5.25%
The anticipated mortgage interest rate by the end of 2023.
(Bankrate)
For distributors and the markets they sell to, it’s a delicate dance. On one hand, distributors are expected to know a market inside and out to provide the absolute best solutions. And on the other, they need to actively diversify their client base – the wisdom of which has once again been proven by the events of the last few years. Distributors must broaden their knowledge and go deep when it matters most.
So let our annual Big Markets guide help. We take a look at five of the biggest markets for promo, and offer the top-down view as well as surefire strategies from distributors and winning product picks. If you’re looking to get into a new market or drive your success in a current one, we have you covered.
After a heady 2021 marked by eyewatering home prices (fueled by a slew of factors including low interest rates, robust personal savings and short supply), the Federal Reserve tried to put the brakes on overall inflation with a series of base interest rate hikes in March last year. That had a significant impact on the housing market, with interest on 30-year fixed-rate mortgages rising from around 3% in Q1 to more than 7% by Q4. According to Realtor.com, the number of homes on the market in January 2023 had increased 65.5% year over year, while the number of homes under contract fell 31.9%. Housing starts were also down 21.4% in January 2023 year to year, according to the Census Bureau. Buyers are putting off purchasing or building until rates come back down or they save more for a down payment – a challenging task with persistent inflation.
Still, real estate agents and related entities – like lenders, title companies and inspectors – can be prepared for a market comeback. Already analysts say we could be looking at a slight thaw, as interest rates fell a bit in Q1. For those transactions that get to closing, agents and lenders could use thank-you gifts, while service companies (which cater to customers beyond real estate) have ongoing marketing needs.
Product Pick
SMALL ATTENTION-GRABBERS like these mints in a domed tin (300-SM-HS) can be given out at open houses, listing appointments and events.
Product Pick
A FUNCTIONAL ITEM like this Montclair maple cutting board (M010) makes a nice closing gift. Put the buyers’ new address on one side and your client’s name and brokerage (real estate or mortgage) on the other.
4 Distributor Tips
Tim Holliday, co-owner of Children’s World Uniform Supply (asi/161711), does work for real estate agents (including his own), as well as mortgage brokerages, attorneys, inspectors and plumbers. He offers four suggestions for selling into the promo real estate market.
1 Take the time to prospect. “Some agents use a lot of promo, while others need convincing or don’t think it’s worth it,” Holliday says. “In my experience, those extremes are greater in the real estate industry than in others.” Consistently use self-promo items to demonstrate the impact of branded products.
2 Remember closing, holiday and referral gifts. The promo industry is full of options for different sized transactions, as well as recognition pieces for referral sources and top producers. “I’ve done everything from return address stamps for new homeowners, to cutting boards, to food gifts,” says Holliday.
3 Think about related entities. Consider attorneys, lenders, title companies and service businesses like inspectors, electricians and plumbers. One of Holliday’s plumber clients recently undertook a complete rebrand – including new uniforms, magnets, keychains, business cards, letterhead, pens, USBs, playing cards and a tent and table cover for events. “Their brand is cohesive everywhere,” he says. “It paid off for them, with business up a ton.”
4 Present year-round apparel. Allow agents to self-promote with garments featuring their brokerage name. Include T-shirts, polos and caps for spring and summer, along with quarter-zips and puffer jackets for the colder months. And don’t forget tote bags that can be used throughout the year. They’ll keep their brand top-of-mind; successful sales often begin with a chance conversation.