Social Value in Real Estate and the Social Value Act 2012

The real estate field is continually changing and evolving – but it’s become more important than ever for real estate agents to consider how their actions could bring social value to the community. With this thought in mind, today, we’re looking at some of the key things you need to know about social value in real estate applications and what social value might mean for your real estate business.

What is Social Value in Real Estate?

Social value in real estate is often a somewhat misunderstood topic, and many real estate businesses fail to take advantage of the excellent opportunities that social value in real estate could provide. However, at its simplest, social value relates to the quantifiable level of social benefits a business can provide for its communities through its activities. These benefits are often based on sustainability for economic, environmental, or social activities.

Is Social Value a Legal Requirement?

If your real estate business commissions public services, as of 2013 (with the introduction of the Social Value Act 2012), it has become vital for your business to focus on providing social value. This means that businesses operating for public projects and goals will need to consider how they could deliver social, environmental, and economic benefits overall.

How Does Social Value Apply to Real Estate Businesses?

Real estate businesses face unique challenges when it comes to social value. This is since a worthwhile level of social value for real estate businesses can seem hard to attain, but there are numerous ways that social value can relate to real estate firms.

Social value is highly important for businesses looking to bolster their activities and promote their social standing among the community. In many cases, customers are far more likely to choose a real estate agent that is seen to provide a genuine, valuable difference in the local community than one that does not focus on social value.

Implementing social value for your real estate business is a simple activity. While many real estate agents struggle to see how their actions could provide social value for their local community, some key options you could consider include the following:

• Increase your level of marketing for the local community, helping drive increased interest in the area to strengthen it from a commercial perspective. This step may help increase house prices and the saleability of properties from your clients’ perspectives (while making it easier to sell homes locally for you!)
• Take steps to ensure that every home you sell provides a value aesthetic for the community. Simple changes such as supporting your clients with flower baskets and helping them with tidying up can make a drastic difference to the outside of a property, further strengthening property values and the overall appeal of the area.
• Provide honest, dedicated services to local clients, so they can be confident that they’ll get the best possible representation when partnering with your real estate team. This helps increase trust and strengthen sales in your area, providing economic merits overall.
• Invest in your office space to help make it stand out from the crowd (for all the right reasons). Investing in office design is a simple way to add appeal to your local high street.

Final Thoughts

As a real estate business owner, it’s easy to get swept away by the ever-growing pressures to achieve faster sales, higher selling prices for sellers, more affordable rates for buyers, and the like. However, as per the Social Value Act of 2012, it has become more crucial than ever for real estate businesses to consider whether they could provide social value in their real estate services.

Fortunately, providing social value in real estate is often much easier than many agents consider. With this in mind, if your real estate business is looking for ways to differentiate itself and provide boosts to the community, we strongly recommend considering today’s tips on how to bring value to your real estate transactions.