"Location, Location is key to real estate marketing," says Clinton Peters
By Evelyn Oragwuncha
Monday, August 6, 2007

What has marketing to do with real estate? A lot, says Clinton Peters, a real estate consultant. In this conversation, he explains the place of marketing in real estates business.

Excerpts:
How did you get into real estate business?
I got into real estate business 5 years ago, 2001 to be precise. I discovered I had the skill especially in the marketing aspect of it which required some skills, some knowledge, some relationships.
The trend in the country determines the area to go into, some of us are versatile people so we can’t be stocked in one area, this is why I wanted to know the area you wanted to talk about because I have been involved in so many business. You get to a stage in life and you discover that you have some skills for something, I found out I had some skills in marketing. The business of real estate is basically the sale of information. Do you have a house to sell? Somebody wants to buy and am in the middle doing the work of a consultant.
Trying to bring the buyer and the seller together. We also try to move into the area of development on a particular area. If a house is built in Ota and Ikeja with the same block, the results will be different but the thing is that lands might be more expensive in some area than the other but you might get your returns faster too. I am in real estate today because it’s the trend the country is going today. People need a roof over their heads. Our own is to bring sellers and buyers together.
Initially it was hard because the Nigerians culture does not allow you to sell a property that has either been willed to you or you developed or and built yourself and you want to leave for your children but the time is changing with high demand for accommodation and there is plenty of money in the hands of some people and we want to be part of it. I got into real estate because I study trends in the society and I believe I have the skills. We are hoping to move into one of the states to build a 5 star hotel.

How important is location in real estate management?
Location is everything in business. Location is the first in business. No matter the ideas you have, if your business is in a wrong location it may lead to the death of that business. Location is part of every business consideration apart from capital e.t.c.
It comes with a question of; Where do I locate this business? I wanted to open an amusement park, some people suggested Badagry but my target group lives in Victoria Island and Ikoyi. If roads were good and you could drive down to Badagry from Ikoyi without stress, it would have been easier but for someone to invest a multi-million dollar business in Badagry while his target market is in Ikoyi and Victoria Island it would be disastrous. So location is very important before establishing any important business.
If you locate your business wrongly, it will die. I have personal testimonies, I am into optical business, we discovered that locating the business at remote area was not the best. So we decided to locate the business at shopping malls. We are at Adebola Shopping Malls at Ikeja at City Mall opposite Muson Center, Mega Plaza and Palms at Lekki. People just come out for shopping and they stumble into your outfit and decide to patronize. Location is very paramount in every business, though it may be more expensive but on the long run you will make it.
The whole concept is just bringing the business closer to the people. You see what the banks are doing, building branches in every streets of Lagos, the idea is bringing banks closer to the people. In the religious sector, just like the Redeemed Churches, they are in every street and corners of the city making sure they are closer to the people. So location might not be the ultimate but very important in all business. In marketing we talk about the 4Ps which is product, price, place and promotion. We talk about the product, the price, who are your target group, where do you sell, at what price and means of promotion.

What makes a real estate agent?
A real estate agent is someone who is knowledgeable about the environment, a person who is on ground and versatile and has very good relationship with people. There are different categories of estate agents, the professionals the estate surveyors and also you have real estate consultants like us who are in the position like bringing buyers and sellers and advising them which way to go. But one key thing is if you want to be very successful you must be on ground, you must know people. A good real estate agent must have good personal relationships with owners of properties you are selling. On the other side you must be versatile. If we have properties for banks, you must be able to make your presentation to the bank. If you have a property at Ikoyi and tells me as a friend, I will now sell it to the network i.e the boys in the field and they go about looking for the buyers. You can’t operate everywhere, we have Abuja, Ajegunle, Otta, Victoria Island, Ikoyi. You can segment your area of operation, concentrating on a particular area and if you choose your own area of operation, it means that you must try to know how to source for either buyer or seller. You must know where the rich who sell are and try to reach them. There are those who have been identified as buyers, you equally try to reach them. So your ability to identify and form a relationship with sellers and buyers will make you a good agent. Your background, your education, the people you grew up and went to school with could be the sellers and buyers as well. So such contact is very important. All these put together will make you a good real estate agent.

Are there bad eggs in the Industry?
Of course, like in every industry, there are bad eggs. If you buy the magazine for real estate called the Castle, at the bottom of every page you find caution. They will tell you that advertising a property does not mean they know much about it. They are just doing their job like every other magazine, so you look before you leap. You must be very careful before committing your money. In every industry there are people who claim they are in charge of certain properties that they know nothing about. Most people go to advertise in the papers on their own just because they know that there is a property at Adeniran Ogunsanya for sale and they advertise. You don’t just put in your money without proper investigation, there is bound to be fraud. Buyers are warned to beware. People go as far as bringing the fake original documents deposited with the state government in collaboration with some bad eggs there to present as original documents for the properties. So one has to be very careful.
Recently some bankers with Oceanic Bank on Oba Akran were caught doing this Western Union Money Transfer deals, so you can see that no industry is left out, all industries have bad eggs. This syndrome of get-rich-quick has eaten deep into the system that one wants to work or suffer for his money.

How do you look for business?
Like I said earlier by letting people know what you do else the opportunity might just pass you by. So by word of mouth, let them know what you do.
Secondly by being in the circle, in the environment and knowing what you want. Like the vultures feed on human bodies, so they always look for where dead bodies are. If you segment the market it makes it easier for you. If you want to go to Ikoyi where the rich people are, you make friend with those whom you believe could own such properties and you can also link yourself to any network via Internet, via colleagues etc where you can log into and find our the needs and demands of people.
Thirdly you can look through the newspapers for some publications for demand or request for those who want to buy or sell. So you just have to choose your target market and try to satisfy them. Most times people go to the banks who need properties for their new branches and most times you get the information through the network. People also call from abroad to say they need properties to buy for their relatives or themselves, so it’s a versatile thing.

Are you allowed to advertise?
Agents, surveyors and everybody is allowed to advertise. Another thing is that lawyers have also gone into real estate. There is no restriction people are allowed to advertise.

How do you build a brand?
You build a brand through your versatility. You are knowledgeable, you segment by choosing a particular area, your integrity, and trustworthiness makes you build a name for yourself. Just like in products, you must have a good product; your customers must trust you knowing that your product gives them value for their money and satisfies their needs. You have to be honest, hardworking, your ability not to fail but to always deliver to your clients at the shortest possible time.

How do you negotiate in real estate business?
You negotiate just like in all businesses. You must have the skill to negotiate on behalf of your clients. The rate of inflation and the highest of living affect the negotiation. Negotiation will be based on the past knowledge of the environment where the property is, the demand of the property and the desperation on the part of the seller or the buyer will equally help in negotiation. Negotiation means either buying down the price or increasing it as the case may be depending on the ability of my clients.

How would you define marketing?
Marketing is the search to find the need of the market and you going back to your own drawing board to produce the need of the market. Marketing is the process whereby the needs of buyers are met through the thorough knowledge of the market by the sellers or producers for the mutual benefit of being fulfilled at the end of the day. Marketing is a process of identifying the needs of the consumers, and producing to satisfy their needs and wants.

Who are your customers?
Everyone who needs a roof over their head is my customer. Most times we first want to choose the class of people to work with either the rich or upper class in the society.
How would the world look like without marketing?
Marketing is done even in the homes where husband and wife sell ideas. In the olden days it is called trade by barter. So there will be no world without marketing. Marketing takes place at all level.