The Unconditional Blog

The impartial voice of the industry


Innovation in real estate cannot be hampered by access to print media

Posted on: April 30th, 2009 | Filed in Online marketing, Real Estate Industry

Home AutomatiomA new entrant to the real estate industry seems to have accidentally fallen foul of the terms of business of the leading property magazine ‘Property Press’ as reported by the National Business Review.

Property Wizards has decided that the fixed fee model initiated with early success and much fanfair by ‘The Joneses‘ is worthy of revisiting with their $7,000 fixed fee plus marketing. There is no doubt that any industry which even in the current economic climate transacts business to the value of $20+ billion per anum will attract innovation and challenges to existing business models. It is certainly healthy and a reflection of a continual focus towards the consumer that innovative business models should appear and test the established model.

The part of the article that I found most interesting in the story as reported by both the NBR and Landlords was the fact that whilst on the face of it Property Wizards are frustrated that a slight oversight has seen them excluded from future advertising in Property Press – they are however not overly dimayed as they clearly recognise that the best value in marketing is delivered by the web.

This is very quickly confirmed by a review of their website which highlights that in the ranking of services offers to vendors – they place website marketing as the #1. This exactly correlates with the finding of the Nielsen Online survey of 2008 in NZ which when a sample of 1,100 property seekers were asked as to the top sources of information when searching for property cited specialist real estate websites as the #1 source – spending an average of over two and a half hours per week searching. By comparison all of the print media options fell below eighty minutes and saw a year on year fall whilst specialist websites grew from 161 to 167 minutes per week on average.

Nielsen online surveyu of real estate sources of information NZ 2008

Article Discussion

  1. Without doubt the observation that the future of real estate sales is online is a well-founded one. The print medium environment is struggling under a weight of over-pricing and under-delivering and is struggling to compete in a consumer-driven world that has already shifted to the unpressurised ease afforded by Web 2.0.
    As for fixed fee real estate companies such as those mentioned, since 2004, Green Door has been proving how a transparent, low-cost, high-value offering is the future of the real estate industry and, increasingly, the route most favoured by a property buying and selling public thoroughly disillusioned at the overt greed of those still charging an unjustifiably high-priced commission.

  2. Gary,

    Very interesting to get your perspective. Just for clarification and not wishing to get into semantics I would have to say that I fundamentally believe that the future of real estate marketing is online – real estate sales is a whole different ball game and at this stage selling is not facilitated online.

  3. Gary, disillusioned, overt greed, unjustifiably. Strong words indeed. My thoughts, given with sincerity in the hope that you could enjoy even more success – If you switch your thinking to how you can work well beside the existing model, you will have great success. Best luck.

Post your views