The Real Estate Industry and the marketplace are dictating changes in the way a real estate transaction takes place today. TV shows such as the “Millionaire Agent” are making celebrity spokesman out of Realtors. There is disruption in the marketplace as the consumer searches for information on their own. The way real estate transactions take place is ever changing.
Today’s consumer wants surveys, testimonials, quick response, transaction tracking ability, instant communication, community data, school ratings, structural analysis, and access to data. They expect more from their realtor and want to do the home search on their own. Real Estate Portals such as Zillow, Trulia, Realtor.com and HAR.com are providing home searches and pertinent information regarding housing.
What have not changed are the qualities that make a good agent. The best agents are experienced professionals who understand the complexity of a real estate transaction. Their duty is to guide and educate the client. No details are left to chance. When you hear an agent say there was a surprise that means someone has not done their homework. The expert realtor may spend hundreds of hours working to insure that the hour at the title company takes place. In the past files could be several inches thick with paperwork and notes. Now day’s files are talked about in terms of Megabytes and stored safely in the cloud.
The big brokerage houses are scrambling to protect their interests. They see competition from Trulia, Zillow, and Redfin. Agents are working from home and clients no longer come to the expensive brick buildings with hand carved woodwork. If the agent works at home the real estate company cannot charge a desk fee, thus a substantial amount of revenue is lost to the company by agents working at home. It used to be everyone dressed up when looking at Real Estate. The reality is some companies keep their agents in suits and dresses. While other agents dress as casual as the clients they show property to. Agents no longer need to drive expensive black foreign cars, but the Porsche Panamera seems to be the exception.
When information is requested the correct response time is now. If the consumer wanted the information later they would have asked for it later. In order to keep the client satisfied the agent must attend seminars, classes, and community meetings constantly, so they can answer questions immediately. In this business the one constant is knowledge is power. If you don’t know the answer the consumer will find someone who does.
The biggest game changer has been technology. Agents now do presentations on an iPad, use a Surface Pro to access files and make changes, keep in constant communication with an iPhone, drive using a global navigator, and transmit data thru the cloud to their mainframe computer. Contracts can be written anywhere and signed on a tablet. There are apps to do everything from checking the walk distance to taking a picture of a home and giving you instant data on a home that is not even listed.
The day is fast approaching when the consumer will view 3d holograms of homes. The client will hold their iPad over the picture and they can view the home like they were walking around the home. If there is something of interest they can literally isolate it to look at by itself. After viewing the home the augmented reality will direct the viewer to the realtor’s website or phone.
The internet has not changed the consumer’s goal of finding an experienced professional to work with. The 2012 Profile of Home Buyers and Sellers done by Google showed that 89% of the consumers who used the internet to search for a home used a real estate agent. Even though consumers are using technology more they still see the benefit of a realtor. Inman News states Homebuyers more likely to use real estate agents even as internet usage hits an all-time high.
The first thing they tell you when you get your license is to fake it until you make it. The US Government says when choosing a realtor pick someone who has been in the business over two years. This does not mean they are any good or not but that they should know how to write a contract by now. You don’t want to be the training program for your agent
Testimonials and ratings by clients are used as a way to choose an agent. The real estate industry must come up with a better way of showcasing an agent’s knowledge. The public does not even understand the difference between a licensed realtor and a real estate agent. They certainly don’t have any understanding of the many designations available to realtors. We have two broad categories of realtors today, brokers and agents. Maybe there needs to be some category which recognizes experience, number of sales, and years in the business.
In summary: Technology cannot replace the role the realtor plays in a transaction. There will always be a place for a trained professional realtor not matter how good the technology. If you are consumer trusting someone with what may be the largest purchase in your life, hire a professional realtor with years of experience.