Real Estate Developers are Missing the Boat

I read an interesting article on Paris Property Group’s blog that discussed how Americans are buying up Parisian luxury goods at an average price of more than 910,000 euros.

This is due to a 15% drop in property values over the last three years and the decline of the euro against the dollar.

Another article from Mansion Global discusses the impact of foreign investment trends and how they always change over time.

For the last several years the Chinese were buying up property like crazy, until August of 2017 when the government began limiting their ability to do that.

But as the Chinese buying trend appears to be in decline, investors from other markets will surely replace it; this has been the trend for decades.

“Foreign buyers make up a significant presence in the U.S. luxury market that will only increase as generations come here to study and geopolitical and safety factors continue to play a role,” said Shahab Karmely, the CEO of New York-based development firm KAR Properties. — Courtesy of Mansion Global

This is why luxury second home developers are constantly searching for ways to reach more high net worth buyers in important (often foreign) feeder markets.

For example, Julio Corredor & Cia, the Christie’s International Real Estate affiliate in Bogotá, Columbia would most certainly have the wherewithal to provide valuable exposure to a very high net worth audience of Columbian investors to luxury developers in Miami.

But how can this audience be reached at a professional, yet affordable way?

How does an agent listing a 20M-euro Tuscan villa promote the opportunity to the right audiences in London or Chicago at a reasonable cost?

The answer is Referral Network Marketing.

RNM 2.0 is a fancy sounding term that was coined by yours truly.

RNM 2.0: QUALIFIED LEAD GENERATION FROM A NETWORK OF REAL ESTATE AGENTS

RNM 2.0 turns what has always been considered a promising concept, referral business generated from a network of real estate agents, into a reality.

Before, referral agents were asked to promote real estate developments by sending their clients printed brochures with a business card, or emailing links to a development’s public website along with a plea to “pretty please, mention my name if you inquire!”

The process was time consuming for the referral agent and there was always great uncertainty as to whether or not they would receive credit for a sale.

This is why referral network marketing was always promising but rarely a proven, effective lead generation strategy.

 

What’s more, developers are doubling down with impressive referral fees of two, three or even four percent of the final sale price.

 

After an introduction, the consumer would just go straight to the seller and inquire directly.

RNM 2.0 is turning the old school referral program on its ear with better technology. Now, next generation property websites allow referral partners to publicly promote a real estate development anywhere in the world with genuine peace of mind that they will be credited with the referral.

With the click of a button, an agent in New York can promote a second home development in The Bahamas on Instagram or Twitter with the assurance that any inquiry will have to come through them.

Smart lead forms allow an agent in Denver to promote a development in Aspen to her private database with total transparency.

Both the agent and the sales team are notified simultaneously.

What’s more, developers are doubling down with impressive referral fees of two, three or even four percent of the final sale price.

 

“… referral network marketing will play a major role in our sales plans for the upcoming year.” Daned Kirkham Corporate Sales Director, Timbers Resorts

 

Proactive outreach to high net worth investors that reside in the private databases of real estate professionals in London, Bogotá and New York City can speed up sell out by months or even years.

So why wouldn’t a listing agent in Paris connect with the top brokerage firms in New York City, Boston, London or Dubai and build RNM 2.0 relationships?

Why don’t developers in Miami pursue this strategy and build relationships with top brokerages in Latin America?

Why don’t second home developers in the Carolina’s connect with brokers in Chicago, Nashville or New York?

Because they deployed RNM 2.0.

~Eric

 

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