February 08, 2022
What Role Do Research Firms Play in New Home Community Marketing?
If you're tasked with land development and design, chances are you already know how important it is to have access to data relevant to the latest trends of your sector. Gaining research insights that are applicable for land planning pursuits helps reduce risk, discover opportunities and establish value.
If you're looking to maximize the land use while adhering to financial realities, real estate research firms are a vital resource where you will want to turn to.
The fact is, research is vital to the success of any business since it describes the market you're in, informs your advertising, sets pricing and guides your response to consumer changes. In new home community marketing, specifically, it is the difference between staying ahead of your competition and falling behind.
Effective real estate research helps land planners and developers select land that is not only practical, but that is capable of producing profitable results. Research firms are an undeniable asset as you critically assess both the existing and potential value of land opportunities.
Here are the benefits that research firms offer land planners in the early stages of master-planned community development, thus setting them up for successful marketing campaigns.
What is a Real Estate Research Firm?
A real estate research firm is a partner you can rely on for the latest research and analysis relevant to property investments, planning and development. They also exhibit an array of expert advice and data on people and companies of interest, significant changes in housing trends, interest rates and more. Full reports and property assessments that would typically take you a significant amount of time to obtain and sift through can also be easily accessed. This research helps your company make smarter, informed decisions and develop a more effective strategy for developing your master-planned communities.
RDLCo names additional resources you would have access to:
- Articles & interactive tools analyzing the latest trends
- Podcasts with expert insight
- Interviews with CEOs and how they're handling things
- Live webinars analyzing the state of the market
- CEO summits that bring leadership together
- Discussion of the latest trends at industry events
Meyers Research/Zonda names four benefits of working with a research intelligence firm:
- Comprehensive Data — Easy-to-read data that influences housing, including monthly and annual historical trends and forecasts for nation, state, county, city and zip code.
- Visual Storytelling — Data in trends and market shifts can be easily interpreted and visualized through heat maps, charts and graphs.
- Succinct Analysis — Get a clear understanding of where the market is in the housing cycle and the latest conditions through curated and insightful housing analysis.
- Exportable Data — Data can be shared with your team quickly and effortlessly through Excel-ready information for home building. This makes it easier to dive deeper into numbers when necessary and generate an investment package at the drop of a hat.
Why Master-Planned Communities Need Research Firms
Once a developer identifies a site, they need to understand how it will accomplish their vision. This is where research firms come in handy with the latest trends, data, advice and recommendations to assist you in not only accomplishing that vision but maximizing your opportunities with that site.
Although certain sites may appear to be highly profitable opportunities based on intuition, it’s difficult to evaluate the potential success that it has long-term. Economic and demographic factors can cause substantial shifts in land value that impact its stability, growth and potential decline in appeal. Without a research firm, it is incredibly difficult to accurately assess the true value of the land with regard to your vision for the new home community.
Research firms have a team of experts at your disposal who are specialized in getting you the information you need and analyzing its contents for you. Going at it alone means you risk inaccuracies, mistakes and wasting valuable funds.
A few of the reasons research firms are critical to the success of your company’s land development process include:
- Minimized investment risk
- Facilitates strategic planning
- Identify threats and opportunities
- Save time on data collection
- Evaluate your business’ success for continued growth
- Ability to stay ahead of the competition
What Role Do Research Firms Play in New Home Community Marketing?
In general, research is significant to businesses because it allows you to take what you've learned and make informed and educated decisions. In new home community marketing, specifically, research firms do this and more. Rather than deciphering the data insights yourself, research firms perform the heavy lifting to deliver all the information you need to set your real estate brand and land development up for success. In addition to aligning with your real estate branding, here are eight significant roles research firms play in the success of your new home community marketing.
1. Market study of the competition
Having a good understanding of your competition is great for any business, but for new home community marketing, it is vital to stay ahead. Firms provide competitive analysis to understand what other developers are doing and better position your company within the market. More specifically, understanding their strengths and weaknesses allows your business to use this information and provide what they cannot for your buyers. Research findings are used to both capitalize on the weaknesses of competitors while also assessing your company’s weak spots and discover where adjustments can be made to further its growth.
2. Refine search area
When it comes to land planning for new communities, location is a highly critical factor in establishing a successful development. Understanding homebuyer segments and the market offers valuable insight on where to buy and what to build. The appeal and desirability of certain sites are highly dependent on the potential buyers, as well as the neighborhood itself and its accompanying local resources such as education, healthcare, retail, recreation and entertainment.
Working with a real estate intelligence firm helps determine which sites are profitable investments that offer valuable appeal for your target buyers and are predicted to have a strong growth trajectory. Although it may seem easy to guess which locations are best for establishing communities with sizable profits, digging deeper with research allows you to reap incredible rewards and higher odds of success.
3. Identify Emerging Trends
Real estate market research plays an important role in identifying the market and buyer trends that can affect land value and potential. Demographic shifts such as age, income and homebuying behavior and economic state changes within an area can greatly impact the demand for new homes, and it’s crucial to be ahead of those trends to strategically develop successful new home communities. Research firms can offer your company influential insight on homebuyer purchasing patterns and demand levels to reduce risk and maximize opportunities to create value.
4. Reach the right buyers
Marketing your new home community successfully requires an intuitive understanding of your target buyer. But first, you must ensure you’re reaching the ideal buyers for your community. Real estate research firms can step in to help research the buyers best suited for your development based on your offerings, development location and business differentiators. After identifying the right buyers, research can be instituted to gain insight into the unique lifestyle, needs and desires of these individuals to determine how your community can deliver offerings with compelling appeal.
5. Product mix recommendation
Every site offers unique benefits that can be uncovered and showcased to buyers through insightful land planning, but this starts by first selecting the best products that will complement and incite intrigue. Based on the competitive analysis, the research firm recommends the best mix of products to use the land for. Not only do you get insight into what your competition is doing, but you also receive strategic advice on the products that will maximize the land use and appeal to the desires and needs of your target buyers.
6. Price point analysis
Based on the analysis, the firm recommends how to price your products. Instead of doing all the research and spending hours deciphering what you collected, you have a thorough, convenient report providing a price point analysis. This analysis delivers an informed and expert recommendation on how to best price your product. Thus, it isn't too high or low, but perfectly competitive. This also helps you set a price point that is more likely to be profitable for your company long-term.
7. Complete ROI guidelines
To achieve the desired ROI, you typically must follow a basic guideline — "If you sell X# of Y products at a price point of Z, you will achieve ROI." It's simple, straightforward and exactly what you need to know to ensure you're not only getting a good return on your investments but also maximizing your ROI potential. Working with a real estate research firm helps your team fill in those blanks and consistently remain on track to hit your intended sales goals.
All of this must be accurate if you want to implement a successful new home community marketing strategy in the future. With a research firm, you have all the best technology, experts and practices on their team, obtaining and sifting through important data for you and your business. With that being said, you're guaranteed to receive the most accurate and up-to-date information on the market that will ultimately lead your business to receive high returns.
Get Help Marketing Your Master-Planned Community
It's a challenge to market your master-planned community in a saturated industry with many options for buyers. Even more so after the pandemic shook up the real estate and homebuilding industry. Research firms help you understand that impact, the change in trends and how to risk-adjust.
Partnering with the real estate and home builder marketing specialists at Milesbrand ensures that every investment of yours reaches the right buyer at the right time and is maximized to its full potential. Get started with our team today!