One year following the launch of Inman’s The Basics newsletter, our weekly dispatch of must-reads for new agents, we’ll spend the month of August digging deeper into what it takes to survive against the odds as a new agent in a tough market.
The real estate market faced a significant amount of adversity due to the pandemic, and it has seen a domino effect of challenges ever since. Presently, the financial markets are exhibiting volatility, resulting in substantial increases in mortgage and interest rates. These measures have been implemented to address the ongoing economic downturn and mitigate rising inflationary pressures.
While it may seem like the real estate industry is in dire straits, this idiom only holds true for those who aren’t embracing the other shifts in the market. Namely, the shift into a digital transformation. Technological advancements such as virtual reality (VR) and artificial intelligence (AI) can enhance many aspects of the industry for real estate professionals, and embracing this transformation could be what makes or breaks a firm.
The digital shift
Embracing the digital revolution empowers real estate professionals to reimagine their business practices with intelligence and intrigue. By catering to the digital needs of the expanding online customer base, you can deliver an enhanced experience, optimize operations, and boost revenue. Welcome to a realm where innovation drives efficiency and customer satisfaction reigns supreme.
The key technological advancements impacting the industry right now are VR property tours, AI-powered chatbots for customer support, and enhanced data analytics for market insights. These digital tools are reshaping the way real estate professionals operate, engage with clients and make informed business decisions by making each of these processes easier and more efficient for all parties involved.
It’s imperative that real estate brokers stay up to date and adopt the digital modernizations available, especially as predictions have stated that the real estate digital marketing industry will only continue to expand. If one does not prepare their firm or agents for this ongoing expansion, one’s firm will easily fall into irrelevance.
Enhancing client experience
One of the biggest positives about digital transformation is that it is improving the customer experience in the real estate sector.
Digital platforms for property search, online mortgage applications and e-signatures have made buying, selling, renting and investing more convenient and efficient. Online marketplaces and applications have become the go-to method for both buying and selling properties.
Some individuals bypass using a real estate agent altogether and rely solely on apps such as Zillow to sell their homes. Others visit these sites and simply click on the real estate agent listed below the property they like — rather than the now-antiquated method of real estate agent first, then looking at house after house after house afterward.
Utilizing these tools is significantly beneficial for brokerages, allowing them to have their properties listed in a similar manner with their own real estate agents a simple click away.
The incorporation of a customer chatbot is also beneficial for firms incorporating these databases and platforms, as the bot can answer simple questions more quickly than it would take for the potential client to fill out a questionnaire and wait for an agent to get back to them. By the time the customer does reach the agent, homebuyers are more prepared and have a better grasp on what they want.
Other digital tools that enhance the client experience are personalized ads and customer relationship management (CRM) software, which helps businesses better understand the needs and preferences of current and potential clients. Personalized ads help ensure that only those looking for services in an agent’s area are getting the ads for what the agent provides, while targeted ads promote the agent’s name effectively, making it easier for homebuyers to choose a firm or an agent.
Adapting to changing dynamics
There are a number of ways that real estate professionals can adapt to the evolving digital landscape. Embracing tech literacy by upskilling to stay competitive, building an online presence and maintaining a strong, professional website are all effective ways to accomplish this.
If you intend to keep up with market trends and remain a competitor in your area, you need to ensure that you understand the trends and tools that are readily available to make your job easier.
For example, a strong, professional website not only makes you and your business look better, it makes the process of buying or selling easier for both you and your clients.
Link Brokerages, a technology firm with a brokerage division that creates an ecosystem for real estate professionals to operate their business more efficiently, has a platform that helps it stay ahead of competitors.
“We are currently in the top 2 percent of the largest brokerages in the nation, and we are one of the few brokerages to have proprietary software,” said CEO Coby Chatwin. “Owning our platform not only reduces overhead costs, but also allows us to be nimble and make adjustments, such as adding features, quickly and cost-effectively.”
“Our platform streamlines day-to-day operations and centers around a deal management system that gives agents greater visibility and control over their transactions. Commission management, task management, a vendor ordering portal, and other organizational tools are all features of our technology. It reduces human error and makes agents more efficient so they can spend more time building relationships with clients.”
The real estate industry is undergoing a transformative shift driven by digital advancements, presenting both challenges and opportunities for professionals in the field. Despite the adversities brought by the pandemic and the volatility in financial markets, embracing the digital revolution can empower real estate professionals to reimagine their business practices and thrive in a changing landscape.
Technological tools such as VR, AI and enhanced data analytics are reshaping the way the industry operates, enhancing customer experiences, optimizing operations, and driving revenue growth. Staying up to date with digital modernizations is crucial for real estate agents and brokers to remain relevant and competitive in the expanding digital marketing industry.
By adapting to the evolving dynamics and leveraging tech literacy, real estate professionals can establish a strong online presence, utilize personalized ads and build customer relationships through the effective use of a CRM. Embracing the digital shift is not only essential for survival but also offers immense opportunities for growth and success in the real estate market of the future.
Victoria Kennedy is CEO of Atman Real Estate. Connect with her via email.
