6 Top Tactics for Real Estate Direct Mail Marketing
Everybody loves getting something that’s personally addressed to them in the mail. Although not as commonly used in some industries, direct mail marketing can be an extremely effective tool for real estate agents. If you target the right prospects with the right message, direct mail marketing can help you grow your business.
How much does direct mail marketing cost?
Direct mail is a relatively inexpensive way to get your personal brand in front of a large number of people. The costs that go into a piece of direct mail include design, copy, purchasing a list, printing, and postage.
If you have more money than time, you can hire a designer and a copywriter. Hiring a designer will cost around $100 or more, and a copywriter will cost anywhere from $100-$400.
Next, you’ll need to have the mailing printed. There are several factors that can affect the cost of printing your direct mail:
- Paper quality
- Page number/front & back
- Black & white/color
Printing can cost $.03 to $2.00 per piece. Make sure to find a reputable printer and review all costs before selecting one.
You’ll also need a list to send the mail to. Free mailing lists can be found through existing clients, by trading with another business, or by building your own through public records. If you aren’t able to build your lists this way, you can expect to spend 20 to 30 cents per record.
Finally, you’ll have postage costs. Postage costs can vary depending on the number of items you’re sending, how much each piece weighs, and current postage rates. Expect to pay $.25 to $2.00 per piece for postage. Postcards are a popular method for real estate direct mail marketing due to their size. They cost less to create and mail than other options.
Want to save some money? You can always design your direct mail piece yourself or use a template. This will cost you nothing but time.
Why use direct mail marketing as a real estate agent?
Through direct mail, real estate agents can reach property owners who are looking to sell from any part of the country. Direct mail also provides real estate agents with a chance to connect with a massive amount of potential clients in their local area.
Clients want to do business with someone who is considered a local expert, so when they keep seeing your name and your face associated with the local real estate market, they assume you are the expert in that area.
Who should I send direct mail to?
You should send direct mail to your target audience. That means if you sell luxury properties, send mail to higher-income families. Think about where they hang out, what their hobbies are, and what they spend money on. Figure out who your target audience is and make sure your message is designed specifically for them. The following groups of people should also be considered for your mailing list.
Absentee homeowners are owners who own property they don’t use as their main dwelling. This can refer to investors, landlords, those who have inherited property, or people who have moved and just haven’t been able to sell their property yet. This group is sometimes very anxious to sell their property and is a great group to send direct mail to.
If a property owner hasn’t specified what they want done with their property when they die, the property goes into probate. When this happens, those who are left to clean it up and sell it are usually looking for the fastest and easiest way to get rid of the property. This audience is a great group to send direct mail to.
Landlords who have gone through the process of eviction might also be highly motivated to sell their property because having someone evicted is a lengthy and expensive process. Put landlords on your mailing list too.
Pre-foreclosure refers to the first phase of a legal proceeding that can end in a property being repossessed from a defaulted borrower. Reaching out to those facing foreclosure with possible solutions through direct mail marketing gives them hope they’ll be able to avoid foreclosure and can bring new clients to your door.
Expired listings occur when a real estate deal doesn’t go through. There are a lot of different reasons for expired listings. Targeting expired listings through direct mail can generate a lot of leads.
Local governments can force a tax sale on a property that is tax delinquent. A well-timed direct mailing could encourage the owner of a tax-delinquent property to sell before the tax sale occurs. Tax delinquent properties are public knowledge, and they aren’t hard to find.
Assets are often divided as a result of a divorce, and parties involved sometimes need to sell their property as soon as possible. Most divorce records are public knowledge and can be found online.
6 tips for effective direct mail marketing in real estate
Understand the local market. Clients want to work with people who are experts in the local market and who know the local area and the value of the property.
Be timely. Know what time of year people are looking to buy or sell so you can schedule your direct mailings to hit those target markets at the right time.
Make your mail useful. Provide real helpful tips and information for people. Include info on community or seasonal events.
Get creative. Consider adding a physical item to the mailing. A desk calendar or magnet is something that will keep your personal brand in front of them every day. Maybe you include a booklet with relevant resources. The sky’s the limit!
Create a sense of urgency. There’s no time like the present to act. Make sure your recipients realize that by emphasizing limited time or seasonal opportunities. When your direct mailing creates a sense of urgency, your prospects will be motivated to act.
Stand out. Make sure your direct mailing stands out. Use your personal branding in the design of the mail. Keeping your brand in front of prospective clients on a regular basis will allow you to stand out in the real estate industry.
For more information on the power of direct mail marketing for real estate agents, check out our core course, Sell It Like Serhant Real Estate Core.