Finding the right target market for a particular property is not a very easy task. However, knowing the buyers persona before trying to sell a property to them will increase your chances of getting the property sold. Not everyone will be interested in every property type. People make buying decisions based on several factors. This guide will discuss the different property types and the ideal target market for each type. And show you how to know who is interested in what type of property.
Factors Influencing the Choice of Buyers!
Before we proceed, some basic factors can influence the choice of property purchased by buyers. Some of these factors include:
| Purpose of purchase | The primary factor affecting your choice is your purpose. For instance, If a place to live is your priority, then your focus will be on residential properties. If you want a plaza for your business, you will search for commercial properties. |
| Personal budget | Some of these property types are more expensive than others. For instance, an industrial property will cost more than an empty land. A construction company owner might need industrial property, but without enough financial capacity, this person would have to settle for empty land. |
| Future investment purposes | Some properties have higher appreciation value than others long term. An investor looking to make a profitable investment for the future might be interested in purchasing only a particular type of property. |
The Different Property Types and Their Buyers Market
Here are the different types of property and the people most likely to be interested in them
1. Residential Properties – Buyers lookout
Every day, people buy homes. The truth is that the residential property sector is never going to go out of business. People will always need a place to live, and most are looking for a more permanent deal, so the residential property business, whether for rentals or purchases, will always be lucrative.
The primary intent of residential buildings is for private living purposes, which could be temporary or permanent. Properties like single-family houses, apartments, mobile homes, condominiums, and townhouses fall under this category. The buyer of a residential property can decide to purchase the building fully or rent it for some time, depending on the rental or lease agreement.
The Target buyers Market for Residential Property
So, who should you target as a real estate agent to sell your residential property? Families. It is 2023, and many young, single people are buying houses. However, it is more common to find families buying homes. As the size of a family increases, they will need a bigger space, hence the need for a new house. So, the main target for residential properties is families and people who have recently moved into a new city.
2. Commercial Properties – Buyers Lookout
The next common type of property is Commercial Property. Commercial properties usually house businesses. Hotels, malls, medical centres, retail stores, and other business-centred buildings are considered commercial property. Most times, how this works is that homeowners build multiple buildings and then lease these buildings to different tenants to run their businesses and generate income.
Investing in commercial property is more sophisticated and usually involves more financial input. Therefore the target for this market is different. Commercial properties are lucrative because people always look for buildings to house their businesses.
The Target buyers Market for Commercial Properties
The commercial real estate market has a specific audience. Business owners searching for different types of commercial properties for either sale or rent, brokers, and investors are the right target for this type of property.
3. Industrial Properties – Buyers Lookout
Have you ever passed by certain areas and noticed that it is only inhabited by industries? This is what an industrial area looks like, usually located reasonably far from residential areas.
It is in the industrial properties that most of the processes required to maintain a nation’s economy are done. Some examples of activities that happen in industrial properties include manufacturing, refining, construction, fabrication, and logistics. Industrial properties are always in high demand. An industrial property could be an empty land or a building where industrial activities occur.
There are five major types of industrial properties:
- Distribution warehouses
- Manufacturing facilities
- Storage warehouses
- Flex space buildings
- Showrooms
The Target Market for Industrial Properties
Who will likely be interested in purchasing an industrial property? First is a company owner specialising in sectors requiring construction, fabrication, manufacturing, and other activities emitting harmful substances.
Next, investors. Industrial properties are a great place to invest because they provide long-term income opportunities. It is very difficult for industries to move locations, so when they find a location, they will likely settle there for a long time.
4. Land
Landed property is a very versatile way of making money. A Land can generate income for its owner without requiring much input. Different people can use the land for different purposes. Several things can be done on an empty land. The options are endless, from agriculture to animal rearing and even for investment purposes.
Of all the real estate property types, land is the least expensive. It is also the property that has the highest rate of sales. It is low maintenance, but it continues to be appreciated. People usually purchase land for several reasons, and their purchase determines the land size they purchase.
The Target Buyers Market for a Land
Lands can be used for several purposes. Farmers and agriculturists might need land for farming, ranching, and other agricultural purposes. Real estate agents might need raw land to build and construct residential, commercial, or industrial structures. Big investors need land for urban development and as a means of investment. The market is quite broad.
Wrapping up
Different people are interested in different properties, and the choice of property largely depends on the purpose of getting the property. With this in mind, you can make a more informed decision about your target market.
FAQs
How can a buyer know what property type to be interested in?
The type of property you need depends on your purchase purpose, interest, and budget. If you are searching for somewhere to live, then a residential property is what you need. As a seller, you can help a potential buyer make the right property decision by thoroughly discussing with the buyer. Find the buyer’s needs and budget and suggest the most suitable property.
Can one property be used for different purposes?
Yes. This kind of property is called mixed-use property, and some big investors leverage this investment method to save money subsequently.
However, not all purposes will make a good combination. Combining a property for residential and industrial purposes is not feasible. Combining land with industrial property might be okay depending on the industry sector. For instance, an Agro-based industry can operate with empty land to produce crops.
Can a target market be interested in more than one property type?
Yes. Sometimes, a homeowner might search for a commercial property to start a business. After a conversation with a prospective buyer, you should determine if that buyer is also a target for another property type. A financially buoyant client can afford both residential and commercial properties simultaneously, depending on the client’s needs.
