The RE Biz & "Inferior Goods"

McDonald's, iTunes --
and Real Estate Signs

In economics, the term "inferior goods" means anything that you consume more of as you have less money.

Historically, foods like hamburger (vs. steak), potato's, rice and the like qualified; today, that would be fast-food chains like McDonald's, and all the Dollar store chains that appear to be doing brisk business.

"Inferior goods" applies to other things, too.

So, demand for entertainment is also surprisingly recession-resistant.

That's because people tend go to the movies more, not less, even as they cut back on luxury goods and services.

Or perhaps makes that "download more, not fewer, iTunes."

Real Estate Equivalent

In the real estate business, the equivalent would be good, 'ol-fashioned real estate signage.

Even as Realtors pare back expensive media advertising (how do you think Google makes its billions?), they are stepping up -- or at least maintaining -- their purchases of "For Sale" signs, sign riders, banners and other hallmarks of boots-on-the-ground marketing.

At least, that's the take I got this am from the sign company I've done business with for years.

Real Estate Signage: Less is More

Resisting the Urge to "Over Stuff"

I think an effective real estate sign is like a headline: it should be bold, focused -- and communicate one thing, well.

Instead, what I'm increasingly seeing are real estate signs that pack in ever more info.

Like the agent's Web site, email address, cell phone, broker info -- and on and on.

The result is inevitably a too-busy sign, with lots of small type . . . that no one reads!

Not exactly a good omen for that Realtor's marketing prowess.

"Not in My Front Yard" ("NIMFY")

Real Estate Signs -- the "Analog" Kind (vs. Symbolic)

Sign, Sign everywhere a sign
Blocking out the scenery breaking my mind
Do this, don't do that can't you read the sign

--Lyrics, "Signs"

Nobody likes real estate signs -- until they want to sell their home!

Then, if not your best friend, they're at least a necessary evil.

So, too, "arrow signs" (see above) can be quite helpful drawing attention to a home that's tucked away in a neighborhood that's hard to find.

The typical strategy is to locate one on the busiest nearby street, to pique the interest of passersby.

Sign Ordinances -- and Etiquette

Whenever I do that, I'm always careful to get permission from the closest neighbor.

Then, I check the local ordinances, to comply with any requirements regarding size, setbacks, etc.

Even after having done those things, my experience is that someone (a neighborhood vigilante? a city worker who doesn't know the rules?) doesn't like the sign -- and it disappears.

In almost nine years in the business, I have lost arrow signs (at $40 a pop) in Minnetonka, St. Louis Park, Plymouth, Bloomington, Edina, Minneapolis -- and, as of this morning -- Golden Valley.

P.S.: when I first started in real estate, I remember seeing a toppled "For Sale" sign, and automatically assuming it had been vandalized. Then I saw another, and another, and another.

The explanation? Every Spring when the ground thaws, signs that were put in before the ground froze topple (probably a good "sign" that a price reduction is overdue!).