Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business Marketing

The Future of the Real Estate Industry – Part Two


It’s obvious that the real estate industry is changing. And it’s changing more rapidly than ever before. But where is it going? And where does it need to go?

I touched upon things such as Barrier To Entry, Oversight and Enforcement in part one of this three part series. Here’s part two…

Technology

Emerging technologies, social media and social networking are just some of the things that have and are continuing to change the way consumers interact with agents and conduct their real estate business. Most “old timers” either don’t get it or don’t want to get it. They have plenty of referral business built up over the years and they’ll do just fine without doing anything differently. That’s ok! I applaud them and hope I can say the same for my referral business 20 years down the road.

But what about all the first and second time home buyers and tech-savvy consumers who want an agent who speaks the same language as them? Their reliance on the internet and technology for research and purchasing goods is unprecedented. Just look at CarMax, Zappos, eBay, Amazon, Overstock, CarFax and the thousands of on-line forums about various products and services.

Advertisement. Scroll to continue reading.

Though we’ve come a long way, we haven’t quite figured it out (yet). The technology companies who happen to focus on the real estate commodity don’t get real estate. And the organizations and associations within the real estate industry don’t get technology. There needs to be a healthy and good marriage of the two for it to work.

We need to educate and promote technology and current trends to agents and brokers. We need to stop calling everything new “mumbo jumbo” or a “fad”. Perhaps it is a temporary thing, but it works because it’s what consumers want and need right now. Will it change down the road? Absolutely. But more than likely, it will involve some sort of new technology so the RE industry better get used to staying on top of technology whether they like it or not.

We have to realize and come to terms with the technological and social needs and savvy of today’s (and tomorrow’s) consumers. We have to communicate with them on their level and give them what they want otherwise our value proposition and relationship with them will erode like an unkept beachfront.

Marketing

DISCLAIMER: Not all markets are the same so the “new” type of marketing and advertising that works in metro areas such as mine (DC/MD/VA) may not be as effective as traditional marketing in other, smaller towns/areas. The DC metro area is fairly tech-savvy and local statistics show that 49 percent of consumers found the house they ultimately bought online, 32 percent found it through their agent, 15 found it by seeing the yard sign, 3 percent found it through print media and 1 percent found it through an open house.

Marketing is becoming synomymous with technology because technology has dramatically changed the way marketing is done and its cost. The ROI on traditional marketing such as print advertising, post cards, billboards and grocery cart ads is dwindling while the ROI on “new” forms of advertising and marketing such as social networks, social media, property web sites, virtual tours, slideshows and blogging is increasing dramatically. As Inman News said, “The dependency on print ads is unquestionably over.”

Advertisement. Scroll to continue reading.

If you are to have an effective marketing campaign, you have to reach out to your target audience and then engage them. If over 85 percent of buyers and sellers are going online for information about real estate and 49 percent of buyers found the house they bought online, then you should be focusing your personal branding/marketing and listing marketing efforts online. That’s how you target them.

This is only the tip of the iceberg when it comes to the dependance of the internet by real estate consumers and if you’re late to the party, you may miss a large chunk of current and future business. One big part of that is Google. Google rewards those who have been focused on their online presence longer and “who have done no evil” and they’re not quick to elevate newcomers to the first page of results. There’s more to SEO than that, but that’s one important piece of the puzzle when it comes to getting in the game early and being ahead of the competition in the future.

How do you engage them? Be yourself and don’t try to sell them, definitely not on a social media, social networking or blogging platform. You can have your “salesy” static web site, but save that for other uses. Your marketing efforts should be focused on “engaging” consumers, not “selling” them. And if you really want to know the ins and outs of how to engage consumers, there are plenty of excellent people to learn from right here on AG as well as across the rest of the “RE.net”.

(Part three coming after Turkey Day)

Advertisement. Scroll to continue reading.
Written By

Danilo Bogdanovic is a Real Estate Consultant/REALTOR(R) in Northern Virginia and author/owner of LoudounScene.com and LoudounForeclosures.com. Danilo serves on various committees with the Dulles Area Association of REALTORS(R) and the Virginia Association of REALTORS(R).

14 Comments

14 Comments

  1. Chuck G

    November 24, 2008 at 8:19 am

    Danilo,

    Standing ovation here for your insight on technology. It’s clearly not a fad — it has changed the RE industry permanently, and for the better. Just as it did the way we buy books and get restaurant ratings.

    Most important, your points on blogging are spot-on: Educate, engage, but don’t hard-sell. Technology gives us the perfect pulpit to show what we know, NOT that we haven’t learned anything at all.

    great stuff…

  2. Jim Duncan

    November 24, 2008 at 8:31 am

    The one point I would raise is one of possible semantics. Internet advertising is “traditional marketing” – there are just different varieties/flavors of tradition, depending on the market.

  3. Ines Hegedus-Garcia

    November 24, 2008 at 9:05 am

    I’m with Jim – we keep calling other methods “traditional”, but how much longer will we do that just to discriminate both methods?

    I personally do a combination of print ads and most is Internet Marketing – I think the combination of the two will be the “norm” for those of us that are still alive in the industry.

  4. Danilo Bogdanovic

    November 24, 2008 at 9:31 am

    Jim, Ines – I agree that the term “traditional” now includes online/internet methods and most of those that read AG/blogs would probably agree. But there are many agents and brokers that would still disagree or not agree with the importance of online marketing.

    And thank you Chuck!

  5. George McCumiskey

    November 24, 2008 at 9:41 am

    You’re absolutely right about the need for AGENTS to conform to what the potential home buyers want and how they prefer to do business. It’s a real timesaver to wade through the preliminaries online and then connect irl.

  6. Ines Hegedus-Garcia

    November 24, 2008 at 9:42 am

    Danilo – you are definitely right, the way I look at it is this: the more agents that don’t see the importance of online marketing, the bigger the share for us (I know….a bit selfish….but it works in business) 😉

  7. Danilo Bogdanovic

    November 24, 2008 at 9:45 am

    Ines – Not selfish…just smart business.

    George – Great point about making things more efficient, but not replacing real life interaction.

  8. Anthony Longo

    November 24, 2008 at 10:22 am

    Awesome Post!!!

    The disclaimer under your marketing headline is unreal. We are excited to have launched the DC marketplace and really look to ‘turn it on’ tech-wise Dec 1. (Baltimore to launch this week). Looks like if these stats are accurate, with out biz model, this will be a hot market for us!

  9. bryanslist

    November 24, 2008 at 10:31 am

    Great information.

    Couldn’t agree with you more about the importance of engaging consumers.

    Reading through all of this information about SEO, online RE advertising, etc. this same message echos true in the majority, which is to provide a service to the greater majority/greater good and you thus reap your own ROI.

    Keep up the good work!

  10. Vicki Moore

    November 24, 2008 at 8:18 pm

    Every field – including law – has idiots. As a professional organization or as individuals pushing our organization – we have to do something to give the consumer reason to believe that we’re not all bumbling idiots.

    One bad apple and all that. When one agent screws up that story gets told a thousand times and now we all look like money-hungry jerks.

    You can’t educate someone into being ethical and moral. It’s inherent. We need that kind of test.

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Social Media

Social media censorship has been a hot topic across the board, but now the federal court upholds free speech rights in TX by law.

Tech News

Creeping, stalking, checking...whatever you call it, we all do it. Here's how to look at a LinkedIn profile privately.

Social Media

(SOCIAL MEDIA) Social media has evolved from being only community-oriented to career-oriented. See how users are getting jobs by being creative.

Business News

Maybe this won't come as a surprise, but the statistics sure are telling- having depression and social media usage are linked.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.