Real Estate Marketing and Technology
Real estate marketing in today’s world is rapidly changing. Agents are faced with a new type of media for advertising on an almost daily basis. While some forms of technology are introduced to the general public (i.e. iPhones, Blackberries, laptop computers, etc.), others are Realtor-specific technologies (such as email marketing, realty websites, etc.). Though many agents are adapting as quick as possible, others are still left in the dark. With the advent of Web 2.0 and the ever expanding options available online to both buyers and sellers, real estate agents of the 21st century must gear up for new changes if they expect to remain successful in today’s market.
In their article, “Uses of Websites for Effective Real Estate Marketing,” Bond, Seiler, Seiler, and Blake set out to uncover the trends in real estate marketing via the Web. In 2000, they conducted a survey of nearly 1,800 Ohio real estate firms to see who was keeping up with the newest technological trends. Unfortunately, the team only had a response rate of approximately 13.8%, leaving them with 249 useable surveys. Of those 249, only 41 respondents maintain their own websites. Alarmingly low, this means only 16.5% of brokerage firms operate a site. They are quick to point out, however, that an additional 80 firms (of the 208 remaining) choose not to operate an individual site, but rather participate in a larger, corporate-run website. This is most likely the case for franchise offices that are under the umbrella of nationwide real estate corporations (such as RE/MAX, Century 21, etc.).
Seventy of the 208 remaining firms plan to have an operational website sometime in the near future. 16.1% of firms surveyed say they see no benefit in operating a website, and 4.0% say they had a website but discontinued it because of lack of sufficient business. Of the 41 firms that maintain a website, 38 do so to reach potential customers through the Internet, 29 believe that it is “simply the way business is done today,” and 19 indicated that they had a website for competitive reasons (they believed they would lose business since others had websites) (Bond 205). Of those respondents with sites, the average time of operation at the time of this survey was approximately one and a half years. The average number of hits per day is 440, but the team contends this is misleading because the median is only five. According to them, one firm receives 5,393 hits per day, while half of all sites receive less than 5 hits per day.
Similarly, in Sofia Dermisi’s article, “Real Estate Information Technology,” a study of metro-Phoenix, AZ real estate agents were surveyed as to their opinions and practices regarding technology and the way it affects their success as an agent. This survey differs from the Cleveland study because this survey is conducted on an individual level, whereas the Cleveland study was conducted on the firm level. Dermisi and her associates invited approximately 17,000 via readily available electronic methods. A field study was also conducted to reach those agents who were either not available electronically or not responsive. To accomplish this, paper surveys were administered whenever events were held that required the attendance of 10-40 Realtors. This was commonly at home tours, continuing education classes, and Realtor education-type classes. Although the survey was administered to over 17,000 agents, only 625 responses were received (521 online surveys completed, 104 hard copy field surveys completed). Because four of them were either incomplete or duplicates, only 621 responses were useable.
Agents were asked to complete the survey bases on agreeing/disagreeing with certain statements. The study was a test to see if perception of technology affects the attitude toward implementing or learning new technologies. Agents were posed with statements and then asked to rank their thoughts on a 1-5 scale (1 being strongly disagree, 5 being strongly agree). The four statements were as follows:
1. Technology influences the way I do my job
2. I believe customers do research online before contacting me
3. Before a listing presentation, I should perform research online
4. I should regularly use technology to correspond with clients
Agents were also asked to rank their attitudes toward things like keeping electronic files rather than paper files, using laptop computers, maintaining personal websites, the essentialness of PDAs or smartphones, and other non-technology related questions. The average score for the above perception statements was greater than 4.0, indicating that “real estate agents view information technology positively” (Acharya 337). Among those statements, the question regarding research before conducting a listing presentation received the highest score (4.8/5.0). Consequently, among the questions regarding attitude, most agents felt “personal websites are an integral part of real estate marketing,” answering with a 4.084/5.000. Both of these cases, according to Dermisi, shows that Internet usage attained the highest scores, showing that “real estate agents consider web access as one of the most essential business tools available to the…real estate industry” (Acharya 337).
