Online Wholesale Marketing: Real Estate Wholesale Marketing

For many, ‘the real estate market’ is a synonym for ‘hard sell’. After years of struggling to make a sale, many realtors are taking the digital route, using digital marketing and online selling platforms to their advantage.

But what is ‘the real estate market’? And does the method of selling homes remotely match the success of large real estate agencies such as Real Estate Corporation (NYSE: REO) and Red Ventures (OTC: RDVO)?

Traditional vs. Online

In 2018, 44% of American Express Survey respondents said they planned to use online marketplace platforms or websites to sell their homes, while 38% said they’d use mobile apps and texting, and 22% said they’d use social media platforms like Facebook and Instagram.

In comparison, just 4% of respondents said they’d use a real estate agent to sell their homes. The remaining 96% said they didn’t know or weren’t sure what channel they’d use.

The Rise Of Digital Real Estate

If recent trends are any indication, the future of real estate is rapidly evolving. According to Clutch, a marketing agency that specializes in digital marketing and real estate, 66% of respondents said they used digital methods to find a home, and 56% said they used online marketplaces or websites to research properties and make a purchase. In comparison, just 4% said they used a real estate agent to help find a home.

More people are also seeing the value in using online marketplaces to purchase real estate. According to the American Express Survey, 34% of respondents said they’d used online marketplaces or websites to research and make a purchase, while 25% said they’d used apps or messaging platforms like WhatsApp to get the same results. In comparison, 16% said they’d used a real estate agent to help them find a home.

Why Online Marketplaces?

In today’s digital world, the lines between marketing and sales have blurred. According to HubSpot Blogs’ analysis of the American Express Survey, respondents listed marketing (20%) and advertising (15%) as their top priority when it came to improving their real estate business, while sales (13%) and hiring (12%) were lower on the list. What’s more, 12% of respondents said they didn’t know what their top priority should be.

So as a real estate agency, how can you take advantage of this trend and attract more clients? One option is to integrate your marketing and sales efforts, using online marketplaces to improve your ability to track conversions and identify opportunities for cross-selling and upselling. Below, we’ll explore how.

Attracting Clients Via Digital Marketing

In 2019, the lines between marketing and sales will continue to blur. According to HubSpot, traditional sales activities, such as cold calling and face-to-face interactions, have declined while digital marketing efforts, such as email marketing and online ads, have increased. This trend will continue and even accelerate in the future.

However, despite the growing importance of digital marketing in real estate, many agencies still see the value in having a real estate agent onboard during the marketing and sales phases. What’s more, 20% of respondents in the American Express Survey said they didn’t know what kind of role their agents should play in the process.

Marketing Is The Key To Success

Just as importantly, having a skilled and experienced agent onboard during the marketing and sales phases can make a significant difference. According to the American Express Survey, 41% of respondents said having a real estate agent onboard during the marketing and sales phases improved their chances of success, while 14% said it hindered them. In comparison, 21% said it was neither beneficial nor detrimental, and 28% were unsure. This suggests that having a real estate agent onboard can help you identify opportunities to cross-sell and up-sell, as well as provide a human touchpoint during a digital marketing campaign. Even if you take the digital route to market your real estate agency, having an agent onboard will still give you a greater chance of success.

Cross-Selling And Upselling

Cross-selling and upselling are high-revenue generating activities for a real estate agency. In 2019, respondents in the American Express Survey said they expected their marketing efforts to generate 11% of their overall revenue (12% in the case of a virtual assistant) and 16% in the case of a real estate agent.

These figures significantly outpace the 2-4% of respondents who said they expected their sales efforts to contribute to their overall revenue. What’s more, 14% of respondents in the American Express Survey said they didn’t know what their top priority should be in terms of generating revenue.

The Role Of The Virtual Assistant

Even if you take the digital route to market your real estate agency, there are still tasks that need to be completed before customers can purchase a home. One of these tasks is gathering financial information, which is why many real estate agencies still use a traditional approach, involving a loan officer and an underwriter, to underwrite and approve a mortgage.

In the future, the lines between marketing and sales will continue to blur. In the case of a virtual assistant, respondents said they’ll rely on the assistant to perform tasks such as researching properties (52%), getting them ready to buy (45%), and following up with tenants or buyers (38%) – all digital sales tasks that involve little to no face-to-face interaction. The big question is: how will you ensure your business doesn’t stagnate as more and more tasks are delegated to virtual assistants?