Social Real Estate: Is Groupon a Viable Marketing Solution

 

I have been toying with the idea of using Groupon for a while. Most agents’ opinions were that Groupon could not be used successfully to get more customers in the world of Real Estate. They complained and belly ached about the fact that they “don't make enough money off deals as it is and now we're going to confirm what the public thinks that we make too much money by offering discounts?” The naysayers can put it to rest now. I always knew there was a way to make Groupon work for Real Estate I just hadn't put my finger on it yet. Well, the wait is over! Dream Town Realty in Chicago, IL launched the first official real estate specific Groupon campaign in April and man did it go over well! They weren't exactly original since deals like this have been offered on http://housetipper.com/ since its launch, but who needs original, we're looking for results!

I don't really want to get into the specifics about what Dream Town offered but rather their potential for income from the offer. If you want to see their offer go here: http://www.groupon.com/deals/dream-town-realty. After putting the offer out for five days they had over 200 people buy it for $25 a pop. If they were featured, Groupon will take a cut of the $25, but the gross income just from the campaign was almost $5500 dollars! Now let's talk real estate. They had about 220 people buy the offer and their contract must be $150,000 or higher to use the coupon. Let's even be conservative and say that out of all the closings from this campaign the average is $175,000 at 3% commission and that 20 people never redeem the offer. This still comes out to be over $1,000,000 in commissions in one year! Those are staggering numbers!

Let's be even more conservative. Let's say that the average contract was $150,000 at 2.5% commission and that only 100 people, less than 50%, redeem their coupon and the realtor pays the $1000 dollars cash straight out of their commission. They will still make $275,000 dollars in commission and that is being way over conservative. We won’t even get into the fact that they will likely resale their home with you if you do your job as an agent... $$$

So after all that, is Groupon a viable real estate marketing solution? Let's see... they have made a connection with your company as being tech savvy and as part of their social network, they have a vested monetary interest in using your company, and they have likely suggested your company to their friends. What do you think? Of course it is a viable option to use when seeking to gain a more loyal and satisfied clientele. The main question is not "if" you are going to use Groupon but "how"?

Distressed Properties: A Growing Percentage of Overall Sales (Special Offer)

As we have reported since the beginning of this year, foreclosures are continuing to grow. Not only are banks hiring more law firms, Freddie Mac has increased its number of firms in Florida from 4 to 14, but the number of foreclosures being sold has sky rocketed bringing the overall market value of homes down. Just this Wednesday, we heard from an officer over the southeastern region of Bank of America’s foreclosures that our area was going to see a flood of REOs released for sale in the next two to three months. Most likely we will see a spike of foreclosures in the market around third quarter of this year and continuing on into 2013. This is good news for people who are already in the REO business and have established relationships with asset managers, but for those still outside the REO world this is not good news at all. 

The foreclosure "crisis" will only serve to make traditional homes sales that much harder in the coming months and years. It is essential for brokerages and agents alike to begin to supplement their traditional sales with distressed property sales, including short sales which are becoming easier and easier to close. Those agents who think they will "make it" without getting involved with distressed property sales are fooling themselves. Here are some reasons why you need to get involved:

1. You might "make it" but you won't "make IT"  

What is the IT? IT is money baby. You may fight your way tooth and nail through this wave of foreclosures and "make it" out the other end tired, burnt out, and ready to quit, but it doesn't have to be that way. You could procure some REO accounts and really "make IT" so that when this crisis over you're sittin' prettier than anyone else in your area. Bottom line: There is a lot of money to be made.

2. The faster we sell them, the faster the "good ole' days" return

Until we get rid of these foreclosures the market will not return to its normal ebb and flow. Foreclosures are dramatically decreasing the overall market value of homes. So the logic follows that the more agents we have selling REOs the faster we will get rid of them and usher in the days we all long to relive.

3. We will teach you how to do it! 

If you want to get into the REO business and get your piece of the pie here is a way for you to start getting in on the action. To find out more information visit: www.foreclosurefridays.org. Foreclosure Fridays is way for you to learn what it takes to the get REO accounts, manage REO listings, work with asset managers, and continue to grow your REO Team. Enter the code: NFI FREE for a free month long trial! You won't regret it!

Osama Bin Laden is Dead: Social Media & Our Society

Last night the world breathed a sigh of relief and a cry of victory as a long awaited announcement was made, "Osama Bin Laden is dead." The justice of that moment sent many Americans into a frenzy of celebration, a flash mob of citizens gathered outside the White House and sang "We Are the Champions", a celebration broke out in Times Square around a group of fire fighters, and cadets at West Point passionately sang our national anthem. So how were these celebrations started, how did the crowd gather outside the White House before the President ever appeared from the East Room? The answer is simple: Social Media. The first twinge of the evening hit Twitter from the account of the Presidents Chief of Staff. Not longer after that there were pings of Bin Laden in the air, and by 10:15 it was clear what the President would be speaking on despite the fact that his topic had not been released. Before the President ever reached the podium most of the world knew that Osama Bin Laden was dead, not because of the great reporting of International Media Giants, but because of tweets from Congressional staffers and White House interns. 

