Here’s Why Pelow is Winning Nigeria’s Housing Market
The lack of affordable housing in Nigeria is a well-documented problem. The housing backlog reportedly stands at 17 million houses…Read More
Pelow is a mobile platform that provides access to affordable deals on the global real estate market. Our growth is directly related to yours because as a community one thrives when the others thrive as well. Hence, the importance of understanding our growth strategy can be identified in our overall marketing efforts, which focus on employing many digital tactics to engage our target audience and promote growth. We also leverage offline marketing techniques to empower memorable experiences from our users. To elaborate on these methods, here is a close look at Pelow’s marketing strategy and overall growth strategies.
According to a 2019 study by Pew Research Center, millennials are people born between 1981 and 1996. They make up a quarter of the global population and can potentially become the largest generation in the United States. They are one of the most talked-about generations in the business world since they constitute a large group of consumers.
Since millennials make up a significant part of the world’s population, we cannot overlook their purchasing power. Pelow appeals to this generation in the following ways:
1. By understanding what they value most
We can successfully appeal to this generation because we understand how they differ from other generations. Millennials like it when the media they consume is relatable, which is why we use user-generated content for marketing. They are tech-savvy and more likely to perform transactions using their mobile device than any other generation, which is why Pelow is well-suited for them.
2. By helping millennials raise money for their real estate needs
Our platform allows people to raise money for their real estate needs. And that is one feature that will benefit Millenials since they have less money compared to older generations. We make it possible for people to sell, rent, or purchase real estate from the comfort of their homes by just clicking a few buttons on their mobile devices. Since millennials will always find easy ways to do things, they will love this feature.
3. By making real estate affordable
Pelow gives you access to the best real estate deals you could ever think of. The major reason why many people overpay for real estate is the lack of knowledge at negotiations. Many people lose out on real estate deals like sales and rentals because of unwillingness or inability to negotiate adequately. However, we are able to provide affordable real estate by handling this “negotiation gap.”
4. By understanding the factors that affect their purchasing habit
We partner with agents since they can greatly influence the amount people pay for real estate. Our platform is designed to help discourage the upsell of housing by agents. So you are sure of getting the best possible deals. Also, Pelow has an AI chatbot that provides information to both agents and potential buyers. And this makes the negotiation process much easier. Pelow FAQ
One thing millennials have in common is the desire to save, so our ads evoke feelings of responsibility, financial security, and self-reliance. Millennials also love social media and get most of their information on channels like Twitter, Facebook, Instagram, etc. That is why we take advantage of various social media networks for marketing.
Many people lose out on real estate deals because they don’t know how to negotiate adequately. Although your agent will help you along the journey of purchasing your home, the final decision is up to you. These tips will improve your negotiation skills and help you get the best deals possible.
1. Do not waive formalities because you love the house.
No matter how much you love the house, do not waive the formalities of home buying while trying to close the deal. Ensure to perform proper home inspections and appraisals. These steps are called contingencies and will help you prevent wasting your money. You wouldn’t want to buy a home only to find out that the identical house close by sold for a lower price.
An appraisal will help you find out what the house is worth. And if you wish to take out a mortgage, your lender will not allow you to skip this step. Don’t try to make it easier for the seller by skipping the appraisal. You may want to sweeten your offer in an effort to get the deal.
Well, you can do that by paying some of the seller’s closing costs or by offering a quick close. If you’re buying a first time home buyer, you have an advantage over other buyers, and that is speed. Most people can’t buy a house until they sell their old home. You can act faster and close the deal before they do.
It is normal to have your emotions tied up while choosing your home. But you should always remember that it is a business deal.
2. Look Beyond the Price of the House
You have made a budget, and you come across a house with a low price. Your first thought may be to purchase it. But it would be best to add on the cost of replacing old appliances and maintenance before you do this. Looking beyond the house price will help you avoid expenses resulting from repairs.
Furthermore, you should consider the additional costs that come with landscaping, remodeling, and repainting before making your purchase. The best practice is to calculate the total cost of owning the property while developing your offer. Once you know this, you can then negotiate based on the total cost of owning the house.
Sometimes the seller may not be interested in the price alone. He may need to sell his house quickly because he is relocating to another part of the country. Also, his new home could be underway, and he needs to rent from you before it is ready. In this case, being accommodating will help you get the best deal.
