In life we are forever growing & changing everyday ….all so slightly in the evolution of everything. It is happening in all aspects of life & business but none more obvious than the one major change in our lifetimes……the internet.
Nobody owns it, it does not have a brand, everyone uses it, the 8th wonder of the world….man made.
:: DIG IT
Digital disruption has been a game changer….an evolution or revolution.
In the business & commerce it has been massive.
Only as little as 8 years ago the local real estate agent was still old school, behind the curve of the digital world. The West Australian & Sunday Times had over 80 – 100 pages each in classifieds & advertising pages directing the buyers to suburbs all over WA to their future homes or property opportunities. An easy listing style of suburbs by alphabetical order with a price, 5 lines of info & Home Open headline for buyers to come have a look or ask the agent to see by appointment. A huge team of telephone classified advertising specialist would walk you through each line, suggest some ad tips & lock in the series of ads or changes each week. If display advertising was required a rep would come & see you in the office to discuss the best layout & design. Editorial & publicity would be requested as apart of the campaign with the editor & some copy would be arranged to be published & support the ad campaign. It was a system that worked for most of the last century.
Over 100 million dollars a week was spent on real estate advertising in WA with the 2 main papers, local news, realtor news, lifestyle mags, radio, tv in 90’s – 2010
In fact a large portion of WA old school realtors believed no one would buy a home online.
[This would be definitely denied now if questioned]
Today the West & Sunday Times are 20 page lift outs, along with local papers reduced to small spreads & features with no real dominance of any press in the property game. Radio is nearly no existent & only the big companies are doing cheap TV. A majority of agents today have not posted an ad in the papers for years as the readerships have fallen to the lowest number on record. Also in direct pro-rata to the ad support the amount of content has disappeared with the papers unable to sustain the writers or space required for stories. Especially any authentic updates with editorial integrity that are not just advertorials.
Ironically the average promotional budget for the sale of a home was around $500 – $750.
Basically $50 week classie (4 x $200), $100 sign, brochure & $50 5 photos would pretty much would do it.
Alot of the agents would book up the ads & take that out of the fee when sold.
If not sold cop the loss & move on to the next deal. It created a put your money where your mouth is for the agent promising the sale was not a problem at the appraised price. For the more savvy agent a split in the fee/costs with the seller could be arranged.
Prestige properties would be $1000 – $1500 with display ads or long classified with Attention Grabbers – Stock Logos to stand out, spot colour on the ad, plus glossy brochures.
Are we all helping dig a big hole in the universe of everything in local business with this new world…?
Use this ocean of information wisely & make sure you get the real facts, it must authenticated, double check its source “keep it local”.
Remember the old saying “don’t believe anything you hear & half of what you see” …until you know the real facts.
:: BRANDED AGENTS
Along comes the commercialization of real estate & the internet, with offers of a new cheaper more dynamic way of presenting property to te market place. Company branding, branding of individual agents & the marketing sweet spot of VPA. VPA is “Vendor Paid Advertising” which is an Set Up Sell or Up Front Fee of the advertising & marketing costs for the property to the seller/owner/vendor.
Internet Package Deals [Basically selling ad space for the internet co’s]
concepts like the Olympics of advertising ~ Bronze $1000, Silver $2000, Gold $3000
Which is happening today since 2007 where seller pays to promoted the home & real estate agent.
Now I am not saying this wrong in anyway but just an explanation of the process for commercial large branded agencies.
:: UNQUALIFIED AGENTS
As a fully qualified Advertising & Marketing agent before joining the industry in 2006 it never ceases to amaze me the packages & promotional costs paid by the client without any guarantee or accountability. Also booked & processed by individuals working for companies with no formal training or qualifications in the art of advertising, marketing, promotions, publicity, publishing, copywriting, story boards…..etc
The only experience gained is through trial & error of each client.
:: ALTERED STATES
The internet started as a cheap alternative to swing agents over & switch from the press, but now to compete in the digital disruption the average cost to sell a home is now doubled in 5 years to around $1500.
