While continual developments in technology have increased the efficiency of many businesses, it has also had a massive impact on the way property transactions are conducted globally (Kutama, 2013(a)). With the amount of processes involved in property transactions, falling property prices and unrealistic sellers and buyers, currently property companies have to work harder than ever before (Kutama, 2013(a)). Kutama (2013(a)) argues that this does not have to be the case. With the right systems and processes in place, success is possible and businesses can thrive.
The researcher agrees with the above statement by Kutama (2013(a)) in terms of how technology can enable quicker and efficient work processes. Delays in certain circumstances of the development sector are inevitable, however a developer can possibly avoid some of these by incorporating the correct technological systems, which are designed to cope with mishaps or delays, in their business practice.
Specifically, these systems can assist developers with development projects, timeframes, transfers, bond registrations and the closing of contracts.
The use of social media, as discussed in Chapter 2, is another aspect of technology used to assist residential developers and real estate agents with marketing and
advertisement of completed residential development projects. The theory that the internet makes life easier and simpler has finally gained momentum (Kutama, 2013).
The internet is a means of communicating information and it improves the ability of the markets to change, as supply and demand change (McKenzie et al., 2011). As more data becomes available on the internet, the traditional roles of real estate professionals and developers are changing. With a few clicks on a search engine, consumers can find nearly all of the properties currently offered for sale, estimate market prices and find sites informing people step by step how to buy, finance or sell a home (McKenzie et al., 2011).
Social networking is further aspect, which has impacted on how business is conducted. Some top companies are utilising social media sites such as Twitter, Facebook and LinkedIn, while some brokers have noted that they receive business leads from these sites (Kutama, 2013). The immediacy of social media means that customers expect to know as soon as a new property goes on the market, and many will follow Twitter, Facebook and RSS feeds of various agents to snap up the best properties as soon as they come onto the market (Ross, 2013). By utilising social media platforms, property developers can instantly make potential buyers aware of new and upcoming residential developments in certain areas by using photo and video sharing to enhance listings, along with professional networking sites (Swallow, 2010).
It is important for residential property developers to create business websites for buyers and real estate agents to be aware of their business, and for them to be able to view newly completed and future development projects. An effective online
presence can be a great marketing tool. Ross (2013) mentions that there should be sharing icons on these websites which make it possible for people to share information about properties. This assists with search engine optimisation (SEO), builds an online profile and encourages buyers onto the next stage of purchase (Ross, 2013). Sharing high quality photos and videos of properties online through various social media channels attracts buyers and offers them the opportunity to share with and recommend links to their friends (Swallow, 2010; Ross, 2013).
Personal recommendation is one of the most valuable forms of marketing, especially if it is from a trusted friend or expert (Ross, 2013).
Property developers have to take into consideration that potential buyers also look at social media for independent reviews (Ross, 2013). Obtaining coverage and reviews on established channels will ensure their content is shared with a vast, highly engaged audience. A good aspect of the social media platform that Ross (2013) highlights is the mere fact that potential buyers will share property details and ask their family and friends what they think too. They will talk about what they like and dislike very openly on social media sites – so property developers are advised to make sure they are part of that conversation and can positively influence and contribute to those discussions (Ross, 2013). The primary role of real estate professionals and residential developers is evolving. Buyers and sellers will be more knowledgeable than in the past, but often will still need real estate professionals for advice on current trends and issues at that particular location and on listing or buying alternatives, for transaction negotiations and to handle the time-consuming follow-up, needed to close a real estate transaction (McKenzie et al., 2011).
Another excellent point that Ross (2013) makes is that unlike a website, which is an information delivery channel, social media (i.e. anywhere where consumers can interact with, share and provide feedback on content online) also offers the opportunity to interact with customers in a two-way discourse. This possibly helps residential property developers to conduct free market research into customer trends and find out what people are saying to their friends about properties and locations (Ross, 2013). Social media also (for those who are savvy and use social media well) allows developers to set themselves above their competitors in the quality and immediacy of their customer service (Ross, 2013).
Mobile phone communication is another part of technology that can be effectively utilised. According to Kutama (2013) the way forward is to tap into mobile internet users. Kutama (2013) refers to The Internet Access in South Africa 2012 study conducted by World Wide Worx, headed by Arthur Goldstuck. This study indicates that broadband access in South Africa has more than doubled between 2011 and 2012 as mobile operators have cut the cost of data and network rollout has accelerated (Kutama, 2013). World Wide Worx found that the total number of mobile broadband subscriptions is presently outnumbering fixed line broadband subscriptions by eight to one in South Africa (Kutama, 2013). The study also shows that internet penetration in South Africa is approaching 20% and for the first time, the mass market is embracing digital tools on their phones (Kutama, 2013).
All of the above statements made by Swallow (2010), Kutama (2013) and Ross (2013) prove how important technology and social media have become in the development sector. Possibly one of the greatest advances in technology, is
Wireless Fidelity (Wi-Fi) which enables internet connectivity on a global scale. This facilitates dialogue between a residential developer, real estate agents and potential buyers. Customer preferences can be gauged in this manner. As an effective tool facilitating communication, it provides a residential developer with an advantage over other developers, as it accelerates the rate of business, saves time and allows the developer to maintain a good a relationship with the customer. Networking, as a specific form of business communication, enables the developer to stay in contact with customers after a transaction and promote customer satisfaction.