realtors are the rock
Issue 122 - February 10th, 2023
Residential real estate is always a hot button topic since it is such a personal part of our daily lives, but the topic of “real estate agents” can be an even more heated topic of discussion.
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 transactions 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.
iBuyers like Opendoor and others account for less than 2% of total market share in the entire industry
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 have seen 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 an evolving market like today….buyer’s agents advise on great mortgage partners, best ways to structure a contract to win, and help their clients navigate a transaction end to end.
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 lifetime.
Agents continue to serve as a resource to their clients outside of the transaction piece as they continue to share home-affiliated vendors with clients, trends in pricing in their neighborhood, and other services and data surrounding their clients’ homes that could be useful. Relationships with previous clients are the best place for referrals, and the best agents realize their work continues well after a successful home purchase or sale transaction.
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.
Improving the tools and brokerage platforms for agents to run their business is the biggest opportunity in the entire industry to improve the transaction process for everyone involved. If the agent’s workflow improves then consumers benefit as a result. Win/Win!
Newsworthy Links To Share
Are brick-and-mortar brokerage offices going the way of the dodo?
Brokerages big and small are looking to cut overhead costs and are shuttering offices, but what does this mean for their agents?
NYC Wealth Exodus Drives Billionaire’s Bet on South Florida Boom
Related’s Ross is looking beyond Miami and West Palm Beach to meet the growing demand for offices in the region.
We still want that house: Despite sky-high mortgage rates, 9 out of 10 major US metros posted price gains for single-family homes in Q4. (CRE Daily)
Real estate agents say they can't imagine working without ChatGPT now
Property Taxes Are Going Up; Here’s How to Lower Your Bill
Some homeowners could see higher property-tax bills this year, but there is one recourse: appeal your assessment.
Fork in the road: Private REITs were all the rage over the past few years, but 2023 could be The Year of The Public REIT. Either way, savvy REIT investors should have plenty of opportunities. (CRE Daily)
Offerpad buys more time with $90M raise from investors
Private placement with existing investors including CEO Brian Bair extends the company's cash burn runway by six months to a year, KBW analysts say.
Amazon Pumps The Brakes On Brick-And-Mortar Grocery Concept
Amazon is halting the growth of its brick-and-mortar grocery stores until it can figure out how to improve their economics.