Today, October 6th, the California Association of Realtors start their annual Expo in San Jose. I’ll be attending on Wednesday and Thursday and I will share my impressions with you. Last year the Expo was in Long Beach. These are some of my observations from last year.
The primary focus in 2008 was on the economy, online marketing, and the future of the CA real estate business. After two days, it was my impression that those who attended have already adapted some to this new environment. Many of them are driven by fear but a handful are driven by opportunity. I’m sure that you would agree that the biggest opportunities in business come from the most drastic changes. Our ability to adapt will make all the difference in our continued success.
Here are some of the statistics that impressed me in October 2008:
THE INTERNET IS NOW USED BY 84% OF REAL ESTATE CLIENTS
- The Internet is used 9X more often than newspapers
- The Internet is used 34X more often than real estate magazines
- Internet users are better informed, have higher incomes, and take 40% less time in transactions
The Internet is changing how the marketing and sales process occurs. There are two catalysts that I see: (1) demographics & psychographics are moving society from the need for experts (baby boomers) to an information gathering society and community oriented approach (Gen Y); (2) communication methods are evolving as we become more “connected”. These major shifts are changing the rules of the game and making strategies that we’re effective 10 years ago obsolete and making some of the best practices from 5 years ago a minimum standard.
[2008 Take away: If the Internet isn’t part of your marketing, sales, and operations then you’ll become less and less effective over time.]
GET READY FOR A STATEWIDE INSTEAD OF REGIONAL MLS
In 2008 they announced the statewide MLS (then called calMLS now
calREDD). The plan was to launch in the beginning of 2009 but it didn’t arrive until August 17. Unfortunately, the launch didn’t quite go as smooth as planned and the
Fresno AOR, one of the few included in the first phase, put their participation on hold as of Sept 1.
The goal is to have one system for the entire State of California and change the focus from a “current market” approach to a “property centric” approach. Going statewide allows for certain economies of scale but they’re also scaling up the data.
What does a property centric approach mean? I didn’t understand it until I had an extended conversation with a board member. Here is what changes with a property centric approach… the MLS database will include ALL properties no matter their availability status. Just like zillow.com, every property will be listed not just the ones currently for sale or lease. The implications are profound and the usefulness of the MLS increases significantly once this new model is adopted.
[2008 Take away: It will soon become easier to focus on lifestyle and geographic niches statewide. There will be more competition but knowing about all properties not just those for sale or lease will create a learning curve for the CA market. If you’re ahead of that curve you can capture market share.]
IT’S NOT ABOUT ME, IT’S ABOUT YOU
Collaboration and a personal connection are more important than ever. Consumers are demanding that the focus change from us as the “professional” to them and their needs. This means that removing pictures from business cards and focusing instead on specific target markets will set you apart in the next 5-10 years. This “all about them” approach will be a fundamental shift in how properties are marketed, how new clients are obtained, and who is talking about you and why.
[2008 Take away: Our approach needs to change to be reflective of our clients needs and wants, not ours.]
POSITION YOURSELF TO EXCLUDE CUSTOMERS
The way to be successful in the future is to ignore most people. Gone will be the day of the “I do everything for everybody” agent. Instead you should define your niche, what it includes, and what it excludes. As an example look at
goarmyhomes.com While they may be limited geographically their focus on a specific target market speaks to the unique needs of Army customers. They talk in their language and ignore everyone and everything else.
[2008 Take away: By excluding most of the market your can simplify your business and prospects will self-qualify themselves both in and out.]
SPECIALIZE IN YOUR STRENGTHENS AND SUPPLEMENT WITH OUTSIDE SERVICES
There is nothing new about using mailing houses for effectively sending out your direct mail campaigns. But the most innovative and exciting services I saw in 2008 were ones that require a little setup and once implemented are put onto auto-pilot. Two very cool ones featured professional content that you could integrate directly into your website or drip marketing program. These services provide brandable content with a “give to get” marketing strategy. Gone are the days where you need to prepare your own newsletter (use a short-run custom magazine instead). Or what about writing all that content for your blog or website? Hello AP quality news feeds that you’re legally allowed to use and reformat as original content!
[2008 Take away: Providing resources to your customers will no longer pull you away from what you do best.]
I’m excited to see what is new at the 2009 CA Realtors Expo.
