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The new way to attract more buyers in a downturn market

In a downturn market, properties don't easily sell for more than the asking price with multiple offers. Instead, realtors need to actively reach out to potential buyers. To succeed, you must be active on social media and have your contact list prepared for communication. But what should you post to capture attention? The answer is to share unique and relevant information that makes your listings stand out. The challenge is finding this valuable information.

Most of the Realtors share the same information about a property because they use the same source, the MLS. While this data is relevant, it is not unique. The listing agent typically has the most comprehensive information about a listing. What gets left to the Buyer's agent? In most cases, the listing agents share information about the existing property, but not about the development opportunity or its expansion potential. At best, they'll use terms like "imagine", "lots of potentials", or "bring your contractor" inferring this opportunity, but they don't offer the possible new building area numbers you could build on that lot. Without this information, the above statements mean nothing to the average home buyer.

Now, imagine that a prospective buyer stumbles on a Facebook or LinkedIn posting stating:

"Hot property on the market! This property, located in the trendy Marina neighborhood, has an expansion potential of 166% ! This means that you could potentially add 3,652 sqft to the existing building. Based on the average sell price in the area, this property has a ~$ 4M untapped potential. DM (direct message) me to schedule a viewing!"

How attractive would be for a prospective buyer to see this posting? A LOT!!!

But, where can you find this information when your budget is very low to none, nor get into trouble by making false statements?

Showing the Development Potential of real estate properties is the new way of attracting buyers

Realtors have to stand out with real data about real estate development. CityStructure.com did the heavy lifting to automate the calculation of the Development Potential to show the maximum building area for every property. Realtors can share any information from this website with potential buyers along with "per CityStructure analysis" and it is FREE.

Buyer’s agents can secure more deals by using property development analyses.

3 Steps to attract buyers with development opportunity

Step 1: Make a list of properties you want to market

Now that you know where to get the possible expansion information for a property, you just have to go into your MLS account and make a list of all the properties you want to market.

Step 2: Select only the properties with +100% Development Potential

The way you know which one has this development potential is by going to CityStructure and typing each address on your list. You'll notice that not every property presents development opportunities. So, the best is to make sure that the Development Potential is above 100%. Below is an example:

Step 3: Send out messages and post on your social media your findings

With the information about each property, it's time to attract buyers with exciting messages.

Below are a few examples of posts and messages using the development opportunity:

E-mail message to a prospective buyer you already know:

"Hi Ema,

I hope my message finds you and your family well. I'm excited to share with you that I found a property in the neighborhood you wanted and under your budget, $1M.

The only problem is that it has only 2Ba+2Ba in a 700 sq ft conditioned space out of the total 2,088 sq ft building area. The good news is that, based on the CityStructure analysis, the existing building can expand as much as 5,500 sq ft and it could have a total of 4 units + ADU. That means you could add the building area you need and have up to 3 units that pay off the construction and purchase costs.
Let me know if you'd like to schedule a viewing for this property and if you'd like to explore more properties with expansion potential.

Here are some stats for this neighborhood:

Avg. rents for 2bd = $2,150/mo. (for the ADU)

Avg. sale price = $1,000/sqft (5,500 sqft - 2,088 sqft = 3,412 sqft or ~$3.4M untapped potential)

Avg. cost to build = $400/sqft (3,412 sqft x $400 = ~$1.4M construction budget)

Best,
Your team John and Elena"

E-mail message to your list of prospective buyers:

"Property with Development Opportunity that has ~$3M Untapped Potential for only $1M!

This is a lovely 2Ba+2Ba single-family home on a 2,500 sq ft lot in Mission area and it has 263% expansion potential, based on the CityStructure analysis. The existing ~2,088 sq ft building can expand as much as ~5,500 sq ft and it could have a total of 4 units + ADU.

Let me know if you'd like to schedule a viewing for this property and if you'd like to explore more properties with expansion potential.

Here are some stats for this neighborhood:

Avg. rents for 2bd = $2,150/mo. (for the ADU)

Avg. sale price = $1,000/sqft (5,500 sqft - 2,088 sqft = 3,412 sqft or ~$3.4M untapped potential)

Avg. cost to build = $400/sqft (3,412 sqft x $400 = ~$1.4M construction budget)

Best,
Your team John and Elena"

Posting sample for your Facebook, LinkedIn or just a Twitter posting:

"New property on the market! Only $1M for a single-family home in SF that has an exciting 263% Development Potential, per data provided by CityStructure. Great price point for a family to move in right away and build later, or for a developer!

DM me for more details.

"Only $1M for a property in SF that has $3M untapped development potential, based on CityStructure (buyers to verify)! DM me for more details."

Now that you know where to get the possible expansion information for any property, and you have templates for your marketing campaigns, you just have to go and get your buyers!

Get specific answers on costs, size, and value with a Development Analysis.

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