Real estate developers are the last to adopt technology. Most of them rely on obsolete marketing materials such as magazines, brochures, and TV commercials. The real estate transactions are usually handled by Real Estate Agents, Brokers or Leasing Agents.
Most of the senior cadre believes that there is no other way to do it. I remember attending Expo Real in Munich, Germany. Everyone was there- Commercial real estate companies, investment firms, asset management, investment banks… It was a great event because we all got to meet and discuss the future of our industry. However, every time we stopped by a booth, we were offered business cards, pens, goodies, food, and, of course, brochures. Often time, we had to turn these beautiful brochures down because they were too heavy. This is not a hyperbole, but we could have collected over 50 pounds of brochures in one single day if we wanted to.
Some brochures were too big and had some beautiful pictures and renders in them. In all fairness, they were worth taking, but why would I want to carry 50 pounds of paper? The organizers of Expo Real had a mobile application which was a smart move in my opinion. I wonder if the exhibitors thought this through. Sadly, they forgot that the most important concept of advertising is new. It creates interest in the product. This is why real estate is badly in need of innovation. After visiting many industry events, we are realized that it will surely be an uphill battle, but we are ready for it. We are here to act like missionaries and convert the builders of our communities that technology is the way to go. It will take one real estate developer at a time but are ready to do it.
360 tours and VR are the future of real estate marketing, especially if they are on a mobile platform. The statistics are here to back it. According to Hootsuite, over 67% of people access the internet primarily through their smart phones. Having a website that is not mobile friendly will not only turn away a big chunk of the population, but it will also be punished by Google in terms of ranking. The time has come for real estate developers to embrace technology. They are no longer selling condos or townhomes to Baby Boomers or Generation X. Their clientele has changed and they are now selling and renting to Millennials, who are well versed in technology. They know how to look for a bargain and they rely on online reviews before spending a dime.
One of the first developers to understand our approach is Kadida Development Group (KDG), a developer of luxury condominiums and townhomes in DC. Tom Kadida, the CEO of KDG said “It was the obvious choice because we deal mostly with city dwellers, highly educated, and with lot of disposable income. Most of the time, it is their first property. By the time they come to us, they already know the neighborhood because they have been on Zillow and have done a ton of research. Also, they do ask a lot of questions, so we have to be ready to handle all of their concerns. Most of all, they care as much about the buying experience as they care about the property itself”. Real Estate developers should prepare themselves for the next generation of clients. Otherwise, they might, unfortunately, experience some adverse effects.