Industry stat resources

anybody have statistics on how video has helped increase % closing vs expired listings, decrease days on market, increased commission %??  things of that nature?

 A recent stat came out via Inman Connect that 79% of homeowners are more likely to list a property with an agent that uses full motion video, yet only 1% of agents are recorded as using it consistently.

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Doug Heddings of the Heddings Property Group

 Hey Christian,

I get that you have limited time, and as a small business owner, I really GET that.  I barely have enough time to eat irregularly, let alone engage in luxuries like sleeping.

Having said that, I'd like to just suggest that, of all the things you can devote time to, helping videographers out with data to help us sell is among the most lucrative ones.  Maybe the most lucrative one.  I just did a very long search trying to find the Inman research, and couldn't find it, and that's disappointing. I can USE that in my marketing.  And as I add more clients, some of them will open Wellcomemat accounts.  Multiply me by all the videographers on here and ... well ... it seems to me that a bit of time devoted to gathering and publishing these stats might result in major dollars for you.

Just a thought.  Hope it resonates with you ;-).

 It definitely does resignate with us Stuart. We have some things that we are working on that should help the entire industry forward. Info and communication of value--both for video and WellcomeMat--is what we just hired Rudy Bachraty for. Announcement of his position with WellcomeMat found here: http://blog.wellcomemat.com/announcing-rudy-bachraty-chief-educator

Stuart...in a lot of ways, we are doubling and tripling down in terms of our investment in connecting video pros with agents, brokers and brands. You'll see these steps coming to fruition...

Stuart:  For whatever it's worth, in the 6+ years  I've been doing real estate video, I've had exactly ONE person ask me about stats of any kind.  ONE.  And it was at a real estate convention full of agents about 5 years ago at Inman Connect.

I have never, NOT ONCE, been asked about stats in any way, shape or form from any agent, present customer or future customer.  Never.  I get inquiries, phone calls and emails DAILY from brand new customers who have never used me before, and it still is never, ever asked.  Ever.

I know it SHOULD matter to people, and I'm always curious about it myself, but it really is a non issue.  I spoke with someone who runs another video hosting site and he says the same thing - everybody THINKS it is a big deal, but nobody ever really asks that question....  they don't seem to care!

As far as the stats above, I believe those stats came from the NAR, not Inman.  I'm sure you can Google the source somewhere...

I get asked occasionally, that's why I brought it up.   Agents don't know to think of video as a source of lead generation or that it can help sell a home faster or that it may help from having the listing die on the vine.  In general, they think of it as a virtual tour or a picture...just something so the viewer can see the house...a requirement of the MLS.   They just don't know what they don't know.

It is our job to educate them. To let them know that video is much more than just a fancy VT.

 I've just found that 'educating" them is a complete waste of time....   Either they "get it" or they don't.  Black and white.  I've spent HOURS "educating" agents who have and will never do business with me.  That's why I stopped marketing directly to agents years ago.... it's just a complete waste.  

Just l ike some agents saw the internet one day and instantly understood why THEIR business needed to be online- and they got a website.  The others?  15+ years after the internet became commercial, 50% of realtors STILL don't have their own website and it's a proven fact that 90% of buyers and sellers start their search online.  Insane?  Of course!  Again, they also... DON'T GET IT.  And never, ever will.  

I get asked to talk to real estate offices at their sales meeting and I decline...  because it just DOESN'T work. (happened this morning in fact!)

Literally 5%... maybe 10% of realtors will bite on video....  Those are pretty small odds unfortunately.  That's why marketing to Realtors where 90% will NEVER use you... makes no sense (to me anyway).  

I get my products OUT THERE so those 5% who DO get it... see it.  The only conversations I have are about scheduling!  No selling.  No stats. No justification.  And I get new customers literally every single day these days...  They find ME.  Social media is a wonderful thing.  Use it.

 Somewhere right in the middle of this debate is the truth. To Fred's point, WellcomeMat's team really had to stop "educating" and start focusing on those that did get it--it was probably the best move we ever made. We simply could not be on another panel or speak to another group of people that were never going to take action: it was literally killing the spirit of our team and our vision for what we wanted to accomplish with WellcomeMat.

