The real estate industry is an incredibly competitive one. However, that does not mean that there is no room for your business in it.
In fact, the real estate industry experienced notable growth during 2020, and while it is expected to slow down a bit this year.
The outlook is quite steady for the next several years at least.
While the pandemic certainly played a major role in the sudden boom in purchases, it is not the only factor that makes this industry lucrative at the moment.
More and more millennials are reaching the age where they purchase their first home, too, which means that the demand is high – and so are the prices.
Still, that does not mean that success will fall into your lap. In these volatile economic times, every business decision is crucial, and if you want your real estate business to prosper, you definitely need to do your homework. Here are a few smart tips that are going to help you out.
Study the Market
Before you invest in any property, thorough research is in order. You need to know your market in and out to make informed decisions. Not only should you be aware of the general market trends but you should keep track of any changes in your local market as well.
Some things to pay attention to are the average rent in the area, the average income as well as unemployment rates. In addition, make note of crime rates – failing to do so is a common mistake that can end up losing you a lot of money when your property stays vacant for months on end.
You May Read: How to Financially Prepare for Life Milestones
Know Your Niche
Focusing on one type of property is highly recommended, especially if you are still starting out. Knowing your market well will make picking your niche easier. Define who your ideal customer is and what they are looking for in properties.
Are you catering to first-time home-buyers or do you want to fix up vacation rentals? As soon as you have created your buyer persona, it will be clear what you should focus on. As an example, single-family homes are usually the most easily manageable, so they are a great place to start.
You May Read: How to Improve Your Real Estate Marketing Strategy
Mind the Location
The first thing you learned about real estate was probably that location is the most important aspect of property investment. Therefore, it is needless to say that having a keen eye for up-and-coming neighborhoods is an invaluable asset in this industry.
Emerging neighborhoods are not only profitable investment opportunities for you, but they are also desirable choices for buyers thanks to tax incentives. Focusing on these areas is thus a win-win.
Have a Notable Online Presence
A website is indispensable nowadays and this goes for your real estate business as well. It is often the first point of contact between a potential client and your business in today’s tech-driven world. So, make it easy for them to find your contact information and take direct action.
Be sure to leverage digital marketing strategies such as search engine optimization to give your website enough exposure. Besides building a solid website, make use of online directories such as Google My Business, sign up for relevant marketplaces such as Zillow or its counterpart in your country, and create social media profiles to further encourage your audience to reach out to you.
You May Read: Automate Your Business to Boost Its Growth and Efficiency
Market online and Offline
Marketing plays a massive role in business success so it’s worth maximizing your efforts across all channels. Using the online platforms, you are present on as marketing channels will cost you next to nothing but it is an effective way to reach clients.
Still, you should not forget about traditional means of marketing either in this increasingly digital world. Since more and more businesses are doing so, reaching out to qualified leads this way may set your business apart. For instance, sending out direct mailers is still a valid marketing method.
Don’t Skip Branding
Your online and offline marketing efforts will only yield favorable results if you have solid branding in place. A recognizable brand presence will not only make your business appear more professional but will also boost awareness of your business.
Branded freebies are still a great traditional marketing method that will ensure that your logo is immediately associated with your business upon sight.
Share Your Knowledge
Creating a reputation that speaks of expertise and credibility is a solid strategy to build strong foundations for your business in the long term. Showcasing your skill and knowledge as well as sharing it are thus marketing strategies that boost brand image and garner the favor of potential clients.
Publish informative articles on relevant topics on your website to boost traffic. Use infographics to grab attention and communicate statistics more easily. If you are up for it, you can even host seminars or webinars that provide valuable information for those who are interested in purchasing a property but don’t know where to start.
You May Read: How a Transaction Coordinator Can Help Your Real Estate Business?
Present Properties in the Best Light
Much of the first impression a property makes comes down to how it is presented. This goes both for online as well as for in-person presentations. People will be much more likely to contact you regarding a property if the photos provided are attractive. So, if you are not equipped to get such photographs yourself, hiring a professional photographer is the best way to go.
If you are able to take it a step further, you may even create virtual tours. Virtual tours have the potential to expand your client pool as those reluctant to travel will also be able to preview properties they are interested in. Finally, statistics show that homes that are staged sell faster than unstaged ones, so you may not want to skip this step.
Establish Connections
Another smart tip that you should start practicing as soon as possible is making connections. Having the right network of contacts will multiply the assets of your business. For instance, getting in contact with wholesalers and contractors and establishing business relationships with them may save you a lot of time and money in the future when you need their services.
You can also join groups and associations and attend events to talk to others in your industry and get a piece of their experience. However, making connections can also be as simple as getting out there and talking to the locals. It will both allow you to get to know the area and the area to get to know you. Be friendly with local businesses and always carry a handful of business cards.
Leverage Testimonials and Referrals
Few things can boost your business’s credibility as much as testimonials can, so be sure to encourage your satisfied customers to voice their experiences. An opinion read on the internet is almost as valuable for potential clients as one heard from an acquaintance.
Still, if you want to leverage the latter too, create a referral system. If your customers had a positive experience, they will be more than happy to recommend you to their friends and family, but you can also offer attractive referral gifts to show your appreciation.
Be Aware of Laws and Regulations
Whether you are at the start of your career in real estate and need some help sorting out the legal aspect of your business or you are having difficulties navigating complicated tax laws, you cannot afford to make a mistake as it can easily mean the end of your business.
Having a reliable lawyer, you can contact will ensure that all your operations follow the laws and regulations in place. Seek out experienced property solicitors who will assist in conveyancing and provide you with a safety net to fall back onto in case something unexpected happens.
Have an Emergency Fund
You cannot expect your business to perform the same every day of the year. Vacancies, for instance, are something that many novice property owners are not prepared for. You need to have a rainy day fund to cover these periods. In addition, you should also be prepared for emergencies.
Make full use of profitable periods and invest smartly but be sure to put some money aside, too. It’s a good idea to have a savings account where it can continue growing over time.
Stay in Contact with Your Leads
Finally, the last smart tip that you should always stick to is staying in contact with your leads. It is surprising how many real estate businesses miss out on potential leads because they fail to do this. If a client is showing interest, be sure to follow up with them.
Send them an email or give them a call. Check up on your clients after you showed them a property. Make note of leads who show interest in buying in the future and contact them at a later date. Nurturing your leads will not only land you more sales but will also boost how loyal and reliable your company seems.
Despite the competition, the real estate industry is a truly lucrative one for those who are ready to put in the work. While no one can predict the future, paying attention to the changes in the industry and adjusting your approach smartly can give you a great head start. Use the aforementioned tips to boost your chances of success!