ForeclosuresMass - ForeclosuresMass Monthly - Feature Article - How Web 2.0 is Changing the Face of Real Estate (May 2008)

The author of the popular Future of Real Estate Marketing blog, Joel Burslem is an expert on the impact of Web 2.0 on the real estate industry and has been quoted by the Wall Street Journal, BusinessWeek and the International Herald Tribune, among others. In this interview, Joel gives his insight on how new technologies, such as social media and video, are changing real estate marketing, lowering marketing costs, and helping real estate professionals build online networks.

ForeclosuresMass Monthly: Joel, are only big real estate companies using new technologies to market their companies, or can the little guy or independent agent take advantage of the, too?

Joel Burslem: Real estate is a social profession – for example, you talk to people, your business is based on referrals, and you cultivate a sphere of influence. Realtors have embraced Web 2.0 because things like blogging and social networking (i.e. Facebook) are natural extensions of this offline behavior.

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To answer your question, no, you don’t have to be affiliated with a national or local real estate company to start a blog or open a Facebook page. Any real estate professional can take advantage of these marketing tactics.

FMM: Let’s talk about video for a minute. You give a few examples on your blog about realtors and individuals holding “open houses” via YouTube. Is this an idea that’s catching on?

JB: I’ve been waiting for video to gain much wider acceptance in the real estate industry – I thought it would be 2006, then 2007. I think 2008 might be the year because technology is so much more affordable. You can pick up a small flip video camera for a couple of hundred bucks, and video software is so much easier to use, too.

Video is the next evolution with regard to online marketing and real estate because it makes so much sense. Video tells the story and shows the property in a way still photography cannot.

FMM: But don’t you need a professional to do your video for you? You don’t want one of those blurry homemade videos.

JB: There are varying degrees of video. A multi-million dollar property requires a slickly produced video; for a $200K starter home, you can do it yourself if you feel comfortable, or hire a college kid to do for you and keep costs low.

The power of video is that it represents authenticity and transparency. If you have a low-budget video, this is not seen as a negative – in fact, it can be seen as a positive. The video is not a hyped-up sales pitch, which people automatically tune out. It’s a regular person walking through a regular home.

FMM: Are agents and real estate companies really using Facebook to sell properties?

JB: No. Facebook, and other sites like it, such as LinkedIn and MySpace, are the online extensions of a person's offline identity. People use these sites to cultivate "friends" or "connections" (depending on which site you’re using), and there’s a fine line between building a business network and doing actual business.

With both Facebook and LinkedIn, you can build groups of likeminded people – for example, if you live in the Portland, Oregon area, you could start a Portland Real Estate Enthusiasts Group on either site. You want to be careful, however, about using this group as a prospecting tool. Most people frown on that.

You can also commercialize your presence on Facebook and MySpace, both of which allow you to build pages around a business product or service. For example, I have my personal "Joel Burslem" Facebook page, and I have a Facebook page for my blog, Future of Real Estate Marketing, to which people have opted in. In fact, I have 330 fans. I feel comfortable marketing to them because they have opted in, so every once in a while I'll post a link to an article where I’ve been interviewed.

FMM: If you can’t do real business on social networking sites, what is their purpose?

JB: That's a great question. Social networking, like video, is an emerging technology. There is definite value in having an online presence – especially since people use these networks extensivel; however, no one has figured out what the end result of a social network should be. So, if you do use a social networking site, don’t go in thinking you’ll increase business immediately or automatically. What you’re doing is building your online presence and ensuring you’re "hanging out" where others who might be interested in your services are hanging out. These are people you probably won’t meet in your day-to-day offline world.

JB: Real estate blogs are huge! I've seen three types: industry type blogs, hyper local blogs, and specific property type blogs. Let me give examples of all three.

Industry type blogs seek to educate consumers – how do you buy a house, how do you work with sellers, etc. These blogs are broad in scope.

Hyper local blogs focus on a particular geographical area or neighborhood. These blogs focus on the community, the market, any development issues, etc. If you’re a real estate investor who specializes in a specific metro area or town, this would be a perfect blog type for you because you probably have all the market information in your head. Using the blog, you can share this information online and establish yourself as a thought leader for your niche. And, because you’re offering valuable information, you’ll build an audience of readers and prospective buyers – both known and unknown.

Agents I know who have these types of blogs say they get 70 to 80% of their leads from their blogs. They'll get queries that go something like, "I’ve been reading your blog for four months now and am ready to buy in this neighborhood." Internet savvy buyers will look at three to four agents before they pick one, so a blog is a great way to reach these prospective buyers – and build their trust in you before you meet face-to-face.

The third type of blog revolves around a particular property type, such as new condos or sub-divisions, within a specific metro area. One guy I know, for example, focuses specifically on waterfront properties in the Bellingham, Washington area. He wants people moving from Seattle to Bellingham – and who sail or boat – to call him. So his blog focuses on waterfront properties or those with access to docks or water.

FMM: We've seen a number of advertisements for SMS – text messaging – for real estate. Has this technology taken off yet?

JB: Like video, this is another 'we’re still waiting for something to happen' technology. SMS makes a lot of sense – as a buyer, you go view a property and find the flyer box empty, so all you have to do is enter a special code via your cell phone and you get a description of the property as a text message.

However, the problem with SMS is that it hasn't been fully adopted by consumers. Business people use it because of BlackBerries or smart phones – as do Gen Yers – but you still don't see wide scale adoption across the U.S. This is vastly different from countries such as China where SMS is huge. People use their cell phones for everything in Asia!

FMM: Speaking of which, what is the status of mobile Websites and real estate? Is that something real estate agents and investors should have on their radar screens?

JB: Definitely! One, the phone is going to be our mini-computer – which it already is in China and other countries. My wife and I lived in South Korea for three years. People there did everything by phone – watched TV, played multi-player games, sent text messages, updated their MySpace page, etc.

And, two, technology is just getting easier and cheaper to use. Look at the iPhone – Apple has made existing technology readily available to the general public. My four-year old niece figured out my iPhone in just a matter of minutes. Mobile Web is definitely the future – it won’t be much longer until you can buy an incredibly powerful computing device like the iPhone for $100. FMM: Do you have anything final to add?

JB: Although they're gaining traction at a rapid rate, many of these technologies are still very new. Don't be afraid to experiment and see what works – and do'’t be afraid to make mistakes. As I said, no one really knows what a social network should look like or how many leads a YouTube open house video should generate. If you find that a blog generates more inquiries than does video, then stick with the blog. But keep your eye on what's going on so that you can incorporate new ideas into your marketing mix.

Joel Burslem is the author of the Future of Real Estate Marketing blog and the Director of Marketing for Inman News, a Website featuring independent real estate news, information, advice, research, opinion and commentary for industry professionals and consumers alike. Joel can be reached via his blog.