Chances are you've tried fear as a real estate marketing tactic. How does fear influence the way your future clients see the home buying or selling experience? We dive in to everything you need to know about this risky marketing tactic.
Chances are you’ve tried fear as a real estate marketing tactic.
If only I had a dollar for every online article and blog post I’ve read about home buying and how “difficult”, “scary” and “challenging” it is.
“Buying a house is exciting, intimidating and, honestly, a bit complicated,” says one agent.
“The first time you undertake a home purchase, the complexity of the transaction can be particularly frustrating because there are a number of unknown rules and procedures that you are generally forced to learn through ‘the school of hard knocks,’” says another.
I cracked up over the combination of highfalutin’ words and the folksy “school of hard knocks” reference in that one but, again, we hear that home-buying is complex, frustrating and full of things you are “forced” to do.
My first reaction to these blog posts and articles is:
“If the process is difficult, scary or complex, you’re working with the wrong agent.”
And, if this particular agent thinks it’s this challenging, he or she is the wrong agent.
It’s an old tactic, really. Copywriters are taught to determine the reader’s “pain point” and jab it, over and over.
“In sales …find out what people’s worst nightmare is, and camp out inside their nightmare, and amplify the nightmare,”
suggests Wyatt Woodsmall, behavioral psychologist. It’s the tactic used by many home-security companies, cosmetic manufacturers and, most especially, politicians.
It’s such an effective marketing tactic (when used correctly), that it’s been broken down into different categories, according to Barry Moltz at SmallBizTrends.com:
Moltz uses his time in sales at IBM as an example. While there were other products similar to but cheaper than what he was selling, he used FUD to get them to perceive IBM as the “low risk alternative.”
Moltz uses the rush to buy health insurance as the March 31 Affordable Care Act approached as an example here.
We see this today in the real estate industry when mortgage rates go down. There’s a definite home buying rush to “buy now!” to take advantage of the rates before they “expire.”
This is more commonly known as FOMO, the fear of missing out. It’s based on the belief that “consumers want to be a part of ‘a club’ that not everyone gets into,” according to Malz. If you don’t join this “club,” you’ll miss out.
Again, fear as a real estate marketing tactic can be quite effective, if done right. The problem in the real estate industry is that most agents don’t come to the industry from the marketing, copywriting or psychology worlds.
Therefore, they lack the knowledge of the proper approach:
Most of the attempts at fear as a real estate marketing tactic we’ve seen, at least digitally, use the first and second parts of the approach but fail, dismally, with the third.
Long-lasting real estate client relationships are built on trust, not fear.
To instill trust, you must first prove that you’re an authority and you can’t do that by stating a problem (“buying a house is scary”) without also articulating the solution (“and, it shouldn’t be. If it is, you’re working with the wrong agent” and here’s why. . .)
“Be an authority, not an alarmist”
cautions Kevin Kerridge at Inc.com. Yes, state the problem that you’ll solve for the reader, “but don’t sensationalize it. . .then provide a solution,” which involves articulating the value you bring to the transaction.
Is your buyer consultation the best in town? Do you walk the buyer through every step in the process and every conceivable problem that may come up and the solutions to those problems?
Do you provide the buyer with a book, e-book, checklists or extensive information on the process on your website?
Perhaps you have a vast network of contacts within the industry that allows you to find homes for sale before they hit the MLS. Whatever your value proposition is, learn how to articulate it in a brief yet compelling way.
And never underestimate the power of testimonials in building trust with potential clients. Testimonials are powerful trust-builders, especially when they provide insight into the benefits your buyers have received by working with you instead of another agent.
Picture the consumer who has been pounded by fear-based marketing. He or she lands on your website and learns that “buying a home doesn’t have to be challenging, frightening or stressful. Let me show you how it’s done.”
When you snag clients using methods that make them feel empowered instead of using fear as a real estate marketing tactic, you’re building long-term relationships.
Those relationships, in real estate, hold the promise of future business. They’re gold mines.
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