Mike B
Real Estate Consultant, Trainer and Realtor (8800+ Connections) Twitter: @MIRealEstate
What will the real estate agent of the future be like? What skills will be necessary? How will the profession change going forward?
I have witnessed many changes in the real estate industry over the past 31 years and always embraced them as good for our industry. What we are experiencing right now with Web2, social networking for business and micro blogging is not a fad. These are exciting times and I see opportunity for those who buy into it and get re-educated to relate to the e-consumer.
Good Answers (8)
Alex R
CMO, Integrated and Social Media Marketer (B2B/B2C), Marketing Technology Executive: IBM, SGI, Bertelsmann AG, Social2B
Best Answers in: Staffing and Recruiting (1)
Mike, you are asking this question at a time of peril and challenge to the Real Estate industry and I think it is a great question. I consider true Real Estate professionals to be on the side of other Professional Services professionals, making their living by not only selling product, but also selling expertise. I recently had lunch with a friend, who is a Commercial RE professional in Manhattan and I asked her a simple question: "How do you spend your time these days?". The answer shocked me - she is still making calls from 9am until 7pm and basically getting the same response - NOTHING. The RE Professionals have to embrace new models of doing business - everyone else is doing it. And Social Media Marketing can come to the rescue - it is not a fad. If there is no value through consultative and well researched content, the consumer or a business will simply find a way to conduct business bypassing the RE 'selling process' altogether. The need to listen, communicate, engage, and educate is there and RE Professionals can deliver if they start using the same tools that a consumer is using already. In the end, it will be up to the individual to drive business by getting close to a community of potential buyers, and doing it the old fashion way - by building a relationship.
Interesting question Mike. Rather than just look at the impact of web and social media etc what about the economics regarding remuneration. The experience for both buyer and seller is highly emotional, so it seems unlikely that the need for an agent with empathy will ever disappear (ie the web wont replace the need for someone to help in the decision process). But what I find difficult is the question of who the agent works for. In Oz they work for the person paying the commission...the vendor most of the time. But when I buy, I definitely want someone who is working for me. The economics of a buyer side agent needs to be worked out. Maybe commissions could become fee for service? Maybe the listing agent has a fee and the selling agent has a fee (which could be one and the same of course but at least the buyer could make a more unbiased choice about who to deal with). Just thinking out load... There is no doubt about it, the advent of web based marketplaces saves a lot of time, fuel and rubber. And a social network can allow an agent to communicate more quickly and effectively, giving more people the opportunity to take advantage of an offering than the old "hours on the phone" approach.
Hi Mike,
Interesting question (my Father, now retired was a real estate agent and since that time things have changed markedly).
The Real Estate agent of the future will need to become far more internet aware that ever before and will use all the tools mentioned above in order to gain a foothold in a highly competitive market.
Blogging - because search engines love blogs is a prime example of SEO that anyone can do. Also the relationship aspect which is vital for any business. Realtors need to get hold of working within the social realm online in order to reach a client base that are migrating from watching TV and purchasing newspapers and magazines to the internet at a growing rate.
In addition to this they will be embracing streaming media as tool to expand their visibility beyond the local area in order to reach more clients both in their own country and with prospects overseas.
The realtor will also need to consider the prospect of online video conferencing, email campaigns, voip etc to cut down on their travel costs and printing expenses in order to be competitive.
I have added a case study in the link below to show how one realtor has expanded her client base and profitability using streaming video.
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I totally agree. Those that "get it" will move forward and succeed. Those who don't will eventually struggle. The attacehd article paints a sad but very interesting parrallel to our industry.
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Simon. I am in agreement with your line of thought. I believe the real estate industry has moved in a directoin that is irreversible. The consumer is no longer dependent on the real estate professional for informaton. The information that was controlled by the MLS and it's members is now available directly to the consumer, and this trend will only continue. I believe over the next number of years MLSs are going to struggle to maintain relevance. I believe independent of that the real estate professionals have to evolved. There is definitely value in a top notch real professional. I've heard of ideas like offices becoming "showing centers" and on duty real estate professionals being more concierage types, showing property and advising clients. I think the top agents will be primarily listing agents and will charge fees for their services, much like accounts or lawyers do, with a final fee or commission paid if a property sells or closes. I'm sure there's a ton of resistence to this thought process, but I think the customer is pushing us in that direction. I also believe that the real estate online is going to become "Googlefied". I can see open source real estate listings online where clients post their own stuff and prospects comment and blog about specific properties. Customers will tell real state professionals what they need. It's happening on the social networks right now. Thanks for the question Mike. It definitely makes you think.
