The real estate world has rapidly evolved, with new agents harnessing the power of digital marketing and social media to sell properties impressively. Developer marketing machines are in full swing, flooding our feeds with bright images and promises of luxury. However, at Wise Group, we believe it’s time for a call to consciousness: Are agents truly analyzing the fundamentals of real estate investment, or are they getting swept away by advertising?
This isn’t about criticizing anyone. Instead, we invite our colleagues in the industry and investors to reflect. The role of a real estate advisor is not just to sell an attractive product visually but also to deeply understand the market and guide investors in making intelligent decisions. Therefore, we will address not only the impact of marketing in this business but also the questions every investor should ask their advisor before entrusting them with a significant investment.
The Power of Marketing: Tool or Trap?
We cannot deny that digital marketing has revolutionized the real estate business. Developers have created campaigns so powerful that even real estate agents can become captivated by what they see, forgetting to conduct a deeper analysis of the product. Of course, marketing has been a great ally for new agents who know how to handle social media and create a polished image.
But here’s the problem: many agents, especially younger ones, are blinded by developer marketing and forget their responsibility to advise their clients informedly. Instead of analyzing the market and the actual profitability of the investment, they simply repeat the slogans and promises of the developer. This is not only dangerous for the client but, in the long run, affects the credibility of the agent.
A Call to Consciousness: The Role of the Agent as an Advisor
As real estate agents, we must remember that our job is not merely to sell properties; it is to advise our clients to make intelligent, informed decisions. We must go beyond marketing campaigns and conduct a thorough analysis of each investment we recommend. This is where consciousness comes into play: Are we selling because we believe in the value of the product, or are we being swayed by the allure of an advertising campaign?
It is our responsibility to act as strategists. Instead of getting carried away by aesthetics, we must focus on analyzing:
Market Cycles: What phase of the real estate cycle is the property we are promoting in?
Profitability and Return: Is this a property with good returns for our clients?
Value Proposition: What makes this investment different and attractive compared to other options?
Investors: Conduct Your Due Diligence with Your Advisor
And for investors, this call to consciousness is also for you. In a market filled with agents who impeccably manage their social media and sell properties through spectacular campaigns, it is essential to conduct your due diligence before choosing an advisor. Not all real estate agents have the experience or knowledge necessary to guide you toward a successful investment.
Here’s a list of key questions you should ask your real estate advisor to verify their level of experience and understanding of the market:
Key Questions for Your Due Diligence:
1. How long have you been working in the real estate market? This question is essential to understand the advisor’s experience. While youth does not necessarily mean inexperience, time in the market allows the advisor to have witnessed various market cycles and possess a broader perspective.
2. How many transactions have you managed in the past year, and in which areas? Ask about their recent sales and the areas in which they have worked. This will give you an idea of their level of activity and whether they have experience in the area you are interested in investing.
3. What projections do you have for the behavior of this area in the next five years? A good advisor should be aware of market trends and future projections. If they only respond with what is happening today without showing a long-term growth vision, it may indicate they are not conducting a deep analysis.
4. How do you calculate the return on investment (ROI) for this property? An informed advisor should be able to explain clearly, with numbers, the expected ROI of the investment, based on real data from rentals, appreciation, and operating expenses.
5. How do you identify the market cycle we are in? The real estate market goes through cycles of expansion, stabilization, correction, and recovery. Your advisor should know the phase the property you are being offered is in and how it affects your investment.
6. What are the risks of investing in this project? No investment is without risks, and a good advisor will be honest with you about the potential risks of the property they are recommending. If they avoid discussing risks and only mention positives, they may not be entirely transparent.
7.What value proposition does this property offer compared to others in the same area? It’s important that your advisor can highlight the competitive advantages of the property you are considering. Why is this option better than others in the same area? If they cannot provide a clear answer, you may be looking at a property that is overhyped by marketing.
The Importance of Transparency
At Wise Group, we firmly believe that the role of a real estate advisor must be transparent and strategic. Our mission is not just to sell properties but to guide our clients to invest informatively and with a clear understanding of what they are acquiring. If investors begin to demand this level of professionalism, and real estate agents commit to providing honest and well-founded advice, the entire market will benefit.
Conclusion: Awakening Consciousness in the Real Estate World
The real estate business has evolved, but we must not lose sight of what is essential: the real value of an investment lies not in the marketing campaign but in the fundamentals that support it. We invite real estate agents to be more conscious of their role as advisors, not just sellers, and for investors to ask questions and ensure they are working with someone who truly understands the market.
Remember, real estate investment is an important decision. Don’t be swayed solely by what you see on social media. Take the time to conduct thorough due diligence and choose an advisor who offers you more than a pretty presentation. Because in the end, the success of your investment depends as much on the product as on the right guidance.
