Cotton & Company’s 5th annual consumer survey is underway. The annual online report surveys prospective homebuyers throughout the US to gain insight into the current buyer's psychology. With more than 700 respondents providing insight on the factors that affect their purchase decision, the data has become an industry standard for forecasting residential real estate trends.  As the data continues to be analyzed for the final report, early indications show liquidity has returned to the market.

When asked about their reason for not purchasing to date, the consumer response “Can’t sell my existing home” dropped significantly from the 2011 market data. As additional support to this position, consumer interest in “Waiting for Better Pricing” has dropped to 8%, from the highpoint of 29% in 2010.  In addition to information on timing, size of home and other product related questions, The 2013 Cotton Report will also provide insight into the use of new technology and social marketing for researching new home opportunities.

Keep an eye out for the final results to be published in the coming weeks. 

As with all cycles, the current market rebound has provided us with an opportunity to re-evaluate our lead generation efforts and to revisit our past successes. One thing that we’re constantly reminded of is that the real estate industry is all about timing. Today, inventory is at its lowest point in six years, and the local and national media are recognizing the market’s return. The timing is right. What’s next?

1.  Look to Database. If we’ve been really good students of the game, we’ve spent this interim period wisely by educating our prospects, laying the groundwork and nurturing their interest in your property. Now that they are ready to “jump off the fence,” we may even have a slight advantage.

2.  Communicate. Now is the time to reach out to EVERYONE in the database and make a fresh assessment. The cost to keep relevant communication in their sphere of awareness is minimal. The cost of losing a lead to a competitor who keeps his project in front of everyone is immeasurable. Lifechanging events happen every day.  A lead that went cold a year ago, could be hot today.

3.  Convert the Ones You’re With. Real estate professionals understand the value of their “book of business.”  Even those prospects that may have previously been moved to an attrition category should come up for review. We are constantly hearing from sales offices around the country that this current market rebound is bringing us repeat visitors from 2-4 years ago, and many of those prospects are now ready to make a deal. Never underestimate the value of your database--they are the low-hanging fruit.

4. Happy Endings/Happy Beginnings. Once the sale is made, the selling doesn’t stop. Every new home buyer should be an instant resource for referral leads. Ongoing communication with your residents will continue to generate leads for the future. It is imperative to foster an ongoing conversation through social marketing. Utilize Facebook, LinkedIn, Pinterest and YouTube to share the excitement. Maximize the use of digital resources to provide ample opportunities to share your story with friends and family.

It’s time to use all of the tools in your toolbox. An informed prospect is your best opportunity to convert to a buyer and become a great referral source. For more information or assistance in developing your communications plans, visit TheCottonSolution.com or contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it . 

In regional marketplaces across the country, real estate brokers are seeing the light at the end of the tunnel. Although the downturn has been prolonged, brokers stand ready to drive success as the market rebounds. With the national media promoting the rebound of the housing market, brokers are anxious to earn those illusive commissions. And that’s the name of the game – making money.

As the developer or owner of a new residential community, brokers can provide a quick burst of momentum for your program. Here are some things you do to capture their attention and their clients:

1. Communicate and educate. A strong broker partner is a resource for his clients. He/she knows what is happening in the market – where the opportunities lie, what’s selling and at what price point. Don’t assume the broker community is reading everything you are. Be deliberate in your communications to keep them updated on your progress.

2. Make it easy. Every broker has a database of potential clients they are working with. The easier you can make it for them to share the details of your offering the better. Make sure you remove your direct contact information to protect the broker’s relationship with his/her clients and consider customizing your marketing materials with the broker’s photo or contact information. They want to look good to their clients, why not help them achieve their goal as well as your own.

3. Develop a plan. Most sales teams are focusing on their prospect database, but your broker database is equally, if not more, important. Structure an action plan for outreach and follow up for the real estate professionals in your market. It’s important to maintain top-of-mind awareness so when that buyer asks them about available product, you are included in their presentation.

4. Be happy to write the check. It doesn’t matter how much effort the broker puts into the presentation or closing of the deal. The only thing that matters is that you were introduced to the client. Paying a commission to someone who only had to give you a name is the best thing that could happen. Celebrate success.

Remember, general market awareness is critical to the success of both your consumer and broker marketing programs. Often it’s the consumer who will ask the broker about a property they have seen online or read an article about. Although most deals will be written with a broker these days, they don’t always start out that way. It’s important to work both sides of the equation to maximize your sales potential.

Seems like a simple question, but the answer may not be so clear. A discussion panel of ULI industry experts provided personal insight on the future:

Lewis Goodkin – Second home communities are finding their residents are no longer supporting the club structure. Baby boomers want “insulation” not “isolation,” and they are becoming more about necessity than ever before.

Elizabeth Plater-Zyberk – There are three primary obstacles to long-term development:

1) Getting people comfortable with change.

2) Affordability as tax credits may not continue and costs are rising.

3) Transit is a necessity and new roads are not being planned. The roads must come first.

Charles Cobb – Many places still have a need for new housing communities with lifestyle elements as part of the design. Low-cost, healthy lifestyle options including trails for walking, jogging and outdoor activities remain important. Internationally, there is a significant need for the master-planned model developed in the United States in the 1970s.

Andrés Duany – Vertical development is no longer an affordable option. High cost prohibits a young population from energizing key city centers. Youth returns to an area when failed projects become rentals that are below market value. Today, the cost of construction is very high, and young people are pessimistic about the future.

The experts agree it's time to listen to the consumer, but caution that just because they say they want something doesn’t mean they are willing to pay for it. Today, salaries have retracted to levels of the 1980s, but the cost of construction continues to increase. The resulting trend may see architecture being sacrificed for affordability. Demographics of the communities of the future will see much more cultural diversity.