Durée Mellion Ross is the CEO & founder of Durée & Company, a results-driven public relations and marketing agency.
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In recent years, real estate has dominated headlines as the industry emerged as a victorious player during and after the Covid-19 pandemic. Since the pandemic, the rules of real estate sales and development have changed. Consequently, PR firms have responded, focusing on key trends such as changes in lifestyle, global nomadism, demand for larger properties, low inventory, rising prices and the rise of wealth. These trends have led to historic real estate expansion.
Today, rising interest rates have many current and potential homeowners rethinking future home purchases. In November 2022, the National Association of Realtors stated that more potential homebuyers were unable to qualify for mortgages in October 2022, as mortgage rates increased. Sales and rental prices are equally affected by rising interest rates.
Now in a moment of transition, real estate is being affected across the board, whether it’s launching a new listing or a new development project. There are signs of a “reset” as market conditions are starting to shift in the buyers’ favor.
Why Is PR So Integral To Success In Today’s Real Estate Market?
Considering a looming recession, when PR and marketing campaigns may already be in place, an even greater emphasis on PR is necessary. While many developers and real estate firms may sway toward instinctively cutting PR and marketing budgets, this is not the time to do that, as times of uncertainty are key for PR.
If you want to weather the storm, you must make an investment in PR. During economic slowdowns, opportunities are still present for developers and residential real estate firms to create awareness for their properties. However, they must understand how to leverage these opportunities and make public relations work harder. Now is the time for planning and being proactive. As 2023 unfolds, it will be necessary to work with knowledgeable PR professionals who are nimble and who quickly respond, pivoting to the rapidly changing market.
Developers should spend more on research, development and advertising during recessions, according to the Journal of Marketing, which has published a number of white papers on the effectiveness of proactive communication and marketing during sluggish market conditions.
What Are Key Strategies For Successful Real Estate PR?
First, do your homework. It’s imperative to have a thorough understanding of factors that affect residential listings and new development, including rates, construction lead times, industry news, trends, cost of materials, financials and more. PR stories that piggyback on these specific trends have a greater chance of receiving press. Uncertainty in the industry has been a theme for 2022. Staying informed and understanding all market conditions and potential scenarios is important so that outreach is relevant and timely.
Then, make a plan. From pre-sale to completion, new development projects are often lengthy endeavors and require a communication plan for each phase. Here, there can also be a focus within the project, perhaps a design-centric penthouse unit, for example, that requires its own PR messaging. There are opportunities to control the narrative at every step of the process, and this starts with an initial strategy and timeline. Have a plan for the worst-case scenario and have key messaging ready. Don’t slow down, as the competition is tighter in a recession.
Get it right the first time. New development projects can make a big impact in their communities, particularly those in destinations that serve as second homes or investment properties for buyers. Positioning is critical as the competition can be fierce. For single-family homes, when a listing is stale, it’s not good news. There’s an optimal window to promote a listing—and that’s why PR is so critical.
How Does Great PR Work Harder During Times Of Uncertainty?
It offers successful workarounds for obstacles.
Many developers are waiting to develop properties in order to mitigate price uncertainty risk, which can cause delays. New development and single-family homes are competing for attention from buyers. A great PR strategy finds ways around these issues.
Markets that are insular versus volatile can largely dictate PR strategies. It’s essential to understand different markets. For example, cities such as New York, South Florida and Aspen set the bar for luxury real estate. While prices have accelerated in these markets, other areas in the U.S. are not experiencing this boom.
Time frames are key.
It’s critical to be quick to adjust to market changes. There needs to be a timeline in place; it is not feasible to quickly put listings up on the MLS and start pitching. Don’t underestimate events and brand partnerships for added visibility, but these take time to develop.
PR can amplify the competitive offerings of a new development project.
Whether the project is designed by a leading “starchitect,” offers resort-like amenities, is technology-focused or has a luxury design partner (think Porsche or Missoni, for example), new development projects can create real estate and lifestyle trends that can trickle down into other housing segments. For projects that may not have a clearly defined hook, PR can help identify and communicate selling points to the audience.
PR has knowledge of how the media now covers real estate differently.
Record pricing is no longer a leading angle, as many markets’ record pricing has already hit its peak and is coming down. Public relations now has to work harder and look deeper for more unique angles than just record-breaking listing and sale prices. Sellers need to be aware of what makes a property unique and other angles that capture stories and inform the PR pros.
In essence, PR and marketing are especially important in a volatile market, and working harder to unearth opportunities pays off in the long run. Being prepared with the right PR efforts is essential now more than ever, considering the recent changes in the real estate market since the Covid-19 pandemic.
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