Whatsapp was just acquired by Facebook for a cool $19 billion. So what does this huge tech deal mean for real estate professionals?
This $19 billion mobile app deal makes Whatsapp worth more than real estate and finance giant Blackstone and some major cities, reportedly. Probably, more than a number of countries as well. It’s also enough to buy about half of the non-performing mortgage loans expected to go on sale this year. This isn’t just a big deal for the founders of Whatsapp, it has far more significant potential for future trends. This purchase identifies some significant indicators of what real estate investors and executives should be doing now and for the foreseeable future:
1. Facebook is here to Stay
One way or another, Facebook is here to stay. Many have argued that the social networking giant is on its way out, but in some medium or another, it isn’t likely to disappear just yet. After all, those billions can buy a lot of likes. To fully capitalize on it, real estate investors and businesses are going to need a lot more than just a profile page. Businesses should use Facebook, and every social media platform to broaden their reach and maximize their exposure.
2. 9-5 is Dead or More Important
For the ambitious, the 9-5 is clearly dead and done. The founder of Whatsapp actually found this out the hard way. He was turned down for jobs at several of today’s top tech firms, only to have his idea scooped up for $19 billion. We can only assume this figure far swamps any salary he would have asked for. Even at a fraction of that price, he would have come out far ahead. So forget working for someone else. On the other hand, it’s probably a savvy move to lock up the best talent you can before they realize a 9-5 isn’t for them either.
3. Mobile Importance
Your mobile presence is clearly important, as more consumers are using mobile devices to conduct research. It’s critical, not only from a real estate marketing perspective, but for real estate professionals to retain their freedom and flexibility and to maximize productivity. However, it is also important to note that a survey by the National Association of Realtors reveals that while close to 100% of home buyers are searching online, only around 40% were using mobile in 2013.
4. Other Methods of Communication are Vital
Email, cold calling, simple social updates and SEO have been valuable pillars of real estate marketing and communication over the last couple of years. They will continue to be too, but we’ll also see more alternative methods of communication creeping in like Snapchat, Instagram and of course Whatsapp.
5. Customer Service is Vital
Customer service is vital. Communications giants like Comcast, AT&T and Century Link may have managed pretty well over the last few years while maintaining minimum customer service levels while maximizing income. There was a perception of safety in the billion dollar circle. All they had to do was promise a little more than one of a handful of others and they could grab more market share, even with horrendous customer abuse. Now between Google Fiber for internet and future developments for Whatsapp, their days could be numbered.
6. Who Has the Cash?
There are actually many multi-billion dollar start-ups out there. As they are funded and acquired, expect to see big spikes in real estate activity and values, as well as changes in who is buying and what they are buying.
