Agents Revamp Marketing Strategies

With the housing crisis looming overhead and technology ever busting at the seams, local real estate agents are on a mission to quash negative preconceptions and stay ahead of the real estate game, which translates into reevaluating their current business model.

For real estate agents, income is based on commission earned from buying and selling properties. Many brokerage firms target listing properties for home sellers because these listings attract buyers and increase the overall market share of the brokerage. The basic business model is listings-equals-leads, which means more profits. Traditionally, real estate agents controlled market information, hence controlling the entire home sales process. This, however, posed a problem when the housing market collapsed in 2006-2007.

Since real estate agents represented buyers and sellers in transactions, they were partly responsible for the market bubble and decline. Some agents had received kickbacks from loan officers, double ended commissions, withheld pertinent information, and promised permanent appreciation. Understandably, consumer trust and respect for real estate agents dissipated.

Long gone are the days when local real estate agents advertise their services by placing flyers on parked cars at local grocery stores, knocking door-to-door, calling strangers from a phone book, and sending mailers to random geographic farms. Today, real estate agents are discovering new ways to rebuild consumer confidence.

The surge of various communication technologies, such as Facebook, Twitter, and Google +, and other social media platforms has helped real estate agents build trust relationships. Not only can the real estate agent reveal him or herself as an holistic individual, but friends, family, and colleagues may also vouch for the integrity of the agent. Real estate agents can also highlight their expertise by building profiles on websites such as Trulia, Zillow, and ActiveRain, answering consumer questions, and receiving recommendations

Veronica Salaman, a Realtor from Keller Williams, commented on the use of social media, “It is important for your clients to feel that you are a real person.” She recommends sharing some personal interests on social media accounts and letting your personality shine through. Having first-hand experience in the short sale journey and working with distressed clients, she said that clients depend on the real estate professional to be their confidant.

With short sales accounting for 25% of home sales in California (RealtyTrac,) it is important that local agents are empathetic to the needs of their clients.  Consumers need someone to be their advocate, to guide them through the stressful process, protect them from the risks, and support them in times of need.

Despite the turbulent changes in the real estate market, the demand for honesty, loyalty, and commitment has not changed.