Now, we are still focused on celebrating those that are successful with video, and WellcomeMat, rather than educating those that really aren't wanting to be taught. We are educating, but we are focused on helping those that do get it to do a better job and take a leadership position. 

Where I differ from Fred is that our team believes that video will be as pervasive as photos are today. This is because we think there is no way that it will remain a secret that video is the most powerful form of real estate marketing. The agents that do a lot of transactions will leverage video to do a lot more transactions. Those that don't face a very rough future.

 Fred:  Thanks for the response.  Let me first agree with you on a few things.  I believe that some realtors will simply never get sales and marketing at all -- regardless of the media they use.  I've talked to many brokers who agree.  No matter how they try to teach their agents how to be successful, many will never learn.  Frankly, some are really not working at all.  They sell a house or so per year, and they're fine with that sort of dabbling.  Presumably, there's a spouse with an income, so, to them, being a realtor is about having something to say other than "homemaker" when asked at parties what they do.

Now for the disagreement.  As we've discussed before, Fred, my market is not much like yours, nor is my approach to the business.  I'm quite sure your approach works, and I'm now very sure mine does to, and for the same reasons:  we're both growing, perhaps too rapidly (at least in my case).  Somewhere around 90% of the realtors in my city have college degrees, and it's probably 99% for sellers and buyers.  I have three reasons for wanting as many stats as I can get:  (1)  I get asked quite a bit; (2) I'm in the process of hiring a sales/marketing team that wants those numbers; and (3) I'm in the process of selling a near-six-figure series of training videos to the internal "university" of one of the country's largest real estate firms.  THOSE people want numbers to justify the ROI.

So, I'm not manufacturing a need, here, Fred.  I really do have one.

Christian, to your point, I think we agree.  My sense of this is that there is a short window of opportunity, here, for smart realtors.  Get on board now, and you will increase your sales performance and your listings, thereby increasing future market reach tremendously through referrals and, in some cases, through having your video personna all over the internet.  Wait too late, and you will be buying real estate videos because they're table stakes, and everyone else is doing it.  Move now, and you get significant ROI. Move too late, and you simply have increased your expenses, reducing your income.

When that happens, I'll open a sub-brand of my current business to focus on producing the lowest-cost videos, because there will be a lot of realtors out there desperate for low-cost, low-quality video just to satisfy listers who demand video.

Maybe we are approaching this all wrong.  Agents seem to be skeptical that video generates leads and/or sell homes faster.  Right now it's  anecdotal and hypothetical.   No matter how logical an argument one makes, it  seems to be too much of a leap for many to make.

I think what they can wrap their brains around is that video is a way from them to truly substantiate their value.  Show themselves as a premium service provider.  Not only justify their 6% commission, but perhaps 3.5%/2.5% split.  Or even...dare I say...6.5% commission.  The competition to get a listing is fierce and they need some tools to help distinguish themselves from others... we'v heard the stat from NAR  80% of sellers would list if agents offered video, yet only 1% do.  The lead generation aspect of video is a close second in importance and until there are some real stats, it propably will remain a secondary arguement. 

John:  Most of my regular customers (and I have many who use me for almost EVERY listing, regardless of price) would agree that the #1 benefit is NOT about selling the house, but about selling the agent, standing out from the competition and justifying their commission.  

Most people choose to work with people they know, like and trust.  An agent on camera goes a VERY long way in establishing that likeability way before a potential client meets the agent - and there is a huge amount of value there.  One of my customers last week told me that his being on camera for a brief intro to a house tour is THE #1 reason he does videos.

Why?  

At open houses, and even on listing appointments, there is a wall that is put up immediately by prospective customers. Most people don't want to be "sold"...  so there's a certain amount of dancing around and getting comfortable with one another before the agent can truly start to understand the customer's needs and the customer starts to feel comfortable about opening up to a sales person, etc.  At an open house so many people just come in and want to look around - sometimes they try and avoid the agent and even avoiding eye contact,  because they don't want a "house salesman" breathing down their back.

