What a Long, Strange Trip it’s Been
Much has happened in the real estate market since December 2008—record foreclosures, record-low mortgage rates and bottomed-out home values to name a few things. For professionals who work within this sector—the agents, brokers and mortgage specialists—these last few years have been a wild and not-so-pleasant ride. But how has the roller coaster been for print and promotional products distributors and suppliers who currently serve this market? Is there room for a return to sustained sales growth?
WHERE WE ARE
"Bottom line: All might not be well in the real estate market. But the overwhelming majority of fundamentals are moving from bad to less-bad, which is a clear sign of a market bottom." – Louis Basenese, co-founder, chief investment strategist, Wall Street Daily, May 24, 2012
"We really had to cut back on everything, primarily on advertising and mailings," said Joanne Scotti, realtor/partner owner for Keller Williams Real Estate, Doylestown, Pa. "Agents are definitely still buying promotional items, we are just buying differently."
If agents are still buying, then reason suggests that distributors and suppliers should still be selling. Lisa Kor, marketing manager for Fey Line, Edgerton, Minn., supported this claim. "We continue to see strong sales for our real estate-focused products despite the recession; however, we have noticed reorders that are for lower quantities than previous years," she said.
Agents' favorite promotions, even in times of distress, have been products that leave a long imprint. "The best products for the real estate market ... leave a lasting impression," said Kor. "Something that is both useful and seen on a regular basis to create name recognition, like calendars and kitchenware."
"We are still doing annual calendars," confirmed Scotti. "In today's selling climate, what we are looking for in a promotional product is something that will last a long time when placed with a client."
Dan Kielman, vice president of sales for American Made Cutlery, Waverly, Iowa, agreed. "[Agents] see the power of having their name and logo permanently etched on the blade of a knife that is used several times a week and will still be used 20 years from now," he said.
After the longevity prerequisite is met for a promotional item, the next key factor in deciding which product to buy is its ability to increase face time with clients. "Products for the real estate market have expanded [beyond] name recognition to also [include] face recognition," Kor stated. "Agents are looking for promotional items that offer the ability to include their photo."
But everything comes down to the final and most important key element—price. "The items that were costlier are the things we've done away with across the board," said Scotti. "Lower cost items like postcards after a property sells are still being utilized and are still an important tool to generate interest. Another inexpensive item I love to leave behind after I show a house is a bookmark. It is a product that has lasting appeal," she said.
WHERE WE ARE GOING
"It is no longer just the investors who are taking advantage of high affordability conditions. A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices. The general downward trend in both listed and shadow inventory has shifted from a buyer's market to one that is much more balanced, but in some areas it has become a seller's market." – Lawrence Yun, chief economist, National Association of Realtors (NAR), May 22, 2012
The NAR recently reported: "Total existing home sales increased 3.4 percent to a seasonally adjusted annual rate of 4.62 million in April from a downwardly revised 4.47 million in March, and are 10.0 percent higher than the 4.20 million-unit level in April 2011." With data like this pointing to signs of recovery, Scotti was cautiously optimistic about the future health of the real estate market. "We are starting to see an upswing now," she said. "Growth will be relative to the individual markets served, but for most agents, I do believe the worst is over."
Regardless of how slowly or quickly markets pick up there is one thing that remains true: "No matter what is happening with the economy, people will always need a place to live and a means to buy and sell homes," Kor said.
While home sales may not return to the same levels they were at in 2005 and 2006 any time soon, there will still be a volume of homes moving on the market. This is good news for distributors in this niche. Scotti believes promotional buying for agents will continue to be a necessity. "We may be doing more e-mail blasts these days to save on mailing costs, but there are certain core products, like calendars and magnets, that simply won't be done away with," she concluded. 
PRODUCT SAMPLES
Realtors will be guaranteed name exposure with the KVR-101 Emergency Info Jotter from Finn-Line. Emergency and contact information is captured on the product's write-on/wipe-off flexible vinyl surface with a light adhesive to be displayed anywhere—especially in the kitchen—in any home. Use any non-permanent marker to update information as needed. The item is a great promotion to distribute at open houses, home shows and festivals. It also fits inside a #10 envelope for easy mailing. For more information, visit www.finn-line.com.
Specialty Business Cards from Stouse are 4-color process printed and their unique look will distinguish any real estate agent. The cards are overlaminated to create a .020" or .030" thickness. Core material choices include white, clear, silver or gold. Customers also have the option of adding a matte varnish to make the cards pen receptive. For more information, visit www.stouse.com.
With Knives from American Made Cutlery, slicing and dicing has never been so easy. Savvy realtors give kitchen knives and utensils with their logo on them to ensure they are top-of-mind when their services are needed. The knives are made in the USA and come with a lifetime guarantee. For more information, visit www.americanmadecutlery.com.