Social media, outsourcing, and other new tactics have been described within the real estate industry as proof of a major change in the business. People talk about them as the magic bullets for an industry that is in crisis.
Most people will agree that the real estate industry in 2009 is in crisis. However, I don’t believe that it is because of short-sales, foreclosures, or the mess in the financial industry. It is my thesis that the real estate industry is in a crisis of identity. Realtors don’t know what role they are supposed to play in this new world so they search for answers to explain why things are not working like they did ten years ago.
A recent study by the California Association of Realtors said that people are using the internet to research properties for 8-12 weeks BEFORE they contacted a Realtor. This new behavior lends itself to some of the methods used in social media and outsourcing but it doesn’t answer the question of why.
I believe that Realtors are no longer the gatekeepers of information and that we can either fight against this shift or adapt to it and benefit from it. To adapt to a changing industry, Realtors will be expected to become local leaders and aggregators of useful information. A greater percentage of the work will fall into these two areas with the individual transactions becoming a much smaller aspect of the business.
{ 2 comments… read them below or add one }
I agree with you completely on this! When I bought my first home, I contacted a Realtor, told them what I was looking for, and they presented information to me, homes, locations, pricing, comps, etc.
By the second home, I was finding information on my own, found the place I wanted, and worked with the Realtor to help me determine price, comps, etc.
On the third home, I found the home, knew the price I was willing to pay, and called the Realtor to simply write the offer.
We know from other industries that trying to resist this change would be futile. Imagine how silly it would be to try to “lock down” the MLS system like it once was… no access to listings without a Realtor’s password… those days are gone, information was meant to be free as some would say. Sites like Zillow, Trulia, and CyberHomes among others are able to aggregate information that individual “traditional” Realtors could have only dreamed of.
In this “identity crisis” of a profession, just like any other, I guess I’d say, take a look at what you can bring to the table that the real estate buyer or seller can not do on their own. Focus on the benefits of what you can offer, and assist them in “helping themselves” if that is their desire.
I’m much more motivated to choose a Realtor who is tech savvy, teaches me more about the online tools instead of hiding them from them, and provides me tools and knowledge to become a better buyer/seller. By providing that knowledge and information, it makes it more likely that I’m going to stay with him or her for future transactions.
Dan, thank you for sharing your experience as a consumer. I agree that real estate professionals will need to become experts in education not sales. There is still a lot of value that can be provided but the time, place, and strategy are all shifting. The top performers of tomorrow will be the leaders and educators who have a committment to share and teach.