Sample Marketing Plan For A Real Estate Business

This sample marketing plan and strategic overview will help you get started developing your new real estate business.

Having a job in real estate means essentially, that you are your own boss running your own business. As a leader of your mini-organization, there are certain key principles and plans by which you need to operate your company. First and foremost is your business plan - your road map, if you will, for how you want your new small business to operate. Secondly, yet of equal importance to the success of your business, is your marketing plan. Following is a simple 3-step strategic marketing plan for a fictitious company.

3-Step Marketing Plan for Merry Homes Real Estate

1. The Market

It is important to understand the market before proceeding with your marketing plan. You should know statistics about your consumer base so that you can structure not only your business, but also present your company as one that fills a need to the community.

Merry Homes Real Estate based out of Richmond, Virginia is coming into a market that has a home-homeowner turnover rate of about one new home every four years. Typical reasons for the turnover include:

* outgrowing former home

* expanding family

* moving out of the area

* crime issues

* want to be closer to work

* marriage

Statistics on the local market:

* The (mean) average home is 10 years old.

* The (mean) average home sells for $300,000.

* The (mean) average amount of time a home spends on the market is 4 months.

* The (mean) average number of prospective buyers for each home in that amount of time is 15.

* The (mean) average number of bids per home is 2.

* The (mean) average seller adjustment price per home is $20,000.

2. The Competition

In order to excel in business of any kind, you need to set yourself apart from the competition by proving that you do something differently. Part of your marketing strategy will be to incorporate into your plan a provision for taking steps to actually set yourself indelibly apart. However, you must first know who you're competing against for consumer dollars and bids.

3 Most Competitive Business Rivals

A. Allied Homes

5 years old.

Annual sales: $10.8 Million

Number of employees: 3

Number of homes sold: 23

Average home sale-price: $470,000

Net gain: $700,000

Market niche: specializes in old homes, especially in Broad Hills neighborhood, where 10 of their homes were sold. Has a reputation for only taking on more expensive and reputable projects. 80% of homes in portfolio sell within 5 months of being on the market.

B. River Loft Estates

2 years old

Annual sales: $5 Million

Number of employees: 5

Number of homes sold: 20

Average home sale-price: $250,000

Net gain: $270,000

Market niche: specializing in trendy loft condominiums. Has cornered the market in Richmond's trendier sections of town - converted warehouses and above-shops. Is known in the marketplace for selling newly renovated apartments in up-and-coming parts of town. General feeling of public: River Loft Estates knows what's hottest in urban living trends.

C. Richmond Real Estate

10 years old.

Annual sales: $40 Million

Number of employees: 25

Number of homes sold: 75

Average home sale-price: $350,000

Net gain: $5 Million

Market niche: Knows how to sell homes quickly - no matter what condition or part of town the home is in. Consumers know that if they trust their business with RRE, the house will sale. Their success rate is around 70% for selling a house in the first year. Are also known for being the most commercialized and large-scale of all Richmond home-sellers.

3. Three Marketing Strategies

A. Name Recognition to a large-scale audience

1. Distribute business cards in holder to popular local restaurants

2. Buy adds in top 3 newspapers

3. Budget for ad space in local theatre programs

4. Budget for ad space on local public transportation services

5. Direct mail: flyers to high-turn-over neighborhoods

6. Hire high-school students to distribute flyers door-to-door

7. Make announcements or sponsor key neighborhood newsletters

B. Gaining referrals from current or past clients

1. Develop a home-maintenance newsletter to distribute to mailing list of past and current clients

2. Send flowers and fruit bowl to the home of each new buyer

3. Send postcards announcing a new sale in the neighborhoods where you sell homes - and a hand-written note if a client also lives in the same neighborhood

4. Budget for sponsoring programs at or donating money to schools or organizations where your clients work or send their children

C. Securing the sale of more homes to more clients

1. Send personalized notes following each tour

2. With the handing-off of the business card, also hand out a take-away item, such as a pen or bag of personalized candy

3. Always draw up a professional spec-sheet of the home, including full-color prints of photos and a history of the neighborhood

4. Have a calendar for neighborhood events and meetings on hand for prospective clients to do their own research

Now that you have a sample strategic marketing plan for a real estate business, go out there and create your own. Remember: your marketing speaks volumes about your personal and company philosophy. Make choices that will reflect your style and your willingness to be of service to your clients. Good luck!

© High Speed Ventures 2011