agent evolution
Issue 78 - April 1st, 2022
A Tweet I posted earlier this week inspired my thoughts for today’s post:
Sometimes it seems like the world has a love/hate relationship with real estate agents:
“They are going extinct”
“They make too much money for just opening the door”
“I can do this myself and save money”
And the list of things goes on and on…
BUT the reality is the AGENT is becoming more important and there has been a steady trend of agents being involved in MORE transaction since 2001 even with the innovation in the industry and models like iBuyers becoming more and more mainstream.
According to National Association of REALTOR data:
87% of buyers purchased their home through a real estate agent or broker—a share that has steadily increased from 69% in 2001.
90% of sellers were assisted by a real estate agent when selling their home.
I have been involved in the residential real estate industry for about 15 years, and I have constantly challenged myself to think about the future of our industry at all times. Since my beginning days, the main difference I see in top producing agents is that they understand their ROLE is changing. The role is no longer “property finder” as much as it is “home search/sale consultant”. Consumers have just as much data about homes as agents do in today’s world.
The differentiating factor in good agents is people who keep up with industry trends, neighborhood happenings, serving as on-going resources for their clients pre and post home sale, and always keeping their clients informed of market dynamics on macro and micro levels.
The agents earn their keep, in my opinion, when advising sellers about staging, photography, or improvements needed to the home before listing. OR, when representing buyers in a frenzied market like today….buyer’s agents advise on great mortgage partners, best ways to structure a contract to win, and helping their clients navigate a quick or non-existent inspection period.
Sure, tools are popping up to help the DIY sellers and buyers, and this has honestly always been a part of the market, but this will never become a meaningful percentage of home sale transactions at least in my life time.
We will not go from agents being involved in roughly 90% of home transactions to ZERO as some people like to predict, but I do think we have to understand that their roles are changing. Agents are some of the most hard-working entrepreneurs in our country, and I know they will always find ways to evolve and stay relevant as the world changes around them.
Newsworthy Links To Share
Can Millennials Take Over A Tougher Housing Market in 2022? (Yahoo! Finance)
Property Investors Target Small Businesses as Market Heats Up: Gas stations, grocery stores and doctors’ offices draw interest from venture-backed startups, which see an opening because big asset managers typically avoid such properties. (WSJ)
Poplar Homes, a property management company for single family rental investors, announced raising a $53 million Series B led by LL Funds. (FinLedger)
Compass completed $251.1 billion in transactions last year, more than any other brokerage firm. HomeServices of America had the most sides. (Inman)
They Rushed to Buy in the Pandemic. Here’s What They Would Change.
A frenzied sellers’ market led some people to make harried decisions when buying their homes that they now regret. (NY Times)
Crow Holdings Announces Closing of Development Opportunities Fund with $750 Million of Committed Capital
Home spending in Colorado’s mountain counties has doubled over the past 2 years, and it doesn’t show signs of stopping. Demand for mountain homes—and their prices—continue to soar, causing what The Colorado Sun deemed “a high county housing crisis.”