Today’s Top Threats and Opportunities in the Real Estate Industry - Lakeside Title Company (2024)
A recent interview between internet and real estate entrepreneur Brad Inman and Joseph Rand, a managing partner of the 30-office, 800-agent company Better Homes and Garden Real Estate – Rand Realty. They explored several current threats posed to real estate professionals in 2016. According to Rand, the top areas of weakness for realtors are: poor consumer perception, a lack of consumer education, and squabbles over market listing data.
#1 Threat – Consumer Perception
Unfortunately, many buyers and sellers are under the impression that real estate agents are little more than salespeople. According to Rand, real estate agents must do a better job of showing buyers and sellers what they do behind the scenes. Around 90 percent of a real estate agent’s time is spent counselling people through complicated transactions.
Which brings us to the second threat: a lack of consumer education. The first threat is consumers’ ill-conceived perception of real estate agents, but just as problematic is that many real estate agents aren’t doing enough to counter those perceptions. This is especially important in today’s market, where new people and new technologies are challenging real estate agents on their pricing model. The market is ripe for disruption. If real estate agents don’t educate consumers on their value propositions, both face-to-face and via marketing efforts, sellers will be all the more likely to forsake traditional and have someone throw their home in the MLS for $500 bucks.
#3 Threat – Control of Listing Data
Multiple MLS s are negatively affecting both real estate agents and consumers, and companies like Zillow have stepped in and benefited from the confusion. Zillow is smart, they have highly developed marketing platforms and a consumer-friendly brand. They’re inserting themselves into more and more transactions, and brokerages will have to adapt. Upstream, which has been marketed as a tool to make real estate professionals more valuable—not to replace them—is likely to become the single point of entry for all listing information. In the end, it is highly unlikely that Zillow and Upstream will replace real estate professionals. What they will do is force real estate agents to sharpen their skills, expand their knowledge of the markets they work in, and communicate these differentiators to consumers.
Lakeside Title Company: Maryland Title Insurance & Closing Services
Lakeside Title Company is a leader in title insurance and closing services in Maryland, Washington D.C., Northern Virginia, and Southern Pennsylvania. We help simplify and streamline transactions for builders, lenders, and real estate agents. For more information, please visit our homepage today!
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As a seasoned expert in the real estate industry, my extensive knowledge is rooted in years of experience and a deep understanding of the dynamic challenges faced by professionals in this field. I've closely followed key figures and discussions within the industry, allowing me to stay abreast of the latest trends and developments.
In the recent interview between Brad Inman and Joseph Rand, they delved into critical issues that were pertinent to real estate professionals back in 2016. I'll provide insights into the concepts discussed in the article, shedding light on the challenges faced by realtors during that time:
1. Poor Consumer Perception:
Joseph Rand highlighted the prevalent misconception among buyers and sellers that real estate agents merely act as salespeople. Contrary to this perception, he emphasized that around 90 percent of a real estate agent's time is dedicated to counseling individuals through intricate transactions. To combat this misperception, agents needed to showcase the depth of their behind-the-scenes efforts.
2. Lack of Consumer Education:
The second threat identified was the insufficient effort on the part of real estate agents to educate consumers about their value propositions. In a market evolving with new technologies and players challenging traditional pricing models, the importance of educating clients became paramount. Failure to do so could lead sellers to explore alternatives that might not fully capture the expertise and services of traditional real estate professionals.
3. Squabbles Over Market Listing Data:
The control of listing data emerged as a significant challenge affecting both real estate agents and consumers. The proliferation of multiple MLS (Multiple Listing Service) platforms was causing confusion, and companies like Zillow capitalized on this by stepping in as intermediaries. The introduction of Upstream aimed to streamline listing information, emphasizing its role as a tool to enhance the value of real estate professionals rather than replace them. However, the article suggests that these changes would compel agents to sharpen their skills and better communicate their unique value propositions to consumers.
In conclusion, the real estate landscape in 2016 faced challenges related to consumer perception, education, and the control of listing data. Successful professionals were expected to adapt to emerging technologies, market dynamics, and evolving consumer expectations to remain competitive in the industry.
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Introduction: My name is Barbera Armstrong, I am a lovely, delightful, cooperative, funny, enchanting, vivacious, tender person who loves writing and wants to share my knowledge and understanding with you.
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