Dave said that his very brief appearance on these videos changes all that!  People come to an open house, see him, and immediately walk toward him, putting out their hand and saying "You're the guy in the video!".  WALL DOWN.  It's that easy!

Same is true on a listing appointment... people already are comfortable with him and feel like they know him.  It makes getting new clients SO much easier.

That's why he uses me for every listing and that's why he appears on camera for a brief intro, and that's WAY more valuable to him than anything else.  Allowing potential customers to get to know you and feel comfortable with you without ever meeting them?  Priceless, if you're in sales!

The reality is..... a house will sell if it's priced right.  Period.  The end.  Video can help speed up that process, but in the end, if it's priced correctly, it WILL sell.  And if a house is overpriced, generally speaking, no amount of fabulous and over the top marketing is going to sell it.

Most Realtors know that.  And that's why many agents don't do video because they're looking at video from only ONE perspective ...  selling one particular house.  So the cost of video and the value of that cash outlay is based solely on the commission they will receive on that specific house when it sells, as well as the potential loss they will incur if it doesn't sell.

 It really IS (and always has been) about price.  But video helps in so many OTHER ways which are very easily quantified.  And most agents just don't get THAT part!  

My point exactly!   Very well said.  If I might just add.  Yes price ultimately sells the home however, advertising of one form or another gets it found. 

I like the agent branding angle

 I agree that anything will sell if it's priced right.  But you can say this of any commodity, yet businesses still advertise.  Either they're all crazy and wasteful, or advertising is actually useful.  Having cut my teeth in advertising -- including advertising in moving images (television/video), I can tell you that the marketing departments of the world's largest corporations firmly believe that advertising (in most industries) increases not only the volume of sales, but also the prices one can charge.

Walk down the aisle of your local grocery store and into the candy section.  In most modern supermarkets, you'll find the old standby chocolate bars -- plus a few premium brands like Godiva, Dagoba, and the like that are priced significantly higher than the old standbys.  If you haven't tried any of these chocolates, you're quite likely to think the ones with the better, more expensive looking packaging are the better, tastier chocolates.  They may be.  They may not be.  But you may pony up the big bucks to buy the expensive chocolates, anyway, because you have it in your head that they're "better."  Where I grew up, Coca-Cola was what you served your guests in the parlor, and Pepsi was what you served the hired help from the back door.  Was Coke better than Pepsi?  Not to many people.  Did it sell for less than Coke at the time?  Yep. Why?  Branding, supported by advertising.

 I consulted to a large supermarket chain many years ago that decided to package its store brands in more attractive wrappings.  The first year, it increased its profits on canned vegetables by almost 23%.  The more upscale packaging increased both volume and average price per unit.

Do these advertising techniques work in the real estate market?  I don't have the stats to prove it, but anecdotal evidence is now pointing me overwhelmingly toward a "yes" answer.  Here are some examples of video marketing:

1.  A luxury home listing at $1.7 million sold in a week to an out-of-town buyer, even though the luxury home market was and is (still) quite soft.

2. An entry-level home with only 925 square feet, priced 15% above comps in the area, sold in three weeks with competing offers.  The home was in better condition, generally, than its neighbors, and had green upgrades, but it sold for asking price in a market with plenty of inventory priced at significantly less per square foot.

3.  A mountain home that had been on the market for many months was relisted, and sold within two weeks for near asking price to an out-of-town couple who hadn't even considered a mountain home before viewing the video.

4.  An outdated condo priced slightly above the market sold for asking price in 50% of the average time on market.

The $64,000 question, of course, is "why"?  I reserve the right to change my opinion as more data come in, but at this point, all the evidence seems to be pointing to the way the video is done.  I don't believe that it's video tours that are the selling point.  What can you find out from a video tour that yoiu can't find out from viewing photos?  A few things, of course, like how the home is put together. But to me, the real power of moving images is in their ability to affect the emotions and trigger the impuse to buy.  Video tours rarely do that.  Good avertising almost always does.

