Maximizing Real Estate Success: 5 Reasons to Leverage Social Media

In today's real estate market, social networking services (SNS) are not just a communication tool, but an important strategic tool that can make or break a business. According to a survey by the Ministry of Internal Affairs and Communications, the number of SNS users in Japan is increasing every year, reaching 102 million by 2022 and is expected to grow to 113 million by 2027. Under these circumstances, utilizing SNS in the real estate brokerage business is no longer an option, but a necessity.

However, according to a survey conducted by Ierabu, 65.2% of real estate companies do not currently operate SNS. On the other hand, SNS was ranked first by 57.8% of real estate companies in the "Methods to attract customers that will grow in the future," indicating that many companies are aware of the importance of using SNS but have yet to actually implement it.

This article explains 5 reasons why real estate brokerages should use SNS and specific ways to use SNS to actually achieve results, from specific techniques to cautions in SNS operation, providing useful information for digital marketing strategies in the real estate industry.

Five Reasons Why Real Estate Brokerages Should Use SNS

1. visually appealing properties

Real estate is a product where "looks" matter, and social networking sites can intuitively convey the appeal of properties through visual content such as photos and videos. In particular, visually appealing platforms such as Instagram and YouTube can effectively showcase a property's interior and exterior.

Compared to text-only advertisements, photos and videos can provide a more intuitive understanding of a property 's features . In fact, using room tour videos and other methods can simulate the atmosphere of a property without actually visiting the property, making it easier to lead to previews and inquiries. 2.

(2) Efficiently attract customers at low cost

Conventional real estate advertising is quite costly, such as newspaper advertisements, inserts, and postings on real estate portal sites. On the other hand, opening and operating an SNS account is basically free of charge, making it a cost-effective and valuable tool for attracting customers.

Even when utilizing SNS advertising, efficient targeting is possible with a smaller budget than with traditional advertising media. In particular, Facebook, for example, allows for the setting of detailed criteria such as age, gender, place of residence, and interests, making it possible to reach potential customers more efficiently. For small and medium-sized real estate brokers, the ability to maximize effectiveness with a limited budget is a major advantage.

(3) Potential clients can be approached

One of the great strengths of SNS is the ability to approach "potential customers" who are not currently searching for properties. Real estate portal sites are basically visited only by "people who are currently looking for a property," but with SNS, information can be delivered to those who may consider relocating or purchasing a property in the future.

By establishing continuous contact with potential customers, you can become the first real estate company they remember when they are in the process of looking for a property. Another major benefit is the ability to build relationships with users through engagement such as likes, comments, and shares. 4.

4. contribute to company branding and trust building

Real estate brokerage is a service by "people" for "people," and building relationships of trust is extremely important, so SNS can increase corporate transparency and familiarity by providing not only property information, but also company philosophy, employee personalities, and daily activities.

SNS communications are an excellent opportunity to showcase the company's values and expertise as a company, and serve to increase contact with consumers and strengthen the corporate image. Facebook and other social networking services that require registration of real names enable the transmission of highly reliable information, which directly leads to gaining the trust of customers. 5.

5. strengthening community-based marketing

For real estate brokers, especially small- and medium-sized firms, community-based marketing is extremely important, and SNSs can strengthen relationships with local communities by disseminating local information, local news, and announcing local events.

By utilizing location information and hashtags, information can be focused on specific areas, thus establishing positioning the company as a community-based real estate company. Combining local information with property information is effective for those who are considering relocating or relocating to a new area, as it makes it easier to imagine living in that area.

Characteristics of different SNSs and their suitability for real estate brokerage

When utilizing SNS for real estate brokerage, it is important to understand the characteristics of each platform and use them for different purposes. The table below summarizes the characteristics of the major SNSs and how they can be used in the real estate brokerage industry.

According to Ierabu's survey, Instagram is the number one social networking service used by real estate companies, and its ability to provide visual communication centered on photos and videos is an excellent match for the real estate brokerage business, where the appeal of properties is visually appealing.

