The most important thing to realize is that the new ways of doing real estate come from a need for a shift in the industry. For the most part, the new way of going about real estate is going to be more beneficial for the customer – but only because it was built upon the old way of doing things. It should not be viewed as a battle of old school vs new school in real estate, but rather how the two can work together. Using the old fundamentals and mixing it with the new efficiency is the only way to view the world of real estate. Here a few ways we have viewed the evolution of the real estate industry:
1. Differences in the Way We Shop
Old: In the past, buyers would look in the real estate section of the newspaper in the specific areas to buy or sell any property. They would identify the homes of interest and then either go to the open house or call their agent to make an appointment. It was all about the buyer searching for the listings.
New: Today, about 90% of buyers look online first as well as receiving daily updates from agents. It is definitely a better option as it is a huge time saver. Excellent photography, video clips, and google maps make the search much easier for a buyer. The agents are now more involved in the initial connection. Often times, they will reach out to potential buyers/sellers.
2. Absence of Broker and Estate Agent
Past: Before there were hardly any broker or estate agents who existed. This is because selling and buying was considered a very simple process. There used to be a conversation between the seller and the buyer which finalized the deal. No need for a third-party agent to get involved.
Present: Nowadays, dealing in real estate has become so chaotic that the presence of a broker is now necessary. The estate agents do all of the work from finding the customer, arranging the deal, to getting all the paperwork together and finalized. The real estate world has gone from no need of a broker or estate agent to a mandatory estate agent.
3. Differences in Marketing Strategy
Past: Marketing a house meant making door to door visits, cold calls, sending post cards, and open houses every weekend. The old way involved a heavy amount of interruption. This tactic was pretty aggressive and not the best way to approach the customer.
Present: The new technique is more consumer-focused. The art of the new marketing technique is to find a balance between the old school fundamental and the new school efficiency. Using simple brochures can get you out there, but it is all about the delivery. Consumers will listen better and be more open if you are not knocking on their door every day. The way you reach the consumer is the most valuable asset. Things are not simply pushed in front of the consumer but are delivered in a way that gets the message across with a little less aggression.
4. Presenting Offers
Past: Offers were handwritten on a multitude of papers. It was a very formal process and it was meant to impress the buyers. There was no need to increase the sale or raise the profit.
Present: Offers are pretty straight-forward these days. They are designed to overall increase the sale and raise the profit. Examples of these are shows like “Million-Dollar Listing” and “Selling New York” show how competitive the real estate industry can be.
Overall, it seems as though the new way of doing real estate is much more effective and faster. The most important rule for real estate is to keep some sort of balance. There is a fundamental way of doing real estate with a few changes along the way. Keeping a balance between the old and the new will inevitably lead to great results.
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