It is a good time for the real estate sector in Spain: the assets are recovering their value and buyers are being encouraged to buy. It is encouraging, although that does not mean that growing a real estate business is easier.
If in your portfolio you work for a business of this type, and especially, if you own one, you will be interested in this article: five strategies that real estate businesses in the United States use to grow their businesses.
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1. Get “hidden” properties
If you can’t find properties before your competition, it’s hard to make money. Find directories or properties whose owner needs to get rid of quickly, and don’t think about foreclosure.
The key is to get advisors. When someone comes after searching for “ Valencia real estate consultant ”, they must find someone who is able to offer not only what they can find in niche directories, without things that only experts can offer.
It may be the property of a couple who is going through a divorce, or because the owner is moving to another country or is experiencing financial difficulties. They are the ones that need to be sold, and they are the ones that the owner himself puts up for sale, without going to a real estate agency.
Finding goods of this type means being able to get it at a price below market value and will increase your performance. Find partners, such as real estate attorneys, or others, to inform you.
2. Reform floors and sell them
Buying apartments or houses to reform them, and then selling them has become a typical investment in Canada and the United States, and it has been so successful that there are television programs where they show only that.
The reality is not so pretty: according to studies in those countries, a real estate agent earns on average ten thousand dollars in each transaction of this type. According to Mark Ferguson, owner of Invest Four More (financial agency), the profit in this type of operations is in having a good volume of properties and partners that can work at a competitive price.
The key to making money on this is to buy goods below the market price and have partners that reform, close, fast and cheap. So you can earn up to € 20,000 per transaction relatively easily, for a good that perhaps was not attractive initially.
3. Target the vacation market
If you have your business in Valencia, you should analyze the intention when someone searches for ” Valencia real estate ” on Google, and you will discover that not everyone is looking to buy a flat, or a chalet, but to rent it for a few days to spend the holidays.
People are already running away from hotels and looking for normal home rentals for their vacations. You can get homes for it, or do as companies in the United States that acquire them and rent them themselves throughout the year.
The key to this type of business is to keep the price at an optimal level most of the year, without inflating during vacation periods. HomeAway, a rental company of this type, in the United States, calculated that an average owner rents a home 18 weeks a year and earns $ 28,000 with it, 75% of the mortgage per year.
4. Invest in virtual tours and new furniture
The National Association of Real Estate Agents of the United States assures that 43% of the buyers begin their search for properties on the internet. But also that most people decide when they see the house and imagine living in it. How to offer that online?
The photographs are not enough, because we all know that they can be made up and do not show us the reality. So it is a good idea to invest in virtual tours on Google Street so that you can “walk” in 360º in homes, the production is not expensive and the ROI is high.
To that I will add one thing: professionally decorated houses sell on average in 33 days, while those that do not, 196 days.
Buy furniture, decorate your house well, and offer a virtual tour, plus the visit to the usual house, and you will reduce the life time of the houses in your company. That means money.
5. Do all kinds of marketing, without forgetting the traditional one
One mistake that many companies make is to put aside traditional and direct marketing as always: flyers, business cards, word of mouth recommendations, catalogs, etc.
Make a comprehensive strategy that combines online, automated, social media and traditional marketing. The latter has the drawback of not being traceable, but still has an interesting ROI.