What Does The Democratization Of Real Estate Mean For San Diego?
Upcoming changes may alter the U.S. real estate and finance markets significantly in 2014. In fact, they appear to hold the potential to change the economic landscape as we know it. Those San Diego real estate investors, agents and lenders that understand what is happening will be able to lead in their respective fields. Those that fail to change and fail to embrace new trends may regret it. Shopify is referring to new trends in shopping as the “democratization of retail.” Similarly, those building the new barrage of crowdfunding platforms for property projects are declaring a “democratization of real estate.” If these shifts are really that big, some may look back on the first half of 2014 as the “Real Estate Spring.” So what is going on? Who will be the winners and losers? More importantly, how can Southern California Realtors and investors position themselves to come out on top? Retail Trends for 2014 According to Shopify, there are three main retail shifts in the works. These three trends may not be major news to everyone, but few may be really considering how they are positioning themselves to lead in these areas. The first trend appears to be great news for smaller San Diego real estate companies, and helps to level the playing field. Points two and three really merge together into the need to provide more options. Some will shop for homes to buy or services to help them sell online first, while others will put boots on the ground and then pull the trigger online. The more options, cross over points, and personalization, the higher real estate professionals ought to see their conversion rates. Some examples of this may include: highly responsive web assets, broader social media presences, mobile apps, augmented reality applications, and for some re-embracing offline and in person marketing and networking. The Democratization of Real Estate Some are referring to the new uprising of real estate crowdfunding platforms as the “democratization of real estate.” It’s being called this because it is allowing more real estate investors to break through barriers and do much larger deals, enabling many more innovative projects to be launched, and allowing more individuals to invest in real estate. Crowdfunding can indeed make flipping high end houses, developing ranch property and improving multifamily apartments easier for many investors. This could certainly mean some substantial redistribution of wealth and a big boost for the wider economy, not just in San Diego County. This should all be very encouraging for SoCal real estate pros, but it also means many have plenty of homework to do over the next few weeks. Even if some new trends don’t fit with a company or investor’s model or personality, they at least must educate themselves to it and know how to position themselves. Know what the competition is up to, recognize how you can stand out, and how to explain the benefits of that to your customers.