How long homes are on the market before they are sold?
What are the characteristics of resale homes?
What are the asking and selling prices?
In the most active areas, what are the product types and price ranges?
The MLS system supplies this information through your local real estate board. You can request reports.
BUYER PROFILES AND THE TARGET MARKET
Buyer profiles define the motivations, lifestyle, and preferences of socioeconomic groups within the market. Data in this area of research is based on the premise that people who share similar demographic and socioeconomic characteristics tend to live in neighborhoods with others who share similar lifestyles, product needs and preferences. This can be used to define the target market, develop the most marketable product, and ultimately increase project profitability.
Research about the buyer profile should answer questions regarding the targeted consumer market, their tastes and living habits. The data you gather helps determine product features, prices, and absorption rates for the planned project. The market analysis should also outline any anticipated changes in buyer profile of the area. This is done by a thorough investigation of any future development. For example, if a market analysis reveals that within the next two years several developments are planned it would be important to insure these would not dilute the success of your proposed development. If the market analysis reveals plans for a major shipyard to be built in the next two years, then you may have the opportunity to develop for a target market that includes lower-income laborers.
Market Analysis Consultants
If your company does not have the personnel to do the extensive research required, it may be best to hire an outside consultant to do the job. The best way to hire a good market analyst is by referral. Try the members of the local Home Builders Association for a reliable recommendation. Seek out those who have the appropriate specialty area. Then, once two or three prospects have been selected, check references and ask questions.
Did the references find their work thorough and useful?
Was the material produced in a timely manner?
Did the client receive any bills above and beyond what was agreed upon?
Was the analysis successful in obtaining the necessary financing?
Once you have hired a consultant, meet with the market research team to communicate the full scope of the new project and explain your information needs. It is equally important to