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Changes are extremely important, incorporating and integrating web and social media applications for all businesses. In real estate it is not only the agents who must change but also the leadership of all companies. At the brokerage level, this will be a defining point in the growth, dynamics, operations and philosophy that drive the bottom line. At the vendor level it will define the relationship, speed of transacting buisness and alignment of loyalties.
Marcus C
Director of Marketing at The Milestone Network
Best Answers in: Customer Service (1), Education and Schools (1), Small Business (1)
I see the obvious adjustment being made to attaining a real estate license. This will discourage those who are "part time" real estate agents in lieu of those who are full-time professionals. The real estate agent of the future will have an equal diet of technology, business and consumer relation skill sets. There will be a diminishing of real estate companies, due to a lack of effective marketing, service and structure. I don't see this business becoming internet based in totality, because the one-on-one engagement is and will always be the most effective approach.
The market has numerous variables for clients to consider other than just the style and price of the home. I think the web is extremely important now and in the future of real estate, because clients need and want as much information as possible to make informed decisions on pricing their properties for sale and also those looking to buy. However, the professional agent of the future is the person who finds the best fit for their clients needs by being able to utilize all the information available and let the client make a decision based on the specialized knowledge that an agent can provide.
I believe now more than ever the role of the real estate agent has become increasingly important to consumers. Now you have to take into consideration foreclosures in the area, stability of the communities, how much new construction they are competing with and which developments have appreciated in this market or taken a beating. It is no longer a task of just listing a home or taking out a buyer to check out what's currently on the market. It's educating them on what is happening with home prices in the last 3 months. Compare this situation to a few years ago when there was a natural progression of pricing in the area, when you knew if you lived in a home for several years you would make a profit.
The web has given agents the opportunity to display their properties to an exponentially greater number of potential clients. It has also given us the capability to send clients detailed information from aerial photos, tax information, schools, city, parks, to the best transportation routes for them to take to work! In this market a seller or buyer needs to have an experienced agent that can give them the statitics and research in the specific one mile radius of the home to let them know if they are priced correctly when listing or buying. The web has given agents great tools to use to provide outstanding professional service to our clients.
More Answers (5)
Nate B
Web Design, SEO, and Internet Marketing Specialist President/Founder of Integrity Online Marketing
Best Answers in: Advertising (1), Using LinkedIn (1)
As the founder of a real estate investing company, I have always viewed the primary value of an agent as a Seller to be finding me a buyer fast, and as a Buyer, getting me the good listings before they hit the public mls. I think that will be the main skill. From my experience, there are very few real estate agents that know how to find a buyer beyond lising it in the mls and putting a sign in front of the house. The other huge skill, I think will be establishing a relationship with the loss mitigation departments with lenders and being able to quickly help the short sale process go through.
Mike, I totally agree that you have to be in it,to win it. I currently utilize the internet for 50% of my business.The other 50% comes from referrals and my sphere of influence.Social networking is a great way to get your name and your brand out there,but you must be cautious. There are many predators on Facebook and Twitter.The key for my success is to stay positive,and keep my eye on the ball.I always try to stay on the cutting edge for my real estae practice.The people that I have connected with on the Linkedin network are much more serious and professional than most.
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Mike,
Web 2.0 has been great: check out Valuation-Nation.ning.com
I share your thoughts on the future of RE. Let me know if you come across any good sites. Best of luck in all your endeavors.
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Rob
Valuation Nation
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Mike, you have done so well with technology. I am impressed. I am from the erasing shield and carbon paper era, and it hasn't been easy, but you, on the other hand, have embraced this method of communicating and encourage others. Good job.
Thanks for linking in. I am looking forward to what the future holds for our industry
