With the current state of real estate investing, having a well-defined target market is more important than ever. No one can afford to target everyone. Investor/Flippers can effectively compete with other investors, home sellers and new home builders by identifying and targeting a niche market.
Many Investors say "It’s not what you sell the house for; it’s what you buy it for." Others try to target a specific client such as Military, working class, or stay-at-home moms. All of these targets are too general.
Targeting a specific market does not mean that you have to exclude people that do not fit your criteria from buying your home. Rather, target marketing allows you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable, efficient, and effective way to reach potential clients and get your home off the market.
For example, an investor could choose to market to first time home buyers between the ages of 25-30 with incomes of $90,000+ in the San Antonio
, Texas. To define the market even further, the company could choose to target only those interested in kitchen and bath. This market could be broken down into two niches: young professionals and credit marginal buyers.
With a clearly defined target audience, it is much easier to determine where and how to market your company. Here are some tips to help you define your target market.
1. Look at Your Current Customer Base:
Who are your current customers, and why do they buy from you? Look for common characteristics and interests. Which ones bring in the most business? It is very likely that other people like them could also benefit from your product/service.
2. Check Out Your Competition:
Who are your competitors targeting? Who are their current customers? Don't go after the same market. You may find a niche market that they are overlooking.
3. Know your Financing:
What lending products set you apart? What are the benefits? You don’t have to be a loan officer, just understand the general difference between products and how they work.