CorporateDigital Marketing

Digital natives in the real estate business

The new generations of entrepreneurs have entered the business world through startups , technology-based startups . 

Some go further and create  digital native brands (Digitally Native Vertical Brands), started from the online world, specializing in a vertical business, focusing on a specific group of products or services and the consumer experience.

OPPORTUNITIES IN THE REAL ESTATE SECTOR

The digital natives , they think their peers to offer solutions to the major problems that have to access home ownership.

The home buying and selling process remains complex, with a bureaucracy (financing, paperwork, documents, taxation) that hinders its development.

The millennial generation tries to emancipate themselves and buy their own home, without diminishing their quality of life. 50% is a live for rent, contributing almost half of their income in it.

The  Uberización of services is not alien to a sector, real estate, in which buyers and owners seek specific solutions, with specific tools and services.

REMUNERATION FOR FEES, COMMISSIONS OR ONE-TIME FEE

The traditional real estate company charges fees for success, which is the amount charged by a professional or company for the work done and the objective achieved for their client; that amount is calculated on a percentage of the price of the sale and purchase operation in which it provides its services; generally, it is passed on to the owner who sells.

The agencies online , fleeing the term commission , which attributed to the activity of traditional estate agents. The case is that “commission” is defined as the collection of an amount of money proportional to the work done; in real estate, a percentage of the amount of the transaction.

On this slight difference in vocabulary, the communication of the proptech , fundamentally related to the services to owners , has been based . They substitute commission for a single service fee . In this model, some establish a prepayment and others approach the remuneration to success model, when an owner sells.

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PROPTECH, WHAT SERVICES DO THEY INCLUDE?

  • Management software for real estate professionals, such as CRM systems that allow the management of large amounts of data or information software based on big data and artificial intelligence.
  • Property marketplacesReal estate as portals and aggregators of real estate supply data.
  • Coworking and coliving , a collaborative economy for renting private holiday from a distance or finding roommates through an app.
  • Domotics , turning homes into Smart Homes, which allow smarter and more efficient use of the home.
  • Digital marketing in its different aspects: convergent, inbound, marketing 4.0.
  • Virtual tours, virtual reality, virtual decoration , 3D plans,
  • Blockchain and tokenization of assets in Real Estate, to convert assets into tokens to carry out transactions
  • Valuations and price simulators with Big Data.
  • Tenant scoring : possible method to avoid defaults.

Companies that offer real estate services, online agencies , usually have in their service portfolio:

  • Photo report
  • Publication in real estate portals
  • Preparation of documents: down payment contract, the simple note, the energy performance certificate
  • Accompaniment to notary

Given these services, it can be confirmed that real estate agencies also offer them, incorporating others that cover the entire process, such as:

  • legal, financial and tax advice,
  • visit management,
  • exhaustive knowledge of the area,
  • negotiation,
  • supervision of procedures and documentation.

The real estate digitization is no stranger to leading companies offering real estate services for years.

The big difference from prop-tech is that the process is directly managed by the client, with an integrated digital platform .

REAL ESTATE BUSINESS MODELS

ONLINE AGENCIES

They offer unattended management tools: they facilitate access to applications so that the client himself manages a large part of the operation, such as a digital signature, online calendar for visits, automatic publication on portals, virtual decoration rendering, …

Examples: Housell, Housify

Like any business, its success depends on good service and its profitability; rounds of financing typically cover your large marketing investments.

Some of the initiatives, such as Cliventa, Nethousers or Smartsell, have not gone ahead.

ONLINE HOME BUYERS

They buy the house from the owner, on contact.

Examples: Clicpiso, Tiko.es, Prontopiso.

Its main attraction is that the owner can sell quickly, in a matter of days, but at a lower price than the market. This margin allows the buyer, to apply reforms and improvements that mean a higher value of the home for resale.

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SMARTHOUSING

Companies like Libeen propose a disruptive method of buying a home , based on rent in the first instance:

  • The buyer contributes a small entrance (5% against the usual 20% -30%).
  • The interested party enjoys the benefits and facilities of living for rent, but amortizing approximately 40% in the monthly payments to buy the house in installments in an easy and flexible way.

A model that thrives on rent with an option to buy, but adapted to the reality of generations

CROWDFUNDING

Small-scale investment platforms, which seek the profitability of rental and the capital gain from the sale of real estate. 

The investor builds an investment portfolio in which to diversify savings, without the need to invest in a single product or financial leverage.

The most recognizable example is  Housers , but there are other initiatives like Stockcrowd or Urbanitae.

PROPTECH STATUS

There are almost 3,000 Proptech companies in Europe, according to Proptech House’s “ Demystifying Proptech ” report. These companies propose technological, innovative and efficient solutions.

They offer services to both real estate agencies and end customers, related to marketing, user experience or technological tools (management, visual improvement, multimedia, …)

Proptech Activities cover the value chain in the real estate sector:

INBOUND MARKETING FOR THE REAL ESTATE SECTOR

Digital marketing is one of the services most demanded by real estate companies, since its planning and development requires specialized personnel in aspects such as SEO positioning, PPC campaigns, management of social networks and audiences, reporting, publication design, copywriting and strategy. .

Urbaniza Interactiva supports digital transformation in the real estate sector . Book your digital marketing consultancy and get contacts from your own channels (web, blog, emailing, telephone, social networks), supported by digital marketing tools.