In the previous article, we have explained the main characteristics of SWOT analysis applied to the real estate sector and the ways a real estate could use in order to get good results for the business.
Starting form this model, I will expose, in a general and illustrative way, some examples of the applicability of the model to a real estate.
We should not forgive the scheme of implementing the SWOT analysis in a real estate:
Internal analysis of the real estate.
- Strengths (positive points).
- Weaknesses (negative points).
External analysis of the real estate.
- Opportunities (positive factors).
- Threats (negative factors).
Internal SWOT analysis of the real estate.
Real estate strengths.
Strengths – Example 1.
A real estate´s main strength is its real estate team. The individual part of each member is the source from where the level of competence of the entire team evolves. In other words, a real estate that counts with a professional real estate team will always achieve its objectives, while a real estate with non-qualified real estate agents will receive difficulties.
The members of a productive real estate team are those that bring good levels of assertiveness, proactivity and resilience. In the same time, regarding the qualification and competence, this is also applied to the leader of the real estate and other members who occupy jobs related to responsibilities.
It is so simple- there is no real estate team that could be effective or productive if it not led by a qualified and competent person.
On the other hand, both the leader and the manager of the real estate team should become models of organizational references and they should reflect very high levels of resilience, assertiveness and proactivity.
Strengths – Example 2.
The capacity of adaptability to changes is one of the biggest strengths that a real estate could count on. It is also true that generally, we can detect a high level of conscience in the necessity of reloading inside this sector, although there are some people slower than others and they do not understand this as a critical and survival aspect in this business.
The real estate that does not take into consideration the necessity of adapting to changes as a very important aspect might get to very low levels of productivity which will lead the real estate to a huge business failure. Nowadays, the changes inside a real estate sector have received a dizzying rhythm.
There are constant changes in the real estate sector on different levels: new fiscal and legal laws, modifications in the potential clients´ behavior, markets that today are working and tomorrow might collapse, devalued currencies and closed markets, all these are consequences of the political instabilities of the region.
We should add the endless variables that might create radical changes in the real estate sector.
Weaknesses of the real estate.
Weaknesses – Example 1.
The lack of training in the real estate sector is probably one of its mostly-known weaknesses and we are not referring here to the lack of education, but to the well-known scarcities in the development of individual abilities.
We here remind of the individual lacks inside the real estate which will be another element that affects the real estate in a negative way.
When we refer to the collective performance or to the productivity of the whole real estate team, we should never forget that everything starts from the individual level and every time, no matter the way, the individual parts of each of us will affect the collective performance affecting it.
In the real estate sector, it is frequent to find companies that pretend alleviate those lacks of training trying the self-training, although this is not sufficient, because self-training might partially alleviate those lacks but they will never solve them for the whole collective.
Weaknesses – Example 2.
The absence of the real estate leader and the competencies that are not well implemented are pure weaknesses for the whole real estate.
The figure of the leader should be created according to the necessities and limitations of the real estate, considering the importance of an organization pyramid which determines the competencies and responsibilities inside the company.
The figure of the real estate leader should not be related only with the owners of the real estate, although we know there is a high trend to do that inside a small and medium real estate in Spain.
This has an explication based on its economic limitations of the training of all the responsible persons in the company.
Anyway, it is highly important that the figure of the real leader in a real estate not to be assigned to a non-qualified or competent individual.
External SWOT analysis of the real estate.
Opportunities for the real estate.
Opportunities – Example 1.
If correctly used, new technologies could result into an excellent opportunity of development for any real estate. Among the new technologies that a real estate might use in order to increase its productivity, we can find the management programs as CRM to new personal communication systems.
A CRM for real estate might become an opportunity to increase the level of productivity of the real estate.
The new technological elements might also influence the individual productivity of it. Also the use of professional programs for computers could increase the productivity of the members of the real estate. But for all these, a minimum level of knowledge and training in typing is needed.
A real estate might count with the best CRM on the market, last generation computers and a good connection of Internet, but if the members of the real estate type badly, it is better to invest in their training.
This technology might be achieved by the real estate, but if the members of the company do not have any knowledge of its use, the productivity level will be low for sure.
The new technologies are a good tool for any real estate. In order to get high levels of productivity a specific training is needed.
Opportunities – Example 2.
The new ways of communication through Internet open a long list of possibilities for the real estate: starting with the social networks up to the new systems of communication. These are all development opportunities for the real estate.
Regarding the marketing level, there was never before so simple to achieve a brand development for a real estate. For example, for the adding of social media marketing for the real estate Branding, the actual real estate uses a huge number (millions) of potential clients.
The range of the Internet nowadays is unimaginable and the limits the real estate will have are those that it imposes.
If a real estate in Spain decides to open a new market to achieve potential clients, it needs only to plan a geographic strategy on Internet and start to find more clients who might be kilometers far from their main office.
Internet has changed the play rule and highlighted the necessity to introduce new strategies. The real estate which knows how to benefit from it will win in a really effective way. Nowadays, for a real estate its webpage, real estate blog and its social media are its main values.
The real estate that does not understand the importance of the Internet nowadays for our personal lives is taken out from the game, because in a way or another, the new technologies have marked a huge difference in the communication and of this century.
Threats for the real estate.
Threats – Example 1.
The non-regulation of the real estate market in Spain could be seen as a threat because the lack of economic regulation damages the professionalism of this sector.
In the same time, the lack of regulation of the real estate sector in Spain is converted in opportunities for others, especially for the persons that benefit from the profit generated by the opportunity.
There are also specific situations in which the real estate has a profit from the lack of regulations, when it includes non-qualified persons in its team.
This is not a heritage of the real estate sector in Spain, because there are many countries of the UE that does not count with a legal regulating frame for the practice of a profession inside a real estate sector.
On the other hand, the lack of regulation of the real estate sector in Spain (and any other country) brings another negative factor- the suspicion of the possible buyer clients.
Threats – Example 2.
A threat frequently detected in the real estate sector is the lack of standard criteria from the real estate portals, especially the international one.
Right from the beginning, each real estate portal has the right to implement a particular management system, the most effective one or one that attends better to the business´ necessities.
The problem comes from the lack of a standard in the management of the real estate portals.
For the international real estate, the lack of a standard management of the portals is a threat because it negatively affects its organizational resources.
When the processes of management are different (and here we refer to the real estate portals) this means that the person in charge of advertising the properties on the portals might confront with a series of difficulties at the practical level.
When the processes of management are so different and each counts with its particular characteristics, this brings as consequence the fact that the person in charge of the advertising should use the time differently.
This damages the person´s time management. A standard has as goal to simplify the processes.
When we speak of managing a high number of real estate portals with different systems, this might become a negative loss of resources for any real estate.