My current recommendation to buyers is to include a video tour of the home, of course, but only after you've captured images and/or voice over to sell the quality of life in the home.  If you have a swing in the shade, sell that.  Sell the view.  Sell the sunrise or sunset.  Sell the child-wonder features in the back yard that will delight the children.  Sell the serenity of a nook with a waterfall.  Sell the potential buyer on how wonderful it would be to live in that house, whether that's about the schools, proximity to great entertainment, shade trees in the yard, a superbly equipped laundry room or kitchen, or what have you.  When you do that, use camera techniques that scream "quality," because they scream "feature film."  Use a voice-over with the cadence, timber, and dynamic range that screams "professional."  Package your home like fine chocolate.

So far, this has been workiing extremely well.  Is my experience an anomoly?  Maybe.  But if so, it's an anomoly that keeps delivering.  Eventually, there are so many examples that mere luck no longer explains things very well.  I've pretty much reached that point, now, and am pretty well satisfied that superior advertising techniques work in real estate the same way they work in most other industries.

Of course, this is extrremely useful for client stickiness, but not for making the initial sale to a realtor (at least in most cases).  My initial sales are usually made on a strict ROI basis, linked to risk/reward partnership with the realtor.  If the realtor believes he/she can improve batting average on closing in listing presentations by using video, the rest tends to fall into place.  At least, that's been my experience so far.  We'll see if it holds up.

I agree with everything you said.  EXCEPT, none apply to real estate.

Whatever makes "sense" in the real world and whatever is "logical" in the real world does NOT translate into what makes sense or is logical when dealing with Realtors.  They are a different breed.  And they are most often your customer - not the seller and not the broker, but individual listing agents - and they're the ones who pay the bill.  I've worked with Realtors in online marketing for nearly 20 years and I still scratch my head because nothing makes logical sense in this industry.

Maybe your Realtors out there are different than those out here or those pretty much everywhere else in the world.  I get calls and emails from videographers from all over the world at least 5 times a week or more, and they virtually ALL have the same question: "How do I sell video to Realtors?"    

It's probably THE number one problem that most people encounter.  Take any logical business sense out of the equation, because for most Realtors it just doesn't apply.  My belief is that most Realtors do NOT come from a business background.... many used to be housewives, nurses, Mary Kay salespeople, dump truck drivers, cab drivers, yoga instructors and the unemployed....  And yet they come into their own BUSINESS without a business plan, a marketing plan, working capitol OR a mindset for how to successfully run a small business.  I'll guarantee you that 99% of Realtors have less than $5000 to their name the day they start in business.  I know many that have less than $1000.  They're set up for failure from day one, and most never get out of that hole.

I could tell you success stories for a month straight if you want...... I know it works, but I also know that most Realtors DON'T get it and most Realtors WON'T spend big bucks - even those who DO get it.  This is why I stopped direclty marketing to Realtors many years ago - it's been a complete waste of time.

 *shrug*  Don't know what to tell you, Fred.  I'm busier than I can keep up with.  I can't even take on new realtors at this stage of the game because I don't have time to handle their listings.  And if your website really does have the correct fees that you charge, I'm averaging 2 to 3 times as much per listing as what you charge.  It's working for me, so you'll just have to excuse me if I take my own advice on this.

As I've said to you many times, you clearly have a business model that works for you.  I now have one that clearly works for me.  When I explain how it works for me, perhaps it will work for others on this board.  And perhaps not.  But I don't believe I've ever called you to ask how to sell video to realtors.  I'm not having a problem doing that.  

 Hey man....  if you can get it, you're busy and you're making $$$, go for it!  Maybe your market is different than mine is....

What's your website URL?  How much are you charging?  Do you have videos up somewhere?  Your WellcomeMat site only has two...

 I didn't realize that my channel only had two videos until now, but that's because I put the sold ones on the inactive list.  The mountain one will soon go there when it closes (if it closes, of course).  As for the other business details ... well, I may franchise some day.  You never know.  So some things I think I'll keep to myself ;-).

My website is actually focused on corporate video at the moment, so it wouldn't do you much good.  I'm changing it to include more emphasis on real estate, but I think the long-term strategy is to spin that business off with a new name.  The corporate work is much higher end, and it usually doesn't pay to muddy up the brand like that.