agents are influencers
Issue 73 - February 25th, 2022
Real estate agents are beacons of knowledge for their clients in all sorts of ways outside of assisting with the normal parts of the home buying/selling process.
How many of you have purchased a home or sold a home and needed a home affiliated vendor such a photographer or a landscaper or any other of the myriad of vendors that surround this major transaction in people’s lives?
The influence and suggestion of agents in these critical pieces of the transaction process are lifesavers for their clients. Agents wear many hats before, during, and after the transaction process. The reason for this dedication to customer service shows up in numbers and research published by the National Association of Realtors where 68% of people refer their real estate agent to at least one other customer if they had an enjoyable experience with that agent. The ongoing customer service probably pushes that referral number to much higher than just 1 extra deal if agents are diligent in their post-close follow-up.
Customers are trusting the agent with one of the biggest financial and life decisions they encounter, so they will certainly trust them with vendor referrals. The way this “vendor” selection process works for the agents right now is completely disorganized, and I believe there is a huge opportunity to improve this process for agents, vendors, and most importantly the home buying/selling customers.
In most instances, agents just keep a loosely updated list of vendors that is most likely shared between a particular office or agents have their “go-to” vendor for certain things like photographs or staging homes. In other instances, when tasked with a random request like a mold inspector, for example, agents will most likely hurriedly text and call other agents in their office for a suggestion, or they may even just Google to find something decent to pass on to the client.
On the business side of things, there are the following benefits:
Agent Benefit: Agents want to continue to provide value to their clients beyond the transaction process as agents rely on previous clients for new customer referrals and over 68% of people ask friends or family for a real estate agent suggestion.
Vendor Benefit: vendors need access to agents who are their customers
Platforms like Yelp!, Thumbtack, and others have lost the trust of the customer in my opinion, so I think people use those options as a last resort to find vendors. NextDoor, the neighborhood social network, is a popular place where homeowners trade tips/tricks, but there is also a lot of spam in these channels too.
I am writing this today because I personally believe there is a huge opportunity for real estate brokerage firms to build a vetted/verified vendor database that is available for agents to serve their customers in the best way possible. I do not know what that product looks like yet, but we have some ideas. If you are a vendor or an agent and have any ideas on this front, then I would love to connect with you.
Enjoy the weekend.
Sam
“a new chapter”
Check out my most widely read Substack post yet: we made a HUGE announcement a few weeks ago announcing our rebrand from Archetape to Pinnacle Realty Advisors. We are PUMPED for the year ahead!
Newsworthy Links To Share
How Should Real-Estate Agents Be Paid? Could buyers and sellers pay real-estate agents a la carte for specific services—say, showing a certain number of homes or listing a house for a set price? (WSJ)
Groundfloor steps up its real estate debt crowdfunding platform with fresh capital (TechCrunch)
“It used to take us 20 weeks to build a house,” said Adrian Foley, the president and C.E.O. of the Brookfield Properties development group, which develops thousands of single-family homes annually in North America. “And now it takes us 20 weeks to get a set of garage doors.” (NYT)
That Vacation Home Listed on Airbnb Might Be Owned by Wall Street: New York-based investment firm Saluda Grade is launching a venture with short-term-rental operator AvantStay Inc. to buy about $500 million of homes, the companies said Tuesday. Saluda Grade said it is also looking to raise debt by selling mortgage bonds backed by its homes to investors, the first vacation-rental mortgage securitization, according to the company. (WSJ)
Renting a Home Is Even Harder Than Buying One in Unrelentingly Hot U.S. Market: For Atlanta real estate agent Jamie Douglas, a dearth of inventory has made it almost impossible to take on new clients hunting for affordable rental homes. Now, she works with people who have at least $5,000 a month to spend on rent, double her usual base of around $2,500 because there’s just nothing available at lower price points. One house will get 15 to 20 applications and be rented within a day, she said. (Bloomberg)
BIG SUR,CA Mountain Home-$20,000,000: Introducing a new standard of luxury in the mountains of Big Sur. Just a short drive from Carmel & Pebble Beach, Bixby Creek Ranch provides a one-of-a-kind family retreat with possibly the best views and setting on the Central Coast. Sited on 78 acres adjoining an additional 300 glorious acres of private preserve with true panoramic views of iconic Bixby Bridge and the endless Pacific beyond.(Zillow)
Ark7 has launched a product offering that will allow users to leverage funds in their IRAs to invest in real estate alongside a mobile app. (FinLedger)
Heartwood Real Estate Group has broken into the Austin real estate market with its 16-unit townhouse development, The Reyna, with plans to develop over 1,000 units across the city, from other townhouses and single-family residences to affordable apartment complexes. (More Info Here)