Practical steps for utilizing SNS to improve results

1. set clear objectives and targets

Before starting SNS operation, it is essential to set clear objectives and targets. The content and evaluation indicators will vary depending on the purpose, such as whether you want to "raise awareness," "increase inquiries about properties," or "strengthen branding.

Also, by setting specific targets, such as "families in their 30s," "singles in their 20s," or "over 40s for investment purposes," it is possible to effectively communicate. It is also important to select the SNS platform to be used in accordance with the target. 2.

2. planning and preparation of posting content

Advance planning and preparation are important for effective postings. Specifically, it is a good idea to plan the following types of content to be posted:

• Property information: Introduce the features and attractions of the property with attractive photos and videos.
• Room tour video: A video showing the inside of the property to convey the actual atmosphere of the space.
• Area information: Information on the living environment, stores, and transportation access around the property
• Real estate knowledge sharing: Useful information such as mortgage loan basics and points to keep in mind when signing a contract
• Employee Profiles: Posts that showcase the personality and expertise of the person in charge
• Customer testimonials: Comments and testimonials from customers who have closed deals (privacy is important)

Be sure to provide high-quality photos and videos to convey the property's appeal to the maximum extent possible. In addition, effective use of hashtags in your postings will make them more likely to be found.

3. planning a posting schedule

It is important to establish a systematic posting schedule in order to achieve continuous results from social networking operations. Irregular posting may result in a lower algorithm rating and reduced reach to followers.

It is a good idea to post regularly, with a target of two to three times a week, on fixed days of the week and at fixed times of the day. In addition, daily information can be sent out using the real-time Stories function, etc., to increase contact with followers.

Rather than posting a large number of posts at once, posting in a planned and dispersed manner tends to work better algorithmically.

4. promoting engagement and communication

The real value of social networking lies in two-way communication. Be proactive in your communication by responding promptly to comments from followers and politely answering questions.

Also, the content of your posts should not be one-way advertisements, but rather, should be in the form of questions that encourage viewers to respond, or encourage them to "like" or comment on your posts to increase engagement. Since real estate is a particularly expensive purchase, it is important to build a relationship of trust with customers, and social networking communication is the first step in this process.

5. data analysis and improvement

To maximize the effectiveness of SNS operations, it is important to analyze the performance of posts on a regular basis and make continuous improvements. Collect and analyze data such as the number of reach, engagement rate, clicks, and inquiries for each post.

By analyzing the type of content that received the best response and the time of day when posts are most likely to reach the target audience, you can improve the effectiveness of your SNS operations by making use of this information in future postings and strategies.

Cautions and risk management when using SNS

Compliance with Legal Regulations

When using SNSs in the real estate brokerage industry, it is important to pay attention to legal regulations such as the Building Lots and Buildings Transaction Business Law and the Act Against Unjustifiable Premiums and Misleading Representations. In particular, the following points should be noted

• Prohibition of exaggerated advertisements: Prohibition of expressions that may mislead people into believing that a property is significantly better than it actually is.
• Include necessary information: Properly describe legal matters such as the type of transaction, license number, etc.
• Use of photographs: Prohibit the use of photographs that differ from the actual property
• Handling of personal information: Appropriate management of clients' personal information

Postings on social networking sites may also be considered "advertisements," so it is important to understand the relevant laws and regulations and ensure compliance.

Countermeasures against the risk of flame wars

In SNS operations, the risk of flame wars must also be considered. Inappropriate posts or problems with customers spreading through social networking sites can cause significant damage to a company's image.

To minimize the risk of flaming, it is effective to establish a system for checking posts before they are posted and to prepare a crisis management manual. Regular training is also important to ensure that all employees understand the characteristics and precautions of SNS.

