With so many changes in the real estate industry, it is imperative for professionals “to step out of the box” and adapt their business model in order to continue to be consistent in their earnings. There are two mindsets occurring in which some say that you have to go back to the basics and work smarter, applying the principles we learned in Real Estate 101. Others are saying to revise the consumer’s mindset and ways by changing the professional’s approach to the transaction’s structure.
It is a definite that the consumers’ way to search for product has drastically changed from a physical research to “virtual reality.” They are spending the initial research time on the worldwide web and not through paper advertising and physical meetings with prospective businesses and professionals.
My own experiences in real estate on the web started back in 1999. I took my rental business on line and started renting waterfront and luxury homes in South Florida to clients outside the area from all over the US and around the world. It was initially surprising how easily someone in the UK was comfortable wiring $25,000 for a 30 day Las Olas estate home to my escrow account in Fort Lauderdale. They rented sight unseen and were always pleasantly surprised how the homes showed better once they physically arrived for their stay. Reputation and ethical ways of doing business replaced large volumes of advertising dollars due to repeat clients that came back every year. Their referrals initiated more referrals leading to a ripple affect. This lead to renters purchasing so many luxury homes. I never had to struggle with the basic startup marketing plans of networking, knocking on doors, cold calls and expired listings.
The business came to me.
We see in our everyday lives how quickly the demand for a labor force is reduced and being replaced with computers, voicemails, virtual assistants, and more. We see real estate professionals turning to different ways of presenting themselves and the sale by new designations such as the ACRE, Accredited Consultant in Real Estate. But will the demand for the physical businessperson completely become instinct to make way for virtual experiences via the internet, such as real estate purchases? Have new titles and designations started to make the difference in your market?
Andrea Tsakanikas
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Part of this virtual reality phenomenon enhances my business as a home stager. As you noted, the first impression is now made on the internet, not at the curbside, for buyers. Fabulous photos are a necessity just to get a buyer to the physical door. When I set up a room, my first question is "What am I selling in this room?" Second is "Where will the photographer stand?" Then I work from there.
I don't think the physical business person will become extinct, but I do know that the role is evolving from what once was, because of the internet. We all need to change with the times.