Real Estate Prospecting Through Technology

 

It is no secret that technology has changed the look and feel of business in many industries, real estate included. In the 1970s and ‘80s, agents would rely on physical picture listings to provide information on available properties and were the go-to industry professionals when potential home-buyers wanted to find out what was on the market. The agent was the sole source of listing information, and they knew that anyone contacting them was a serious candidate for making a purchase.

However, technology and the internet brought about a massive shift. Clients can access online information at the tap of a button and often engage in the process with a clear vision of what they want. Digital marketing techniques have taken a front seat, with real estate professionals and companies required to be familiar with various strategies for success.

As individuals such as Razi Salih – who owns a real estate company to manage his properties – know, the use of digital technology is a must for anyone looking to succeed in every aspect of the industry, starting with prospecting.

Maintaining Contact with Previous Buyers

Selling to previous customers is relatively easier than acquiring new ones, which is why the use of customer relationship management (CRM) software in real estate is recommended. Certainly, not all previous clients will be interested in purchasing again, but staying in contact can open up referrals. Living trends among millennials and younger buyers point to frequent home changes within relatively short periods, so there could be opportunities to show new listings to established contacts.

Targeted Advertising on Social Media

Social media is one of the avenues used by many real estate companies to establish and maintain an online presence. From purchasing ads to sharing photos of listings, there is hardly a property professional who hasn’t tried their hand at social media. However, for those opting to grow their audiences organically on platforms such as Facebook, the initial results can be disappointing. Spending money on paid ads is expected, as it allows the professional to come up with targeted marketing campaigns that reach an intended audience.

On platforms such as Instagram, which is ranks highly among millennials, real estate professionals should focus on sharing images of homes they have already sold or are yet to find buyers. While many potential viewers might not necessarily take it a step further, they use Instagram daily, so regular posting is an excellent way to stay visible and relevant.

Real Estate Strategies for Success

The real estate industry, like many others, is a dynamic one that changes periodically. For investors and agents, keeping up with these changes and even going the extra mile is essential to remain successful. Real estate professionals have to embrace the tools and methods available to them to reach prospects, attract clients and keep business flowing.

Knowing when to rely on conventional wisdom and when to implement new ideas is a delicate balance for real estate professionals. As Razi Salih – an investor with property interests in northern Europe – knows, the emergence of digital solutions has made it vital to implement the right strategies at the right time.

Blogs and Websites

The reliance of consumers on the internet when searching for products and services extends into real estate too. A property business looking to tap into this audience will do well to have a website with meaningful information about what it can offer. Regular updates to the site will ensure visitors know what to expect. Also, having a regularly updated blog to explain various property topics or guide people on how to approach real estate can have a positive effect.

Experiential Marketing

Experiential marketing in real estate can take many forms, including on-site tours or events aimed at engaging prospects and learning more about their needs. Regardless of the form taken, experiential marketing aims to provide a platform for potential clients to interact with the business and make timely discoveries for themselves.

Build A Social Media Presence

Building a following on social media takes work, which is why real estate businesses have to be intentional with social media management. First, they should choose a platform they understand well that connects with their target audience. Second, businesses can't appeal to all demographics at the same time. As such, they should build a client profile and work towards consistent engagement with customers who fit this profile.

Hire Professional Photographers

Few things appeal to prospective clients as much as well-taken photographs of properties. However, many investors and agents fail to understand the importance of excellent photography when marketing a property. In the property business, people do judge by looks, so it's important to focus on quality. Therefore, hiring a professional real estate photographer is an investment worth considering.

Treat It Like A Business

A portion of real estate agents and investors consider the business a side job or carry it out as an independent contractor. However, for long-term growth, thinking about the investment as a business can help individuals invest in the relationships – and create the goals required – for sustainable success.

Effective Property Valuation Methods

Knowing the value of a property is vital for any investor, especially one keen on forecasting profits from their real estate investment. When investors how much a property is worth and what it will cost to maintain it, they can work out how much to expect if they invest in it. As those in the industry – such as Razi Salih, an experienced real estate investor with properties in northern Europe – will know, determining the value of a property can be approached from multiple angles. 

Part of the reason why various assessment methods exist is that the value of property shifts depending on various factors. As a result, an investor needs to understand the options available and choose accordingly. 

The Sales Comparison Method 

The sales comparison approach is one of the more common methods used by property investors. Individuals who use this approach compare the sales prices of similar properties to figure out a suitable price for the asset at hand. Generally, this approach seems simple, but investors have to consider multiple factors beyond similarity. For example, they also have to consider the property’s location, age, and features. 

While this approach can be a quick way of assessing value, it's also one of the pitfalls investors are encouraged to avoid. Sales prices and property values are not the same thing, and as a result further research will be required. 

The Cost Approach 

The cost approach considers the property's value as the total cost of constructing the property afresh, while also considering the cost of the land. Depreciation is considered in estimating the costs, while additional aspects involve estimating construction costs using modern building materials and processes. The cost approach is suitable when assessing properties that are used for special purposes, including hospitals, schools or government buildings, for which a direct comparison is hard to find.  

The value of the land assumes it is vacant, with the approximate value found by studying sales of land that are similar in size and location. The cost of constructing the building(s) can be estimated by summing up the costs of each component used, or by using the cost per square foot. Depreciation of the property is factored into the valuation and considers the lifespan of the property. 

The Income Approach 

The income approach considers the reasonable rate of return an investor is looking for and the net income that a property will give. Often, this method is used when assessing properties used for income-generating purposes such as shopping malls, office buildings and residential apartments. Assessments done using this approach can be relatively easy when the property in question has predictable expenses and is expected to produce future income.