In the Gospel according to NAR, 77% of buyers use the internet to search for homes. This stat has become sacred dogma, incessantly chanted by MSM and the bloggerati. It provides the philosophical foundation for putting your listings on all manner of websites. It requires you do penance to upgrade to the revered “featured listing”. To question this stat would be a blasphemy akin to questioning the earth’s roundness (actually, the earth is an oblate spheroid, but I digress.)
As you may or may not know, the sacred stat was created when 7,800 of 145,000 selected buyers answered a NAR questionnaire. Having never seen the question, I am curious to read how it was framed. Years of legal wrangling has taught me how the framing of a question can almost guarantee a desired answer. Now, I am not suggesting that NAR did anything sinister, but I’d like to see the question, and its context. Forget for a moment that less than 5.5% of the buyers responded—I understand in the statistician’s number crunching church, this may be enough to sanctify the stat— but still, that’s a lot of empty pews. I too was a believer until someone made me question my faith– the man (and woman) on the street we questioned during the Blog Tour.
Based on our Blog Tour research, by no means scientific, we realized the stat, even if true, does not provide a guiding marketing principle . For one thing, it does not identify WHEN or WHERE consumers search online. We think the “When” is important because if it’s lower on the list of search activities, real estate agents ought to be spending more energy and resources reaching the consumer before they hit the keyboard. We think the “Where” is important because it would allow for the efficient allocation of resources online (Oh, oh, did I say “efficient allocation of resources”? Quick, pass me the economist antidote.)
BLOG TOUR RESEARCH RESULTS
1. The Internet is the Last Resort for Home Search
First, put down those pointy stakes and douse that fire.
We asked: How did you find your home? Here is the heresy we heard: Most buyers DID NOT BEGIN their search for homes online. It may be on the search list, but it is not first, second or possibly, even third. The Internet is not a starting point for most home buyers. Based on our findings, the vast majority of real estate buyers (and renters) start searching elsewhere. They start OFFLINE. They tell family and friends (even doormen) that they are in the market and ask for advice and referrals— WOM (word of mouth) is alive and well in real estate. Before picking up a mouse, they drive around the neighborhoods they are interested in (they usually know the neighborhoods they want to live in by the same old fashioned means– family, friends, personal experience in the neighborhood). They look at lawn signs and visit open houses. They’ll look in the local paper– gasp! (yes, they look, but they do not usually call— that’s why print is viewed as having a low ROI– how do you measure a look at a print ad– it’s not like a click) They’ll even walk into a storefront brokerage.
Only AFTER offline methods fail, or wanting to expand their search, do they search the internet. The Internet is, we believe, the last resort. Why? Because most consumers do not have a clue where or how to “effectively” search for homes on the internet. They know how to email and check stock quotes but most are “REC” –real estate challenged. It is easier for them to find porn than a penthouse on Park.
Tip: Get consumers before they get to their keyboards. Do not give up on traditional methods, just do them better than your competition— so when buyers and sellers get to their computer, they type in your brand name in the Internet box.
2. Google is God (of the Internet home search, that is)
For most buyers, Google’s ubiquitous white box is the Internet.
Buyers do not start a home search visiting real estate listing sites, real estate search engines, or real estate broker sites to search for houses. They overwhelming start on Google and where that takes them they don’t know. You’d be surprised what they type in.
3. WHO THE HELLO IS Z-LLOW?
The reason buyers do not visit real estate listing sites, search engines or broker websites is simple. They don’t know they exist. Yes, many have heard of Realtor.com but many more have not, especially the youth. Most have never used the online websites we all ASSUME they use. Most have never even heard of them.
Even in its hometown of Seattle, Z-llow is unknown to most people — one woman thought it was a dance and demonstrated it for us. No one knew Redfin– it may as well be an exotic fish for your aquarium. Why? We believe the reason is online real estate web sites do an inadequate job of advertising and marketing their brands offline. They think because they solely exist online, that is solely where they should market. It may be a fatal marketing mistake. When I asked Glenn Kelman why he did not advertise on a huge brick wall across from his building, where streams of people walked every day, he said he saw no benefit in it. Glenn, more people will pass that wall than will stumble upon your website. (And those people will buy or sell a house without you.) The wall you ignore is a pointer to your website, no less than a Google keyword.
The message: Since the Internet search begins with Google (Yahoo and MSN), broker and agent resources should be allocated to SEO and “market keyword rich” content, whether by purchase or otherwise, to drive traffic to your branded website or blog. Become a destination site by providing local and hyper-local content. Own the white box by being seen outside it.
LEARN FROM THE CAVEMAN: The Writing is on the Wall
In our opinion, online listing sites who do not advertise and market offline increase their likelihood of failure. (A little gecko told us that.)
As we traveled the highways of America, we passed many a billboard advertising real estate. They were mostly local builders and FSBO websites. Some franchises did advertise this way— notably RE/MAX. These guys get it. They understand that traditional media should be used to increase brand awareness and drive traffic to their websites.
Brand, baby, brand. Heck, even a caveman knows where to shop for car insurance online. Where are the signs and commercials for Trulia, Z-llow, and Redfin? (At least Trulia had big signs outside their office— Z-llow has it’s offices on the 30th floor (and their marketing heads in the clouds— consumers can’t see up you there, Rich).
In case you don’t know it tech boys and girls, the online user lives offline– they walk the street, eat at sidewalk cafes and sip overpriced coffee (others go to Waffle House). That’s where they talk real estate. If Z-llow believes in the “conversation” at Z-llow.com, why are they not in front of the consumer where they are actually having these conversations? It’s unz-llowable! In order to reach the consumer in their native habitat, you MUST advertise and market offline. Heck, we’d only charge you a mil for that advice. (wait a minute, we just told them for free– dang!)
As online real estate sites increase (as Trulia’s Pete Flint acknowledged during our interview with him), you miss a golden opportunity to stand out from the crowd by not being outside—reaching offline eyeballs.
If buyers don’t know your name, how will they type it in the Google Box? They won’t. They can’t. You are then at the mercy of a keyword. Good luck.
Oh yeah, almost forgot, the only real estate website almost everyone knows is…. virtual drumroll, please…. Craigslist. Some are not sure if Craig is a real person but they surely know the site and use it. His success is due to offline word of mouth.
Further Illumination:
Robert Scoble (gotta love Robert– I do) talks about getting noticed outside the internet (among other things) in order to get noticed by the Influencers on the internet. Click here. (h/t Anthony Barba)
Technorati Tags: Real estate, real estate marketing, advertising, trulia, realtor.com, NAR, search engine, home buyer
