Disruption in the real estate industry will not come from where you think, and savvy agents should get ahead of the curve now.
Disruption in the real estate industry will not come from where you think, and savvy agents should get ahead of the curve now.
One question I am often asked is, "Who do you reckon will be the disruptor in the real estate industry" My response is usually twofold.
One question I am often asked is, "Who do you reckon will be the disruptor in the real estate industry" My response is usually twofold.
Firstly, if it's tech related, it hasn't been invented yet. Yes, there are different apps, various sales models, social media tools and websites, etc that all claim to be the disruptor of online classified advertising. But if you talk to a consumer regarding these apps and websites, they usually have no idea what you are talking about.
Secondly, my usual response is, "It's you!", which leads to a quizzical look, followed by a frown and a "please explain". The fact of the matter is that everything has changed in our industry, yet nothing has.
A seller thinks of selling: they contact an agent, list their home for sale, the agent advertises the home for sale, a buyer wants to buy house, buyer goes to the open home or calls the agent, buyer makes an offer, agent handles negotiation, seller agrees to sell and everyone gets on with their lives. The buyer is happy, the seller is happy and agent pays some bills and makes a living.
The real disruptor will be the agent or business who has the ability to lessen the reliance on the real estate portals - the agent who manages their database well. Recent media reports mention the increase in off-market sales as a classic example of agents who utilise their database well.
How many leads does an agent need? I have never met an agent who does not get enough leads. Most just don't know what to do with them unless an immediate result is in the offering.
Try these numbers:
- Agent has five listings at any one time.
- Agent does five open homes on a Saturday.
- Agent does open homes every Saturday for 40 weeks a year.
- Agent gets a minimum of five new people through each open home.
Five opens x five attendees x 40 weeks = 1,000 new additions to the database excluding personal contacts, phone calls and referrals. Yep, you read that right. One thousand warm leads by just doing your job.
However, most agents only want to sell them the house they inspected today or get in contact with a person if they think they have something to sell in the next 30 days. I tested the agent follow-up recently and went through 13 open homes over three weekends and I received two call backs. Not one agent asked me whether I had a home to sell.
What about the person who is selling in six months, nine months or even two years' time? They usually get forgotten about and if they are lucky, receive a Christmas card in the mail at the end of the year. Agents fall into what I call the "stumble upon listing mode". A listing opportunity pops up and they grab it with both hands. It doesn't appear in a pipeline, they cannot measure quantifiably how they got it and most of the time they chalk it up as a "referral client".
Many agents can tell you a story where a person who bought a property from them, then listed it with another agent for sale within a few short years. They think they are managing their database but usually fall up a new listing out of dumb luck and not by design.
The disrupter is you - if you want it.
The disruptor is you, if you can make the effort to collect their name, phone number and email address.
The disruptor is you, if you demonstrate how being kept informed about properties that are new to the market prior to them being released to the portals will give them an edge.
The disruptor is you, if you care enough to actually call them back after an open home and program your automated database to trigger timely and relevant follow-up emails and texts.
The disruptor is you, if you are able to implement a client appreciation program. Have you sent a thank-you card, have you sent an anniversary card, do you hold client appreciation evenings, do you ask if a client has a home to sell, do you send "Just listed" emails, do you send "Just sold" emails, do you send price reduction emails?
Nothing has changed but the way we do things can change. The disruptor is all that data sitting in drawers, boxes, car boots in the form of open home registers, lost appraisals and past sales registers.
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Book A DemoAs someone deeply immersed in the real estate industry with extensive hands-on experience and a profound understanding of its dynamics, I can attest that the article on real estate disruption touches upon several key concepts that are crucial for agents aiming to stay ahead of the curve. The insights provided resonate with my own observations and expertise in the field.
Firstly, the article rightly emphasizes the evolving landscape of the real estate industry, dismissing the notion that technological disruptions are solely dependent on the invention of new technologies. This aligns with my awareness that while various tech tools and platforms claim to be disruptors, their impact on consumers may be limited, and awareness of these tools is often lacking.
The second key point underscores the enduring role of the real estate agent in the buying and selling process. Despite technological advancements, the core transactional process involving sellers, agents, and buyers remains largely unchanged. This aligns with my experience, reinforcing the idea that, fundamentally, the human touch and expertise of an agent are irreplaceable.
The article's focal point, however, is the potential disruptor within the industry—the agent or business that can reduce reliance on real estate portals through effective database management. This is a concept I actively advocate for, as I've witnessed the increasing significance of off-market sales driven by agents who leverage their databases adeptly. The mention of off-market sales as an example of successful database utilization is consistent with my knowledge of current industry trends.
The article highlights an essential question: How many leads does an agent truly need? The presented calculation of potential leads resulting from regular open homes is a testament to the abundant opportunities agents have to build a substantial database. This aligns with my experience of agents often having a surplus of leads but struggling to convert them effectively.
Moreover, the article sheds light on a common pitfall—the tendency of agents to focus solely on immediate results and neglect long-term prospects. The reference to the "stumble upon listing mode" resonates with my understanding of agents sometimes acquiring listings by chance rather than through strategic and intentional database management.
The disruptor, according to the article, is the agent who goes beyond the conventional approach, actively collecting and utilizing client information. The emphasis on personalized communication, client appreciation programs, and strategic follow-ups aligns with my belief in the importance of building lasting relationships and fostering client loyalty.
In conclusion, the article provides valuable insights into the evolving real estate landscape, emphasizing the agent's pivotal role and the potential for disruption through effective database management and client engagement strategies. As someone deeply engaged in the industry, I affirm the importance of these concepts for agents aiming to thrive in a dynamic and competitive real estate environment.
