Once you have gathered your courage and decided to open your own real estate agency, you will almost immediately have some uncertainties. Even though you had everything perfectly planned, it is normal to have doubts about whether your business will work, taking into account that there are many competitors who have been in the market for longer, with more experience, resources and infrastructure.
Here we want to give you a series of keys that will not only help you compete better but also achieve better results and start to position yourself as a reference. To start, we are going to look at the three fundamental pillars on which you must base your strategy to compete in the real estate sector.
Where do I want to, and can, position myself as a leader to compete in the real estate sector?
There are three main lines of action to position your business in an emerging way in relation to the competition: cost leadership, specialization leadership and differentiation leadership. It is not a question of choosing one option or another but of linking them together in a unique package that works.
Competing in the real estate sector by being cost leaders
Let’s start with the first position: being a cost leader means offering the same service as the competition at a lower price. The competitive advantage is immediately perceived by the end customer.
However, it should be noted that, in order to be able to support a lower margin on each operation, you will have to rely on having the resources and skills to manage a large number of leads without affecting the service provided, as well as being prepared for a possible “price war” in your area of influence.
Betting on this strategy will give you immediate visibility with the possibility of scaling your business relatively quickly, and also allow you to learn quickly when faced with a large volume of work. On the negative side, this action will make you lose profit margin and if the communication is too aggressive, it can negatively influence the image of your company by being perceived as having a low profile.
Competing in the real estate sector by differentiating yourself
The second strategy is to be different. Differentiation consists of offering a type of property or providing a series of services to the client that generates the perception that you are unique. This is a key positioning action in which you add value to your business.
Opting for this route can allow you to raise your fees, as the client will understand that the service provided is worth it. On the positive side, you will find a higher rate of customer loyalty, an increase in profit margin, and the ability to generate attractive marketing actions and content. On the negative side, you are forced to be more demanding in data acquisition and analysis in order to be profitable.
Competing in the real estate sector by focusing
Finally, there would be actions aimed at limiting market segmentation, which means focusing on a particular market niche: a type of buyer (young people, seniors, investors, foreigners…), a type of property (luxury, second homes, properties in prime areas of cities…).
The difficulty of following this strategy is not being able to afford to cover a wide spectrum in order to try to be profitable by closing the largest number of transactions; however, this competitive factor can make a small real estate agency more attractive than a large generalist.
The key is to surprise
Once you have chosen your competitive strategy, combining the three actions described above, you have to assume that you do not live alone in the world and that what you do will also be susceptible to being copied by other agents.
For this reason, within a maximum period of four years, you should redesign the weights of each of these actions, analysing the evolution of the sector and your own results. In short, if you want to maintain a high level of competitiveness, you must always remain alert: researching and innovating.
If you want to stay up to date and surprise your customers, you can take note of the following 10 points that can help you compete more, better, and with better results :
- Inform your clients of the procedures you are carrying out
- Keep track of your customers’ preferences
- Specialize in advising according to the type of property and the type of client
- Invest in R&D. Train and update yourself. Participate in events and trade fairs
- Choose a niche market and become a reference
- Bet on quality customer service based on excellence
- Work on your digital marketing
- Take care of your brand image
- Offer value-added services that make you unique
- Establish strategic alliances
There is no doubt that the real estate sector offers great opportunities for development, and that is precisely why there is so much competition. Analyzing the competition is vital to knowing what to do and what not to do, and finding successes and mistakes in other people’s heads.
However, the analysis of your strengths and weaknesses will be responsible for outlining a good strategy that offers greater perceived value. So, remember that being different can become your best calling card.