The housing economy is changing and experiencing positive momentum while the glut of unsold inventory is beginning to shrink, according to The Los Angeles District Council of Urban Land Institute. "The old model has been turned on its head," says Joseph Miller, President of The Runyon Group. The company develops real estate projects in the Los Angeles area as well as advises builders and developers on their projects.
"I look at neighborhoods in Los Angeles or wherever else I am developing and get really into the hyper-local [aspects] ... what restaurants are there, how do people live there, where do people work there? -- and the idea is that before, during the boom times, people could just take a large piece of land and build houses and people would come. Now you need to be really focused on your neighborhood," says Miller.
He says that means that buyers of new construction are more interested in neighborhood-centered projects not a "one-size-fits-all model". And for homeowners who are selling existing homes, marketing and highlighting any neighborhood amenities such as close-to-home shops, walking-distance schools, libraries, restaurants, gyms, playground areas--is a huge plus.
Miller says marketing new developments or existing homes has changed too. "There used to be mass open houses or mass housing developments that were built and people came and bought them and now you really have to tailor your marketing toward the exact people you re focused on," says Miller.
"People are buying a lifestyle not just a house," explains Miller.
Miller says right now buyers have an advantage; whether they re interested in new or existing homes, there s plenty to go around. He says due diligence is required by buyers to make sure they get exactly what they want.
"For instance if you wanted to buy on the West side of town in Los Angeles, I could name 10 buildings that are having foreclosure sales and [buyers] could have their pick," he says.
He says the supply is causing developers to cater to buyers needs more effectively. "Builders need to stand out and show buyers why their product is better than their competitors ," says Miller. And the same is true for individual sellers. Both developers and individual sellers need to understanding that buyers are shopping new and existing home markets, taking inventory of what is available, comparing, seeing how the home will fit into their lifestyle and looking for the added value of the neighborhood and/or project development. That s why many developers are building caf s, big screen viewing rooms, gyms, and other amenities to attract buyers, while individual homeowners are touting not just their home but the latest developments of the neighborhood. While this isn t a new style of marketing it s certainly becoming more important for sellers to emphasize these aspects in order to effective compete and win buyers interest in their home and community.
"Looking out for buyers is important because they have a ton of choices," says Miller. He adds, "Developers are really bending over backwards to pacify their customers. In the past, people who were buying a house had to make compromises. ... We can t just throw up four walls and a roof and expect people to want them. We have to provide them with a terrific product and explain to them why it s terrific." Miller says a top priority amenity that buyers are looking for in housing is proximity and time-saving locations. If your home offers that, it s critical to market those highly beneficial attributes. To find out how your home scores in walkability read my column called: "Can Walk Score Improve the Value of Your Home?"