Creating a system for continuous operation

The most difficult part of SNS operation is continuity. Even if started with enthusiasm, as the workload of the person in charge increases, the frequency of posting gradually declines, and the effectiveness of the operation often wanes.

For continuous operation, it is important to assign appropriate personnel and establish a workflow. If it is difficult to assign a full-time staff member, you may choose to outsource the operation to a specialized external company. According to the IELAB survey, the number one reason for not operating SNS is "No employees available to take charge" (28.8%), , so securing human resources is a major issue.

Summary: Key Points for SNS Use in the Real Estate Brokerage Industry

The following is a summary of the significance and key points of using SNS in the real estate brokerage industry:

1. Visual appeal: Intuitively convey the appeal of properties through photos and videos.
2. Cost-effectiveness: Attract customers efficiently at a low cost.
3. Reach Potential Customers: Reach people who are not currently looking for a property.
4. Builds trust: Reinforces relationships with clients by demonstrating transparency and professionalism
5. Localized marketing: Position yourself as a community-based real estate company by disseminating local information.

To succeed, it is important to clarify objectives and targets, plan posts, produce quality content, communicate interactively, analyze data, and continually improve. In addition, we must not forget to address legal regulations and countermeasures against the risk of flame wars.

SNS operations will not produce results overnight, but ongoing efforts will greatly contribute to strengthening the ability of the real estate brokerage industry to attract customers and build its brand. In the real estate market of the future, SNS will become increasingly important in attracting customers and branding.

Frequently Asked Questions

Q1: What is the optimal frequency for SNS operation?

A1: Basically, posting two to three times a week is ideal. However, it is important not only to increase the frequency of posts, but also to continuously transmit high quality content. In addition, disappearing content such as Instagram Stories can be used on a daily basis to increase contact with followers.

Q2: How should the effectiveness of SNS operations be measured?

A2: Basic KPIs include the number of followers, engagement rate (likes, comments, shares, etc.), reach, and clicks. By analyzing the correlation between these indicators and the actual number of inquiries and contracts, the effectiveness of SNS operations can be measured. Each SNS platform provides analysis tools, so we recommend that you check them regularly.

Q3: What are the advantages and disadvantages of outsourcing SNS operation?

A3: Advantages include high quality operation by professionals with expertise, saving internal resources, and responding to the latest trends and algorithms. Disadvantages include the cost of outsourcing and the possibility that it may be difficult to communicate internal realities and detailed nuances of property information. When outsourcing, it is important to communicate regularly and share internal information appropriately.

Q4: What can I do to prevent flaming on social networking sites?

A4: To prevent flaming, it is important to have a system in place to check before posting, clarify internal SNS policies, properly handle personal information, and understand and comply with legal regulations. It is also effective to prepare a response manual in advance in the event of a flameout. It is also recommended to respond calmly to inappropriate comments and consult with experts as necessary.

Q5: Which SNS should I start with?

A5: The best SNS depends on your target audience and business model, but for real estate brokerage businesses, we recommend starting with Instagram, where it is easy to convey the appeal of properties through photos and videos. If your target audience is in their 40s and 50s, Facebook is also effective. Rather than starting with multiple SNS at the same time, it is more realistic to start with one platform, accumulate operational know-how, and gradually expand.

Reference information

• Ministry of Internal Affairs and Communications "2021 Telecommunications Usage Trend Survey
• Ierabu GROUP "Survey on Usage of Portal Sites and SNS for Housing Search" (Japanese only)
• Ministry of Land, Infrastructure, Transport and Tourism "Real Estate Transaction Survey
• Japan Real Estate Institute "Real Estate Market Report
• Zenkoku Rental Housing News "Survey on the Use of SNS in the Real Estate Industry".

The use of SNS to attract real estate customers will become increasingly important in the future. If you are not already involved, please refer to this article to develop an SNS strategy for your company. If you would like to learn more about using SNS, please feel free to contact INA&Associates for more information or a free consultation. Please feel free to contact us.