Marketing NSP Properties Webinar Slides - HUD … · hire real estate brokers • Other Sources: ... –“Guide to Marketing and Selling NSP Homes ... Marketing NSP Properties Webinar

U.S. Department of Housing and Urban Development

Marketing NSP Properties

March 15, 2011

Community Planning and Development

U.S. Department of Housing and Urban Development • 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


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


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

5U.S. Department of Housing and Urban Development • Community Planning and Development

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


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


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


Market Research (cont)

• Data Sources

– Recent home sales data

• Reveals prices, addresses, dates of sales & size

• Online sites like www.zillow.com 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

http://www.zillow.com/


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.


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


Preparing the Marketing Plan (cont) Modes of Marketing

• Website & Links• Print Ad• Utility Bills

• Bus Signs • Events & Showings

• Realtors • P. S. Announcements• Press Releases (free) • Community News Paper• Talk Radio

• City News Paper• Social Networks (Facebook)• Billboards • Online-(www.owners.com)

• Grocery Stores • Multiply listing• Face to Face • Door Hanger/Flyers

– Employers• Direct Email– Broker breakfast

– Churches • Cross marketing

– Mall/Schools/Tradeshows • Referral Programs

• Yard signs • Use Fair Hsg info & Logo

• Signs w/ take-a-ways



• Other considerations in marketing properties

– Pre-qualifying Homebuyers for NSP & 1st 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



• 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)


Affirmative Marketing

• Use fair housing logo on all marketing materials and

in seller’s office

• http://www.hud.gov/library/bookshelf11/hudgraphics/fheologo.cfm

• 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

http://www.hud.gov/offices/fheo/library/part109.pdf

• Plan must include outreach to those LEAST likely to apply

• Applies to NSP grantee that plan to redevelop 5+ units

http://www.hud.gov/library/bookshelf11/hudgraphics/fheologo.cfm




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


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, pre-

qualify 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


Implementing the Marketing Plan (cont)

Traditional Method

NSP1/NSP2

Developer - 1 R.E. Agent

R.E. AgentSub Recipient - 1

Centralized Method

CENTRALIZED Point of Contact

NSP-1

Developer -1

Sub R.-1

NSP-3

Developer 3

Sub R. -2

Developer 4

U.S. Department of Housing and Urban Development • Community Planning and Development18


• 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!


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



• 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


Resources

• See the Homeownership Toolkit under “Resources” at

www.nsphelp.info – it includes:

– “Guide to Marketing and Selling NSP Homes”

– “Single Family Development and Sales Program

Manual”

• For HUD affirmative marketing procedures, see:

http://www.fhasecure.gov/offices/cpd/affordablehousing/trai

ning/web/crosscutting/equalaccess/marketing.cfm

• For sources of market data see Websites such as:

– www.zillow.com, www.mls.com, www.policymap.com

http://www.nsphelp.info/

http://www.fhasecure.gov/offices/cpd/affordablehousing/training/web/crosscutting/equalaccess/marketing.cfm

http://www.fhasecure.gov/offices/cpd/affordablehousing/training/web/crosscutting/equalaccess/marketing.cfm

http://www.zillow.com/

http://www.mls.com/

http://www.policymap.com/


Questions?


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• http://www.surveymonkey.com/s/marketingproperties

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Documents

Marketing NSP Properties Webinar Slides - HUD … · hire real estate brokers • Other Sources: ... –“Guide to Marketing and Selling NSP Homes ... Marketing NSP Properties Webinar