I found it intriguing that before the President ever said a word "Osama Bin Laden" was trending on Twitter and my news feed on Facebook was overrun with statuses about the death of Bin Laden. People on the streets discovered the news via their smartphones and told people they were walking by about the news. Our culture and society has forever changed. News and events are instantaneous. Many people were checking in on Facebook after the horrible storms in Alabama to let their loved ones and friends they were O.K. The Arabic Revolutions were started through social media and continue to grow through the avenues of Facebook, Twitter, and Youtube. Our lives have begun to revolve around these virtual venues of communication, and it's only going to continue to grow! 

So real estate agent, do you have a Facebook page, do you have a Twitter account, are you LinkedIn, are you a Tumblr, are you on blogging, do you even have a smart phone? If you don't, last night should be enough to convince you that it is time to embrace the change everyone around you has incorporated into their lives like second nature. They check their Facebook news feed like you watch the evening news, they follow trends on twitter like you read the obituaries, and they blog to the world like you write letters to editor. Maybe it's time to put a little more reach on your message and broaden your horizons to embrace the technological revolution of immediate world wide news from the most powerful tool yet: Social Media.

5 Mobile Apps Every Realtor Needs

I believe these are 5 essential applications that every Realtor should have on their smart phone. Why? The world of Real Estate is going digital and even more mobile. If you're not mobile, you're behind the times. In fact most first time homebuyers are between the ages of 24-35 and have a deep appreciation of and connection to technology. This makes it essential for us as Real Estate Professionals to meet the needs and expectations of our clients. 

Just so you know, some of these apps are iPhone proprietary but most of them are available in both the Android Market and the iTunes App Store. I'm a very frugal person and so all of the apps I am recommending are FREE!

NAVIGATION! Mapquest 4 Mobile

Every Realtor needs a navigation app, hands down! Some of you might prefer a TomTom or Garmin but I'll stick to my phone. The phone offers more options and capabilities since you could use it for walking directions in a large city or listen to music in the background while you're driving all for no additional cost. The MapQuest 4 Mobile app is a great option for any mobile device be it iPhone or Android. This is a free application offers: Voice-Guided/Turn-by-Turn Navigation, Auto Re-route, Walking & Driving Directions, Live Traffic Flow/Incidents, Map Rotates in Orientation of Travel, Place Map Toolbar – Look for restaurants, etc. So, as you can see, this app is a great option with an average 4-Star rating. 

PRODUCTIVITY! Evernote

Is organization an issue for you? For some of us it's an issue because we obsess over it, and for others of us it's an issue because we're terrible at it. For both us there is a solution and it's called Evernote. Evernote is an easy-to-use, free app that helps you remember everything across all of the devices you use phone, computer, iPad, etc. Stay organized, save your ideas and improve productivity. Evernote lets you take notes, capture photos, create to-do lists, record voice reminders--and makes these notes completely searchable, whether you are at home, at work, or on the go. Evernote is sure to help you get organized and stay that way; you'll never forget that MLS expiration again. 

VIDEO! Qik

Video is becoming one of the most powerful tools in the arsenal of property marketing and sales. Qik allows you to take video and share with others in a quick and easy way. Another great thing about Qik is that you can stream live video to people on a computer or on another phone! So you could even show a property to someone who lives out of town! Here are some of the features available: Live video calls over 3G, 4G and Wi-Fi, Video calls between Qik Android and iPhone/iOS users, High resolution video calling (up to VGA), Receive video mail when you can’t talk live, Send video mail free trial, Share live videos to Facebook, Twitter, and more, Instant Connect: Automatically see who in your phone’s contact list is available for a live video call. Definitely a great option for any realtor who's video savvy! (Add a wide-angle lens for awesome video tours!)

PROPERTY SEARCH! Realtor.com Real Estate Search

For those clients who are ill prepared and haven't really narrowed down their desires for a home, you have this wonderful little app! For instance, you've just shown one of your listings and your client saw a house on the way they wanted to see. Well save yourself a trip and pull it up on your phone! Show them the photos and maybe they'll decide that's one less house they want to see. Here are the features offered by the app: Robust search capabilities with Area Highlighter (draw your search), Nearby Homes widget, Integrated Street View, Voice-entered notes, Save searches & listings (synchronized between the device & your account). This is a great tool for you in the field you just have figure how it's going to work for you!

FLOOR PLANS! Magic Plan

 This is a newer app that I believe will change the way a Realtor measures houses! Unfortunately it's only available for the iPhone at the moment, but there are rumors that it will be out for Android based phones in the near future. Magic Plan will create a virtual floor plan of every room just by simply taking a picture of each corner. Once you create the room you can then piece it together with the rest of the house for a full floor plan! You have to see this application in action to really understand how revolutionary it truly is! So watch their video here: http://youtu.be/Px9QTgr8fRY

I hope these applications will help you in your endeavor to sell more property, but nothing will ultimately replace good old dedication and hard work!