The internet has allowed agents to become DIY marketeers…..which is very interesting.
There are nearly 50% more properties on the market today than before the internet in 2007.
The internet has seemed to make things easier, more accessible to list, simple to create ads & coming soon. So the internet portals are having a boom business in bad times & crowded market place. The ability to sell to a wider audience on a global scale is brilliant, but it is more crowded than ever before, harder to find property, more expensive to sell a home than ever, harder to get more money for the sale because of statistical comparisons on display to buyers provided by the portals, an information overload that is saturating the digital publishing sites. Plus sellers & buyers have access to nearly the same info as the agent would have with service providers selling info & content.
Because its not as easy as running your fingers over the page to see associated suburbs in a 2 page spread we must scroll through pages & pages of ads to find a suitable property. Some suburbs are not viewed for certain types of property & minimal exposure is gained on the web with any portal or site. Multi-media & social media are so necessary but full of so much competition it is so important to be everywhere & stand out.
The property market has been turned around & heading down a road of the need for authentic & trustworthy content. Information that is is all salesy & written by agents, unedited & with no real facts or deeper content that is of no educational benefit of the reader will soon be looked over. The portals have their challenges of staying relevant & effective but are very full of properties for sale but no associated independant content. We are in the age of made up media, anything goes, no journalist content, no fact checking, blogs, features, self publishing, social media & DIY.
The old school papers & media offered content, stories, advice, simplicity, quality of editorial along with an economy of info. What was written was valued to the reader so to benefit a cover price, an outcome of intelligence. The internet does not provide this, it is systematically being fed directly by agents the same thing over & over again. Providing an amateur & robotic feed into the platforms for basic content to buyers trying to make a competent decision…
The sellers think the marketing campaign is a guarantee for the home to be sold & achieve the listed asking price. Which in reality is rarely achieved especially a flat market. In fact there is a large percentage difference between the initial asking price or listing point to the eventual sales outcome. If it is not sold which over the last couple of years has been a growing phenomenon & sellers re-sell again & again each time costing thousands.
The commercial conundrum is that the real estate industry is feeding a digital monster using residents money supporting a huge media empire ~ rea.com.au is owned by the Sunday Times & the Times is owned by TVW 7. All parties along the line are profiting in profile & income building brands for their business or individuals profiles. But that is the business model for now & we must use it well.
Realestate.com.au the main portal posted more than 50 million in revenue each year in WA for the last few years absolutely dominating the industry with harnessing most of the digital publishing. It is a worldwide phenomenon & the key to most buyers in the market place.
The promotional companies have boomed with the introduction of point of sale super sign the billboard from a standard sign, professional photography, videography, drones, graphics, copywriting, floor plans, 3D & more.
:: has become reiwa.com & promotes for the industry – it is the only source publisher with real industry content
:: has sponsored stadiums & major sports – with app’s, valuation systems for customers that need checking.
:: owned by European company with no customer quality assurance
:: the new growing online phenomenon of DIY sales & rentals
:: lead generation 3rd party portals grabbing sellers & hand balling to agents for a $1500 – $5000 fee
[these are just some sample of portals & sites]
So what is the answer…..where is this story going……
What is the missing link…..?
All buyers, sellers, investors, developers need an “Advisor Agent” – Buy or Sell you need to consult a Pro.
Not a “Salesperson” promoting advertising first, property second & providing a templated report or packaged publishing same as previous properties.
Every one needs …..
:: Professional Advice
:: Advertising Investment Intelligence
:: Multi-Media Marketing Methods
:: Creative Selling & Campaign
:: Buyers Agent & Advocate
:: Mentoring & Coaching
:: Selling & Buying System
:: Master Negotiations
:: Transaction services
“The Property Broker” :: Dean Mitchell introduces
One Stop Shop in Property Services.
“Guaranteed Pro Sales, Marketing & Management Methods”
“Take advantage of the digital world & not let it take advantage of YOU.”