Marketing of Real Estate Products: The Need for Professional to Embrace Digital Marketing

ESV Kolawole Clement Abejide,

All over the world, technology is positively imparting real estate business landscape, and changing the narratives.

Baen and Guttery in their 1997 paper “The Coming Downsizing of Real Estate- Applications of Technology” hypothesised that the growth of the Internet would significantly impact on the market for real estate brokerage services as well as other property related services.  In relation to brokerage they predicted a reduction in the number of people involved in the industry and downward pressure on real estate commissions.  Also predicted were an increase in fixed marketing fees per transaction and an increase in the support services provided by real estate brokers. 

The rationale for these outcomes was in part because the brokerage industry exists because of inefficiencies of the traditional real estate market.  In the absence of cheap reliable market information real estate brokers act as information intermediaries as well as negotiators.  It was believed that the rapid growth of cheap and available information over the Internet would reduce the role of real estate brokers and other property professionals like Estate Surveyors and Valuers, as sources of information.  As the value of providing that information had become part of the transaction cost (around 6% of sale price in the United States at that time) reduction of information costs and alternative sources were predicted to drive sales commissions down to around 3% of sale price.

In conclusion, below are a number of efforts  real estate firms and companies should do in embracing technology in the driving of real estate businesses.

Incorporate the use of information technology in the marketing of their listings as it has a considerable effect on marketing of real estate products in Nigeria and the world in general.

Also, property owners should stop demanding unrealistic sales price and setting of unrealistic period of closing sale as it constitute a major problem/challenge to marketing of real estate in Nigeria and beyond.

Since effective marketing influence prompt real estate transaction state, real estate firms and companies should ensure they incorporate aggressive marketing in the marketing of their real estate. All social media channels should be well-utilized to achieve this.

Also, real estate firms and companies should have a business related website as it increases performance/productivity of marketing of real estate in Nigeria. A well-developed website is a good marketing content for real estate brands all over the world.

Real estate professionals should embrace the on-going wind of digital marketing and content creation in running their business operations. This will positively change the entire industry operations, entrench state-of-the-art business operations, and add to bottom line of the firm.

Technology has come to play a very catalytic role in business operations, including the real estate sector, and the earlier the professionals fully embrace it, the better for our common good.  To realise this goal, marketing communication professionals should form part of the team in real estate companies.

ESV Kolawole Clement Abejide, an Estate Surveyor and valuer cum serial entrepreneur writes from Abuja, Nigeria.