In concluding Acharya’s article, readers note that a personal touch is still believed to be an integral part of the real estate process (Acharya 341). Agents who can keep a close, personal connection with clients as well as embracing new technologies such as “podcasts, live open houses, webcasts, and electronic mail that enhance communication and improve an agent’s effectiveness will be essential for their continued success” (Acharya 341).
In their article, “Rhetoric in the Language of Real Estate Marketing,” Pryce and Oates discuss the rhetoric of the real estate transaction process. Whereas Realtors were once seen as money-hungry savages, they are now to be see as information disseminators, according to the pair. They conducted a study to try to find the universal language of real estate marketing. They looked at a sample of approximately 49,926 property transactions that took place between 1999 and 2006. Their tests were designed to isolate certain types of words in home descriptions, mostly in the area of emotionally-charged language. After isolating many emotive words, they found that hard-to-sell properties are often more likely to use pathos in their selling descriptions.
Finally, in their article “Will Real Estate Agents Survive,” Myers and Crowstan set out to answer the questions “Will real estate agents find that their jobs are slowly, but surely, taken over by systems and services provided on the internet? Or will they find that the power of IT enables them to do their job even more efficiently?” (Myers 3). Their theory involves three scenarios. Scenario 1: agents will lose their jobs to IT and there will be some consolidation within the industry; Scenario 2: agents will dominate the industry because of their institutional advantages; Scenario 3: agents will use IT to gain more business. They use three perspectives to gain insight into the future of the real estate industry: economic, institutional, and social and cultural perspectives. Myers at Crowstan assert that on an economic level, information technology will reduce the cost of locating properties, and will ultimately result in fewer agents being needed and a higher number of For Sale By Owner (FSBO) properties. They also assert a cyber-intermediary will be formed for transactions. On an institutional level, they believe new rules will be implemented for the use of Multiple Listing Service (MLS) systems and changes will be made as to the regulation of such sites. Furthermore, they argue that there could be additional rules made of FSBO websites. Lastly, in regard to the social and cultural perspective, they argue that more information will be available to everyone, but not everyone will know how to interpret it. In other words, consumers may be able to access property information freely, but will not know what they are seeing. Real estate agents, in turn, can decrypt the information and provide key insight into local neighborhoods, amenities, etc. They conclude that “many real estate agents will find it hard to survive and may well be subject to (losing their jobs). Most likely there will be some consolidation in the industry” (Myers 11). Additionally, they find that some agents in certain regions may have an institutional advantage, although this could easily be taken away by a competitive company. As a final point, they find that “a few” agents and firms will be successful in implementing technology to their own advantage.
In conclusion, it is hard to know what the future holds for Realtors in the United States and abroad. Though some studies have predicted the end of the real estate agent in the near future, many agents are currently gearing up for the twenty-first century, and are constantly staying adept with new technologies. With hard work and constant motivation to improve, agents may find they can prolong their doom. In the meantime, it appears the most appropriate and effective way for real estate agents, brokerage firms, and consumers to interact is through a combination of personalized service and high-tech solutions.
Works Cited
Acharya, Ram N., Albert Kagan, and Travis Zimmerman. "Real Estate Information Technology: Influence of Email Marketing on Real Estate Agent Performance." Journal of Real Estate Literature 18.2 (2010): 329-343. Business Source Complete. EBSCO. Web. 28 Apr. 2011.
Bond, Michael T., and Michael J. Seiler. "Uses of Websites for Effective Real Estate Marketing." Journal of Real Estate Portfolio Management 6.2 (2000): 203. Business Source Complete. EBSCO. Web. 28 Apr. 2011.
Myers, Michael D., and Kevin Crowston. "Will real estate agents survive?." University of Auckland Business Review 6.1 (2004): 0. Business Source Complete. EBSCO. Web. 28 Apr. 2011.
Pryce, Gwilym, and Sarah Oates. "Rhetoric in the Language of Real Estate Marketing." Housing Studies 23.2 (2008): 319-348. Business Source Complete. EBSCO. Web. 28 Apr. 2011.