Like in every industry in the world, marketing is crucial for real estate companies. Without it, they would be unknown in the market and simply bankrupt. The trend for increasing digital marketing in this industry is connected with people looking for information primarily online. Instead of searching through a newspaper column, they will surf the Net to find a proper real estate expert.
Quick Links
Why Does Real Estate Need Digital Marketing?
People live in a hurry all the time. There is no time for searching too much for a service. Many operate to find the first company, check if everything is alright with it and pay for services. Logically, every business wants to be the first to come into customers’ minds when they need something from the offer.
More and more people also admit that they focus mainly on photos and visualisations. 3D software makes it possible to create a building and its surroundings even when it does not exist yet, and show it to potential customers. Developers can visualise the apartments they are going to build to find future residents.
Additionally, we can more often hear that if you don’t exist online, it is like you don’t exist at all. It may not be accurate, but we must admit that the first place where we search for something is the Internet for most of us. We can’t deny it.
How Real Estate Companies Valuate Properties and What Has It In Common With Marketing?
“There are three main property valuation methods – comparative, cost and income approach, but the first one is the most common in the developed real estate markets,” said Marina Safronova, certified real estate appraiser and Tranio consultant.
Let us follow this track.
Comparative method
Thanks to expert Brian Davis, Founder of Spark Rental, we know that it involves looking at nearby comparable properties (comps) that have recently sold to estimate a similar property’s value. Sounds easy?
Realtors know that it isn’t in practice, but let us switch it into marketing. What can the real estate industry compare itself to? They are working mainly regionally. They know their market well, and their service is full of professionalism.
Entering the Internet, we can see some regularities, and one of those is that real estate agencies and lawyers use similar digital marketing methods. Their websites are clean, colour-oriented, professionally tailored and sometimes feature an expert on the main page wearing formal attire and beaming with their knowledge.
Income method
This one shows how much money this property can provide its buyer. It is more often used while evaluating properties than apartments and houses, but if an income can be counted from rent, it can be applied to residential properties.
In marketing, we have a similar rule. Companies need to consider how much money put into the campaign will return to them from customers. Real estate agents can use this approach to be successful while creating advertisements for their business.
Cost method
This means that the property cost is count looking at how much will it take to rebuild the property after annihilating it. Based on this approach, desperate companies can think that they will bankrupt unless they will implement a good marketing strategy.
Unique approach
We asked regional real estate agent how they valuate their properties, and that is their response:
“At Felix Homes, we’ve developed a property valuation spreadsheet that we use to value homes. The model uses three different methods for valuing a property. The first method, which we call the historical method, simply looks at the average price per square foot of the comparable properties. The next method is known as the time-adjusted method, which considers the number of months that have passed since a similar property was sold. I believe this method is the most accurate, especially in markets that are quickly appreciating, like Nashville. The last method is what we call the adjusted method, which takes into account differences in square footage, the number of bedrooms and bathroom, as well as time. Once we receive a min, max, and average price per square foot for the comparable properties, we multiply that figure by the total square footage of the subject property.” Tyler Forte, CEO of Felix Homes
Real estate agency can switch the historical approach to looking at how others managed to market themselves in the past and the outcome. Time-adjusted will consider how many months passed, so if there are new solutions now that weren’t accessible, then. The adjusted method will find differences between our business and the companies we compare ourselves to.
As we can see real estate industry has strong foundations to be excellent in marketing. Technology will only help them.
How Real Estate Businesses Market Themselves Nowadays?
Action cooperation
They need to cooperate with other companies connected with the industry, such as homebuilders and developers.
“Homebuilders are usually the people with maximum leads about potential customers, so it is a good idea to do a type of partnership where they refer you, and you refer them to customers. This is one of the ways of advertising that can be very beneficial in this case.” Igor Avidon, Avidon Marketing Group
One of the best golden pieces of advice I have ever received is “Never try to do everything alone”. It can be applied in personal life, but as shown above, also in business when collaboration can bring you value. Companies that choose to be alone in the market from fear to cooperate with the potential competition will struggle more than those who choose to help others and ask for help if they need it.
Cooperation can include guest posting on each other’s websites, link exchange, and if the collaborator is not the competitor, even an advertisement to a website.
Show Them Service
People like to know what they will pay for to prevent buying a pig in the poke. One of the experts we’ve asked about how to market real estate businesses answered that “making examples of our work readily available, for example, by emailing potential clients with example reports, and by having reports and case studies available on our website worked well. Time and time again, clients have told us that they chose us on the strength of our example reports.” Kim Allcott, Allcott Associates
Why Do They Need the Service?
An essential thing in marketing is to ensure potential clients that they need your service and it is irreplaceable. If they can do things the same way with the same quality and quantity of workload alone, they will not pay for what you have to offer.
This is an example from Chartered Surveyors London website. They have many expert articles about their services, what they provide, and why people need them during the property buying process.
Show Off
Letting people know that their companies are on top in niche, region and expertise, and no one will do what they do better is the approach realtors should aim for.
It is an excellent idea to have good relationships with local media such as online newspapers, websites and related businesses.
Write expert articles, speak up and show your knowledge. People sooner or later will know that you are the best in your field, and if they are in need, they should get in touch with you.
Future Of Real Estate Advertisement
Holograms, VR full dive, and so on are still a dream for many people. Technology is better and better every year, month and day.
Imagine watching a property to buy in virtual reality without a need to move from your couch. That one is possible right now, but you can’t touch or smell. Tech solutions we have now let us see and hear. The full dive I mentioned will make it possible to use all senses to perceive the virtual reality’s surroundings.
Holograms aren’t that far from us as well. If they are familiar, real estate agencies can create 3D models of properties and show them to customers.
Conclusion
Real estate agencies have almost countless opportunities to advertise their services digitally. It all depends on how open-minded they are and how willing they are to risk. There is an impact of a budget, but creative minds can make something almost out of nothing.
Realtors are, in theory, perfectly prepared for scaling, which marketing campaign will be beneficial to them. Technology is only helping them achieve their goals, and with the improving and inventing of new solutions, this market will only grow because people will always need places to live, and the way you live will always point out your status and wealth.