Real Estate and the Internet: A Lucrative Match

by Mary French

Part I

As the real estate market continues to boom, homebuyers are looking for a simple way to answer their questions without having to do a lot of work. Since the Internet is becoming the easiest way to access information about almost anything, why not put the two together?

According to a study conducted by the National Association of Realtors in 2005, the use of the Internet to search for a home has risen from 2% in 1995 to 77% in 2005. With so many buyers turning to the Internet to search for a home before they even contact an agent, its important for the agent to have all his or her information available online, including all the local listings from the Multiple Listing Service (MLS), if allowed. This is especially true with the competitive nature of the real estate industry. If an agent doesnt have a fully equipped website, the buyer will go somewhere else for information. And they definitely have many other options.

Over the past five years, says the NAR survey, the number of agents with websites has increased 129%, leaving those without a website far behind the pack. Many agents cringe at the mere thought of creating a personal website, however, but the relationship between real estate and the internet shouldnt be intimidating. It should be intriguing. Never before have agents had direct access to so many people with whom they would not normally reach. In terms of lead generation, only referrals and repeat clients rank above the Internet as the most effective methods of gaining new business. Many have jumped at the chance to take advantage of this opportunity and are already investing heavily in internet marketing.

In 2006, 56% of agents spent more than $1,000 on technology and 30% spent $2,000 or more. As so many agents are becoming technologically savvy, it is becoming a necessity to market online to level the playing field with the competition and appeal to the millions of prospective buyers seeking answers on the Internet. However, with online marketing, you get what you pay for. Its amazing that many real estate professionals continue to produce sub-par websites without any regard to how they might be perceived online. With 77% of the potential market going online first, why would you spend the majority of your branding efforts and resources elsewhere? Gone are the days where a free website produced by "my sisters kid" will produce results online. In fact, these sites stand out like a sore thumb in the new world of online marketing. If you dont have a professional, polished and complete site you will actually hurt your business in the long-run.

However, creating your own website takes some time and effort, which many of us dont have to spare. That is why seeking some experienced help could be the ticket to successful, stress-free online marketing.

To take some of the edge off, a digital marketing professional can assist you with many aspects of your website, such as helping you with your User Interface (UI) and Search Engine Optimization (SEO) strategy, and assisting you with your overall online marketing and advertising plan. Your job is to provide the information the clients are browsing for, such as home buyer tips, recent mortgage rates, relevant articles and MLS data as well as the money to make sure its done correctly. If the thought of paying somebody to get you online is discouraging, remember this old saying: You have to spend money to make money. Agents who have mastered this mantra are reaping the benefits.

Real Estate and the Internet: Part II Get your MLS Listings Online

Forty percent of those who spent more than $5,000 on their websites showed that more than 60% of their leads came from the Internet. Overall online marketing spending has increased as well. "Businesses are rethinking their marketing spending," said Carl Howe, a principal of Blackfriars Communications. "Online spending of all types grew to more than a quarter of marketing budgets. We could see even more growth online if executives start spending the larger budgets they have planned for the second quarter." Now theres some encouragement.

Once you have a website, there are still some decisions to be made to ensure that you get the most coverage possible for your listings. First, in order to display your listings you will need to sign up for a Multiple Listing Service (MLS) and get authorized to receive the IDX data from your local MLS. IDX, or Internet Data Exchange, is the means of extracting data from the MLS and delivering it to a website for public consumption. In other words, IDX makes it much easier for potential buyers to browse your site for listings that fit their needs, giving the "little guys" some of the same marketing potential as the "big guys". If you dont display IDX search tools on your website, potential buyers could possibly pass up your site in favor of the competition, which isnt limited to just agents and brokers. With the tightening market, it is important for those selling their home on their own to utilize the local MLS as well.

A common synonym for IDX is Broker Reciprocity, so, in other words, when setting up your site you have to choose if you want your listings available on other brokers sites and their listings available on your site. You may be asking yourself, why would I want to display other brokers listings on my website? When you display these listings, you give potential buyers a reason to keep coming back to your site, making you a reliable real estate resource for your area. And allowing other brokers to display your listings is basically just free advertising. The more places your listings show up, the faster they are likely to sell. What agent doesnt want the greatest possible amount of exposure for every listing?

The Internet is the destination for millions of information seekers. Never before has there been a resource that gives you access to so many people, all over the world. As the internet becomes a standard in marketing a successful business, how can you afford not to focus your efforts on this rapidly growing channel?

IDX, Inc. creates solutions to promote and connect sellers with buyers using innovative server-side technology. Headquartered in Eugene, Oregon, IDX, Inc. specializes in advanced web-based application development for industries and businesses worldwide. IDX Broker, the primary application developed by IDX, Inc., helps inventory and real estate professionals generate the most leads at a low cost.