Marketing NSP Properties

Transcription

1 U.S. Department of Housing and Urban Development Marketing NSP Properties March 15, 2011 Community Planning and Development

2 Moderators and Q and A Format Moderators David Noguera, HUD John Laswick, HUD Hunter Kurtz, HUD Lawrence Williamson, ICF Courtney Smith, ICF How to ask questions Change status in Live Meeting from green to purple Press *1 to ask a question through Premiere Conference Provide Name and Organization If question already answered, press *2 to remove from queue Change status back to green after question answered 2

3 Agenda Webinar focus: Marketing, sales & leasing of NSP properties Participants will learn: Typical barriers to marketing Market Research-How data about market supply & demand ties into effective marketing strategies Preparing the Marketing Plan Implementing the Marketing Plan Wrap-up & Questions 3

4 Barriers to Success NSP requirements are unfamiliar to buyers and may require more time than open market sales Application, income eligibility, counseling, etc. Difficult to identify eligible homebuyers Those who want to buy and qualify for first mortgages Negative perceptions of target neighborhoods Challenges of buyers with a wide range of incomes NSP assistance needed, may vary in amounts and terms Challenges of structuring recapture/resale provisions 4

5 Overcoming Barriers Design program and marketing plan so that clients have a clear and smooth path to home purchases Increase demand through good market research, effective marketing, and providing help in obtaining first mortgage financing Use market research to identify micro-areas (in target area) with stronger demand by owner-occupants (vs. investors) Overcome physical condition & crime perceptions Design financial assistance and provide disclosures so that applicants clearly understand terms of NSP financing 5

6 Market Research NSP acquisitions require supply-side research Inventory, vacancy rates, absorption, market rents and sales prices, features, competitive advantages Understanding market demand (more difficult) Select target areas that are feasible for sales Set prices in line with the market Understand who is buying and what they want Consider: Demographics, purchasing power, employment base, migration, commuting patterns 6

7 Market Research (cont) Its best to use a professional for market analysis Market analysis answers to three basic questions: Is there a buyer for my units How quickly & at what price will the units be absorbed How might units be developed and marketed to be more competitive 7

8 Market Research (cont) Data Sources Recent home sales data Reveals prices, addresses, dates of sales & size Online sites like or MLS Real Estate professional & recent buyers Preferences, message & program design Tax assessor data can indicate owner occupancy For broader trends, use sources like Policy Map, Claritas, and other proprietary databases 8

9 Preparing the Marketing Plan Identify the target market Create a compelling message that describes your competitive advantages, including Affirmative Marketing Plan Determine when and how often to release the message Define the delivery mechanism (mode) for the message Track the effectiveness of each mode Track the effectiveness of message Identify resources needed to implement the plan; staff, budget etc. 9

10 Preparing the Marketing Plan (cont) Compelling Messages Why buy this unit? Quality of homes, neighborhood features, pricing, subsidies, energy efficient, etc. Deliver message in a clear simple manner Message should be consistent in all modes and translated into other languages if needed Deliver message frequently over the project period & time the message with product availability Marketing modes how best to get the message across. See next slide for example/ideas 10

11 Preparing the Marketing Plan (cont) Modes of Marketing Website & Links Utility Bills Print Ad Bus Signs Events & Showings Realtors P. S. Announcements Press Releases (free) Community News Paper Talk Radio Social Networks (Facebook) City News Paper Billboards Online-( Grocery Stores Multiply listing Face to Face Door Hanger/Flyers Employers Broker breakfast Direct Churches Cross marketing Mall/Schools/Tradeshows Referral Programs Yard signs Use Fair Hsg info & Logo Signs w/ take-a-ways 11

12 Preparing the Marketing Plan (cont) Other considerations in marketing properties Pre-qualifying Homebuyers for NSP & 1 st Mortgage Who does this & are guidelines streamlined What happen to those that are not ready Sales Agreement, Disclosures & Terms Repayment, Resale/Recapture, NSP Commitment Letter Housing Counseling & Income Certifications Guide to NSP income Certification hudnsphelp.info Terms of NSP Financing: rates and repayment 12

13 Preparing the Marketing Plan (cont) Marketing budget includes costs for: Marketing and design professionals Printing: flyers, brochures, door hangers, cards & signs Website setup and maintenance Paid advertising: radio, TV, magazines, billboards etc Re-branding video footage In house staff or sales agent (Commission: flat or percentage) Average between 7-10% of homes sales (6% broker 4% campaign) 13

14 Affirmative Marketing Use fair housing logo on all marketing materials and in seller s office Fair housing statement on marketing materials: It is the policy of the [insert name of agency] to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, physical handicap or disability. Section 109 Compliant Plan must include outreach to those LEAST likely to apply Applies to NSP grantee that plan to redevelop 5+ units 14

15 Affirmative Marketing (cont) Provide owners with guidance published by HUD Require activities appropriate to project Require owner to report marketing activities and save ALL applications Onsite, interview frontline staff to determine their awareness, consistency of approach, and attitude Watch for patterns interview rejected applicants and occupants If needed require Grantee review of all future applications and reporting on demographic mix for a specified time 15

16 Implementing the Marketing Plan Engaging the Needed Personnel Professional marketing assistance Create messages; design Web pages and marketing pieces (NSP eligible if specific to selling NSP homes) Home sales personnel Market the property, conduct open houses, show homes, prequalify buyer for NSP and first mortgages, prepare for closings, track leads Some NSP developers have this capability internally; others hire real estate brokers Other Sources: SCORE, Work-Study, Temp., Consultants or HUD-TA 16

17 Implementing the Marketing Plan (cont) Traditional Method NSP1/NSP2 Centralized Method CENTRALIZED Point of Contact NSP-1 NSP-3 Developer - 1 R.E. Agent Developer -1 Developer 3 Sub Recipient - 1 R.E. Agent Sub R.-1 Sub R. -2 Developer 4 17

18 Implementing the Marketing Plan (cont) Advantages to Centralized Marketing: Shared Human and Financial Resources Pre-screened buyer leads referrals & sharing Maximize property exposure Common Branding & Image Improved tracking Shared Marketing templates Equalizer for small & large developers Leads transfer from NSP1, 2 to 3 to developers TEAM=Together Everyone Achieves More! 18

19 Implementing the Marketing Plan (cont) Tracking marketing and sales/rental data is crucial Can guide fine-tuning of plan to improve performance Key benchmark: number of homes sold or units rented per month vs. original schedule critical for meeting NSP deadlines Steps along the way can show strengths and weaknesses of current efforts and possible needs to revise program: Monthly numbers of inquiries, showings, intakes, applications, pre-qualifications, income certifications, and sales contracts executed 19

20 Implementing the Marketing Plan (cont) Marketing Example (Florida City s 2010 figures) 537 TOTAL 100% 300 WORKSHOP 56% 78 APPLICATIONS 15% 27 ELIGIBLE 5% 12 HOMES SOLD 2% 1 homebuyer closed for every 45 contacts Marketing should generate several quality leads New climate requires new approaches 20

21 Resources See the Homeownership Toolkit under Resources at it includes: Guide to Marketing and Selling NSP Homes Single Family Development and Sales Program Manual For HUD affirmative marketing procedures, see: ning/web/crosscutting/equalaccess/marketing.cfm For sources of market data see Websites such as:

22 Questions? 22

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