Do the math and a subdivision would seem to be the best way to make the most money with the least amount of work for a real estate agent. All of a sudden you have 10, 12 or 20+ brand-spanking new listings and each one of them will make you money once they’re sold. On top of that they’re all right there in one place, so you don’t have to run all over town to show them.
On top of that again they’re typically aimed at the same market segment so you don’t have the headache and costs of marketing your two-apartment in the west end one way, your fixer-upper in the east end another way and the waterfront house you have listed yet another way to yet another market segment. Sounds great, doesn’t it? There is just one problem; most agents think a subdivision is a subdivision. It isn’t and that’s the first thing you have to realize when you get one.
According to the dictionary a subdivision is “an area of land that has been divided into smaller areas on which houses are built.” To the developer who builds them, that’s just what it is. To the municipal council who taxes them, that definition will do just fine. Unfortunately for a lot of agents, that definition is as far as they go when it comes to understanding what they have and how to market it. We need look no further than the candy-coated world of wedding rings and true love forever to draw a parallel that will help us see the difference between what people think a subdivision is and what it really is.
Pop quiz: you and your one and only have decided to make it official, tie the knot and combine RRSPs. What you’ll need, other than patience, understanding and compromise, is wedding rings. You’ve narrowed your choices down to two styles that are similar in price and both are in the same jewelry store. Ring A has a poster above it that says, “This ring is made from the finest metal ingredients that have been scientifically bonded under the correct temperature to ensure molecular strength no matter what household chore you do while wearing it.” Ring B has a poster above it that says, “Because your love deserves it.”
Which ring do you think most recently engaged couples would opt for? Anyone who said ring A, please go to the nearest nerd convention and we’ll talk later.
Most of you would agree that ring A is lacking something. It’s being sold as a physical object, while ring B is being sold as a reflection of the love that brought you to that store. A is an object, B is a lifestyle statement of an ideal. A is the ring people want – it’s strong and durable. B is the sentiment people want to go along with the ring, an expression of love.
It’s not much of a shift to move this example over into the world of subdivisions where the same marketing philosophy should apply.
A regular stand-alone listing is usually sold on the physical merits of the house, age, improvements, number of bedrooms and so on. Only a small portion of the marketing addresses the neighbourhood unless there’s something obvious, like it’s close to schools or malls. Most people can drive down the street the house is on and determine if they like that neighbourhood or not.
Your subdivision can be sold as brick and mortar as well, physical buildings where you can sleep and eat that will keep you dry and warm while you do so. You can also sell the neighbourhood in the same way as with a stand-alone listing. That would be fine if a subdivision was a subdivision, but as I said before, it isn’t.
I know what you’re thinking: “Well Debbie, if a subdivision isn’t a subdivision, what is it?”
First let’s be clear on what a subdivision is not; it is not a house, it is not a collection of houses and it is not just a neighbourhood. A subdivision is a community that you help give birth to. Sound a little heavy? Don’t worry, in my next column I’ll help ease the labour pains and give you some tips and techniques on how to market and sell any subdivision that’ll add up to money in the bank. Happy selling!
Debbie Hanlon is a real estate broker who has helped train hundreds of sales reps and brokered and managed a national real estate franchise. She also founded an independent real estate firm. Currently she coaches sales reps all over the world. She is the CEO of All Knight Inc, a global educational mobile company, as well as a published children’s author and the creator of the national I’m No Bully Show. https://www.facebook.com/missdebbieandfriends