3. Don’t refuse to back down on small repairs.
The house you are trying to purchase may require small repairs. Before you lose the house over this, consider the cost of the repairs. If it costs you, say, below one percent of the house price to repair it, you should go ahead with the deal. But take your time and don’t make abrupt decisions.
While negotiating the house price, you should keep in mind that it is not for the sake of winning. It is about getting your desired home on good terms and at the best price possible.
4. Don’t fold just because the inspection uncovered some issues.
An effective house inspection usually turns up several things. You may think this is bad, but far from it. It means that the inspector is doing a great job. Only on rare occasions do homes pass an inspection without any issues.
Most of the issues you may discover during an inspection easy to handle. You have two options; you can request that the seller should do the repairs, or you can ask her to knock off a certain amount from the house price so you can handle the repairs by yourself.
It could be a plumbing problem, or the roof might be leaking. Whatever the case, don’t be scared as these issues can be negotiated and fixed.
5. Don’t get hung up on a few bucks.
While negotiating, the seller might insist on a price a few bucks higher than what you’re offering. Before you decide to call it a day, you need to the from a few calculations. For instance, if the seller insists on $400,000 and you offered $396,000. The difference is $4000. It may seem like a lot, but when you look at it critically, it isn’t in the house-buying world.
Now consider an interest rate of 4% with a down payment on a 30-year mortgage of 20%. The extra $4,000 will only add $16 to your monthly payment. You may need to cut a few things out of your monthly budget to close the deal. But if you can do this, it may be worth it.
6. Don’t offer less because you do not like the décor
You’ve looked at the house, and the décor seems hideous. Now your next line of action is to offer less. Don’t be too fast to do this. Ensure that you know the market before making any decision.
Knowing the market will enable you to find out if it is a seller’s market. If so, offering less may seem like an insult to the seller, especially when the house is in good condition. And as a result, you will lose your dream home.
The best way to avoid this while making your offer is by looking past little things that can be easily changed. Try to focus on important things like the bones of the house and the location.
7. Don’t bypass the opportunity to make an offer because the house is overpriced.
When you choose not to make an offer because the house is overpriced, you may lose the opportunity of purchasing your dream home. The inventory of houses for sale contains many overpriced gems. Knowing how to identify them will make the search for your dream home easier. Once you find such a house, you can now start negotiating.
Don’t assume that the seller knows that his house is overpriced and that he would have lowered the price if he wanted to sell for less. Also, you may think the seller had turned down many low-ball offers because someone offered a reasonable price. That is not the case most times.
In fact, most of the overpriced houses you may come across have never had a serious offer. So, it is wise to see every overpriced home as a potential bargain.
You can start by asking your real estate agent for certain information about your area. He will tell you the average number of days on the market for your area. With the way listings are designed, it is usually easy to compute the days on the market (DOM). Request list a list of all the houses that have lasted on the market for more than the average DOM.
Your agent can easily get you this list, and if he’s a specialist in your area, he’ll have more useful information for you. He has been to those houses and knows everything about their conditions. And of course, he knows which houses are overpriced and can share the information with you.
Suppose a house on the market has an asking price of almost $750,000 for a few months. That same house may sell for about $600,000 in a hot seller’s market. But the market may be softening, and demand could be decreasing. Or, the sellers may have relocated to another area and left the house unoccupied, and the listing agent has no idea that the house is overpriced. Also, the sellers may become more motivated.
In these scenarios, if you can negotiate with conviction, you will get the best deal. While negotiating, the insights you gained through your agent will come into play. Such information as the average DOM of the house will boost your confidence while negotiating. You will be sure that your offer is the only one on the table.
Your offer will be more attractive to the seller if it does not include the sale of your existing house as a contingency. Also, you can offer a huge earnest money deposit to help convince the seller that you mean business. If you want to strengthen your position, point out market conditions to the seller.
Mention all the homes in that area that sold at better prices. When you can back up your offer, you will have a better chance of getting your desired home at a very reasonable price.
The Pelow app is an impressive innovation to the global real estate industry. Our marketing strategy employs many digital tactics to engage our target audience and promote growth. Pelow has an AI chatbot that provides information to both negotiating parties to facilitate negotiations. With such access to useful information at negotiations, you are sure of getting the best deal. We have more articles that we think you may enjoy such as the 8 Steps to Buying a Home and Renting a Home Tips.