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Madison PurveyNovember 7, 20174 min read

What Works: The Most Efficient Real Estate Marketing Strategies and Tools

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Scholars all over have studied the uses of different real estate marketing tools, and how they correspond to real estate agent success. We have researched and organized this information to serve as data for you to analyze and adjust your marketing strategies according to your personal goals. As a marketer, it is important to stay up to date with current market trends because the real estate industry is constantly cycling, outdating trends and refreshing old ones. We evaluated two academic sources in order to give you the tools and information you need to be successful real estate marketers.   

The first source we researched was the work of Marcus T. Allen, Anjelita Cadena, Jessica Rutherford, and Ronald C. Rutherford in their academic journal "Effects of Real Estate Brokers' Marketing Strategies: Public Open Houses, Broker Open Houses, MLS Virtual Tours, and MLS Photograph." The authors explore the success rates of realtors using a variety of marketing strategiesincluding public open houses, broker open houses, MLS virtual tours, and MLS photographs. Many of the studies were conducted in terms of time-on-the-market and price. 

Broker vs Non- Broker Sales: 

  • "Yinger(1981) develops a theoretical model of the brokerage market and concludes that brokers, due to their expertise and access to buyers, can be expected to sell houses more quickly and for higher prices than owners."
  • "Rutherford (2007) considers market outcomes related to the use of Realtor® and non-Realtor® brokers and reports that transactions involving Realtors exhibit higher prices and reduced time-on-the-market."

Public Open Houses: 

  • The authors quoted American author and editor Jack Harris by stating, "Harris reports survey findings suggesting that 77% of brokers surveyed who hold a public open house do so merely to appease the seller and only 41% of the brokers surveyed believe the technique helps sell the house." 
  • If this finding is true, then less than half of brokers feel as though public open-houses are an effectivemarketing  
  • Public Open Houses have "positive relationships with time-on-the-market"

Broker open Houses: 

  • However, the findings for Broker open houses were much different, "Harris (1998) reports that 99% of the brokers responding to his survey have used this strategy and that 59% of them believe it is effective in selling houses." 

MLS Virtual Tours and Photographs: 

  • Technological advances have made marketing easier and less expensive allowing agents to includevirtual tours and pictures on their MLS property posts.  
  • "The ability to “see” a property without having to physically visit it is likely to provide valuable information to potential buyers."
  • MLS photographs "havepositive relationships with time-on-the-market, although the positive effect of additional MLS photographs begins to decrease at approximately six MLS photographs."

Conclusion:  

  • "Virtual tours, broker open houses, and eight or more photographs increase the probability of a successful sale, but public open houses decrease the probability of sale. Overall, these results indicate that these real estate broker marketing strategies result in substantial price and probability of sale effects, but less substantial time- on-the-market effects."
  • "When considered together, themagnitude of the price increase associated with using these four strategies appears to overwhelm the relatively small increase in time-on-the-market." 

The next source we researched, "Real Estate Information Technology: Influence of Email Marketing on Real Estate Agent Performance," is froJournal of Real Estate Literature and was written by Ram N. AcharyaAlbert Kagan, and Travis Zimmerman.  

  • In the academicstudy conducted, "A structural equation modeling approach is used to evaluate the impact of email marketing on real estate agent performance using empirical data from a survey administered within the greater Phoenix market,” and "evaluate the role of email marketing in improving agent performance using empirical data from the Phoenix metro real estate market."

"Since information is the primary input for the real estate brokerage industry, a Realtor’s ability to collect, analyze, and communicate real estate information with prospective customers will determine his/her performance."

Email Marketing: 

  • "The email marketing option is expected to substantially reduce information sharing costs and improve agent performance."
  • An agent’s perception and attitude towards information technology affects their decision to use email marketing. 
  • Although having a personal connection with clients is important for positive performance rates, "adoption of innovative technologies such as podcasts, live open houses, webcasts, and electronic mail that enhance communication and improve an agent’s effectiveness will be essential for their continued success."
  • The results of the study conclude that agents who adopt"emerging technologies, such as the use of email marketing, tend to perform better than non-adopters."
  • "Real estate agents should be encouraged to retool themselves to adopt new and emerging technologies that are likely to enhance their communication abilities."

In conclusion, it's easy to see that there are a number of different strategies and tools real estate agents can use in order to maximize their efforts, and make sure they're spending their time in energy in the right place. 

 

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