Reputation as a Key Factor in Real Estate Decisions
In the current digital era, where reviews are just a click away, reputation has become an even more crucial factor for buyers in the real estate sector. According to a PowerReviews study, over 70% of potential buyers consult opinions and reviews before making a purchase. This shift aligns with a generational profile dominating the market.
Currently, millennials and centennials account for 66% of housing buyers in Mexico, a segment ranging from 25 to 42 years old. This group is known for their high connectivity and trust in online information, as per the international certifier Best Place to Live.
Tomás Cartagena, founder and CEO of Best Place to Live, stated: “Location and amenities are no longer enough; the reputation built daily by those who have already purchased or reside in these spaces is key.”
Transparency and Trust through Ratings
To address this demand for greater transparency, Best Place to Live introduced a real estate rating system complementing their certification scheme.
This system ranks companies on a scale from one to five stars based on customer satisfaction regarding the purchase, delivery, post-sale, housing, development, and amenities of recent projects.
Laura Molina, operations and product director at Best Place to Live, explained: “We’ve observed that preference for certified developers results in sales increases of 20 to 40% across various Latin American countries. While certification is a significant differentiator, people requested more company information. This led to the creation of the rating system.”
Companies achieving four or five stars are highly rated, and according to Best Place to Live, they see sales increases of up to 30% compared to lower-rated companies.
Increased Profitability
The impact extends beyond the volume of sales. Middle to high-end projects by well-rated developers can reach prices up to 12% higher per square meter than the area’s average, as buyers are willing to pay more for the assurance provided by validated customer reputation.
For young consumers who review ratings on digital platforms and compare before deciding, a company’s reputation equates to security. Consequently, trust has become a valuable intangible asset for developers.
Tomás Cartagena, founder and CEO of Best Place to Live, reiterated: “The real estate rating rewards transparency, genuine satisfaction, and directly impacts consumer perception, leading to increased sales.”
Currently, five Mexican real estate developers (Grupo Sadasi, Grupo Urbania, Simetric, Tierra y Armonía, and Ficade) are certified by Best Place to Live. Together, they offer over 100 projects for sale across various Mexican states.
Key Questions and Answers
- What is the significance of reputation in real estate? Reputation plays a crucial role in buyers’ decisions, especially with the rise of digital platforms where reviews are easily accessible.
- How does Best Place to Live address this demand for transparency? They introduced a real estate rating system that complements their certification scheme, ranking companies based on customer satisfaction.
- What are the benefits of having a high real estate rating? Companies with four or five stars see sales increases of up to 30% compared to lower-rated companies.
- How does reputation impact pricing in the real estate market? Buyers are willing to pay more for assurance provided by validated customer reputation, leading to higher prices per square meter.
- Which Mexican real estate developers are certified by Best Place to Live? Grupo Sadasi, Grupo Urbania, Simetric, Tierra y Armonía, and Ficade.
