First in Line: Testing a New Bidding Approach in Real Estate.
About the series:
I turn business ideas into real-world trials in less than a month. In this series, we dive into the dynamic world of product development, challenging the conventional timelines and methodologies of bringing ideas to life. Each case study is a journey through the conception, design, and execution of a product idea, all within the timeframe of just 30 days. My mission? To demystify the process of product development, test the viability of diverse business ideas rapidly, and offer invaluable insights into the realities of market response.
Overview:
Explore a novel approach in the real estate market by introducing a bidding system for property viewings. This project aims to test the feasibility and interest levels in a bid-to-view model for real estate properties.
Goal:
To assess the level of interest among potential renters and buyers in participating in a bidding system for property viewings within the Romanian real estate market.
Audience:
Individuals in the Romanian market are interested in medium-priced rental properties.
Problem:
Renters are frustrated with the fact every everytime they are interested in a specific property either is too late, or there are already few other people interested.
Scope and constraints:
Engage at least 10 participants willing to pay for priority in property viewing queues, executing this test within a one-month period.
Process:
Market and User Research:
Engage with potential customers to understand their pain points and see if anyone’s actually experiencing the same problem we’re assuming.
Find communities online where my audience spends time on:
The post above was made by me and it drove a lot of engagement, and it seems I’m not the only one, people are actually super frustrated. This is a good sign!
Hypothesis Development and Prioritization:
Market engagement hypothesis: Renters will bid on a property they are keenly interested in to secure the first viewing opportunity.
Customer engagement hypothesis: At least 10% of potential renters will be willing to bid a minimum of $10 for priority viewing if the process is simplified.
Testable hypothesis: Approximately 5% of users on OLX.ro will pay for priority if they find the property appealing.
Prototype Development:
Purchase a domain and hosting for the prototype (approx. $25 total cost).
Design in the browser – Utilize a WordPress theme for rapid prototype development ($59).
Website builder with 2500 template blocks that I can play with Implement a fake bidding system to create a sense of urgency (FOMO). This is what the landing page looks like.
https://casatale.ro/apart-2-camere/ Integrate a call-to-action (CTA) for bidding, clearly stating the $10 commitment. Also integrating a live counter to clearly state that the bidding will end soon.
Mailchimp integration to see exactly how’s willing to pay. Ensure the prototype is responsive across various devices. The majority of them are coming from their phones.
The screenshot was taken from my phone Get some analytics in place to see how many people get on the landing page.
User Acquisition and Market Testing:
Create and post a listing on OLX.ro, acting as a property owner. This is one of the largest marketplaces in Romania.
Take photos from another ad and craft an engaging listing. Picked an area of interest and a competitive renting price to attract more leads.
Clearly state that viewing appointments are scheduled through the website, starting at a $10 bid.
Pay 6$ to publish it.
Initial Results and Feedback:
Responses varied, with many opting to wait, and a few expressing dissatisfaction with the bidding concept. People got the message wrong, thinking that they need to pay to visit the apartment.
Very few inquiries. Only a handful of people. Something was wrong with the listing.
Someone messaged me saying that I would be crazy if I requested money for him to view the apartment.
Iterations and Adaptation:
Revised listing strategy to sound more standard, omitting exclusive scheduling through the website.
A notable increase in inquiries (30% more), with 7 out of 32 participants actively bidding, resulting in a whopping 21% conversion rate.
Conclusion:
Our experiment successfully validated the hypothesis that a significant portion of potential renters (21%) are willing to participate in a bidding system for priority property viewing. This initiative, conducted over four weeks, shows that you do not have to get fancy before getting validation from the market.
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