Internet-savvy real estate agents have an advantage over their off-line or Web 1.0 competitors with increased decision-making capabilities and faster implementation. And we all know better informed and faster decisions equate to more sales and commissions.

I want to tell you about an intriguing concept I stumbled upon while observing our current presidential race and then I’ll show you how it relates to Web 2.0-savvy real estate marketers.

Barack Obama is considered by far the top candidate and expected to easily win the 2008 political race. But, if you glance at the polls, McCain is running neck-and-neck with Obama. What gives? Many attribute McCain’s ability to keep up with his seemingly more favored opponent to quick response to Obama’s initiatives. In most cases, even before Obama’s plans are set into motion, McCain’s already setting up a counter-attack. McCain has cracked into Obama’s OODA Loop.

Wait one minute—“What’s an OODA Loop and how does it relate to real estate?” you ask? First things first…

The OODA Loop, often called Boyd’s Cycle, is a creation of Colonel John Boyd, USAF (Ret.). Colonel Boyd was a student of tactical operations and observed a similarity in many battles and campaigns. He noted that in many of the engagements, one side presented the other with a series of unexpected and threatening situations with which they had not been able to keep pace. The slower side was eventually defeated. What Col. Boyd observed was the fact that conflicts are time competitive.

According to Boyd’s theory, conflict can be seen as a series of time-competitive, Observation-Orientation-Decision-Action (OODA) cycles. Each party to a conflict begins by observing themselves, the physical surroundings and the adversary. Next they orient themselves. Orientation refers to making a mental image or snapshot of the situation. Orientation is necessary because of the fluid; chaotic nature of conflicts makes it impossible to process information as fast as we can observe it. This requires a freeze-frame concept and provides a perspective or orientation. Once we have an orientation, we need to make a decision. The decision takes into account all the factors present at the time of the orientation. Last comes the implementation of the decision. This requires action. One tactical adage states that, ‘Decisions without actions are pointless.’  Actions without decisions are reckless.’ Then, because we hope that our actions will have changed the situation, the cycle begins anew. The cycle continues to repeat itself throughout a tactical operation. The adversary who can consistently go through Boyd’s Cycle faster than the other gains a tremendous advantage. via The  Surefire Institute

So how does this relate to real estate?

Well, let’s go back to our two U.S. presidential candidates, McCain and Obama.  One look at mass media these days and you’d easily deduce McCain is the weaker contender. After all, McCain is a 72-year-old poor public speaker who’s following George Bush’s course—conventional wisdom says that alone is a recipe for disaster.

But McCain and Obama are tied in the polls. Why?

Because before the Obama campaign can react to a situation, McCain has already analyzed it, made his decision on how to position the issue, and acted upon the plan. By the time the Obama’s campaign has entered the conversation, the issue has already been framed that Obama is fighting an uphill battle.

So again, WHY is this important to real estate agents?

Utilizing the OODA Loop strategy will give you a competitive edge in the real estate market. Agents need to constantly be in-tune with what is happening in local real estate markets. Keeping abreast of national issues is important as well. You need to constantly be focused on where the market is going and the needs of both buyers and sellers.  Realtors need to implement marketing and selling strategies to capitalize on the existing marketplace and adjust tactics as the market changes.

Think about it, how many agents are using the same listing presentation they used in 2005 with a few minor tweaks? Are you?  I guarantee qualified competitors aren’t. Are you honestly addressing the market and creating the proper expectations for your buyers and sellers? If not, why not? Getting listings is much different than selling homes these days. You need to be on top of the curve.

How many agents will go into a listing presentation lowering expectations (after being too optimistic on the downswing) while you know the market has turned? Countless. How many agents who have held on through the downturn quit right when the market starts coming back up. History proves it. Utilizing the OODA Loop strategy will keep you competitive, because you’ll know when the market really turns, not just when it feels like it may possibly be turning.

Real Estate Bloggers Win:

That is why real estate bloggers are so far ahead of the status quo these days. It is not because they write better—that helps, but not all that much. They’re ahead because they’re in the conversation on what dynamics are occurring in today’s market. This is an indicator for those who read their sites, but it also bleeds through and affects the agents day to day selling. Sellers and buyers know these agents get it!

Information is part of the competitive landscape these days and Web 2.0 savvy realtors are ahead of the curve. But even more successful are those realtors that actually do something with the information. Those who quickly and decisively act on information are the ones who come out on top.

Make the OODA Loop part of your strategic action plan when marketing and selling real estate. After all, look at the effect it’s having on the popularity of a balding, 72 year old guy from Arizona.

Tags: OODA

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