Association guidelines, the majority don’t seem to mind abiding by such rules.
Condos: The Pros and Cons
While condos and apartments may be similar, the major difference is that the buyer owns a condo, as opposed to renting an apartment. Condos are great for anyone who wants to own a low maintenance property, as many responsibilities fall to the condo association. What makes them so popular for some, and unpopular for others?
• Low maintenance
• Convenient locations & access to amenities
• Less space & less customization autonomy
• Shared amenities could mean less privacy
Condos are great for some homebuyers, depending on their living situation. For example, condos are typically conveniently located and have less space. So, if your client is a first-time buyer, travels frequently, or the number of residents in the unit is on the smaller side, then a condo may be a good match. However, if your client prioritizes privacy and aesthetic freedom, it may be best to explore other kinds of property. Keep in mind that condos are expected to increase in popularity due to demographic changes. The peak age for a homebuyer to purchase a condo is 33, but the largest group of young adults is currently 26-27 years old (with this age group being about 10% larger than that of 33-year olds), opening up the possibility of a lot of condo purchases in the near future.
Apartments: The Pros and Cons
Last but not least, let’s talk about the pros and cons of apartments. Of course, apartment residents don’t own, they rent, and about 37% of all U.S. renters live in apartments. Since they are rented and not owned, there are bound to be restrictions, including appearances and whether or not pets are allowed. Apartments also require perhaps the least amount of maintenance, and are the least expensive out of these four types of property. So, if your clients are looking for an affordable place to live with little responsibility and more flexibility when it’s time to move again, an apartment is a great choice.
• Flexibility when moving
• Little maintenance
• Little customization or ownership benefits
• Landlord restrictions
Apartments are excellent for a younger crowd, since their financial future and/or living arrangements may not be set in stone. There are less responsibilities and it’s easier to afford compared to other kinds of property, so if your client is willing to forgo larger accommodations and aesthetic choices, it’s a great choice for a first-timer as well as a budget-conscious buyer.
The Next Step? Target Those Ads Accordingly
Effective marketing and advertising is all about knowing your audience. If you know your client and what they need, then you have the foundation you need to get the sales you want. So, now that you know who’s best for which kind of property, how do you get the word out there? It’s simple: the Giovatto Agency has a mastery of target advertising. We’ll take your services and listings into account, then create a media mix and marketing campaign based on who your agency should be targeting.
Want to make sure your listings and other ads reach the ideal audience? Get started by contacting Giovatto today for a free consultation!