2015: Real estate agent of the future
Roadmap to Recovery: Essay
By Inman News, Monday, January 26, 2009.
Editor's note: Inman News enlisted the insight and creativity of our readers in the Roadmap to Recovery editorial project, which seeks a path forward for the real estate industry. Click here for details.
By Saul Klein
What skills will the real estate agent of the future require?
Much the same skills that are required for success in the real estate sales business today, with a little twist. I have always believed that success in any sales business requires product knowledge, communication skills, access to new prospects, contact and consistent communication with past customers, and integrity.
Agent 2015 will possess:
- Generational communication skills. Different generations communicate in different ways. National Association of Realtors statistics indicated that 78.8 percent of first time homebuyers in 2007 were Gen-X/Gen-Y. “Speaking the language” of these generations may be an important differentiator in the coming years as these age groups (generations) move out and up.
- Negotiation skills. Would you accept as your representative a real estate agent who is not a competent negotiator? This is an area in great need of improvement in today’s world. Note that negotiation skills and communication skills go hand in hand.
- Technology skills. Nothing fancy, but prospecting and marketing must be automated and agents must be able to reach more people more easily and must be in the “center of the conversation” about real estate, not merely in the “center of the transaction” which was the buzz phrase of the last decade. Client management and online transaction management software will become more widespread.
- Online social skills. Social networking for prospects and for referrals. As more relationships will begin online in coming years, and old relationships are rekindled online, social networking skills will gain in value to the successful agent of the future, which leads to the next skill: the ability to express oneself in writing.
- Writing skills. The agent of the future will be able to express him or herself in writing. The lost art of writing will make a comeback.
Success in real estate sales in the future will require product knowledge, sales skills and access to customers, and service with integrity. In an age of transparency, the comment, “Your reputation precedes you,” could not be more true.
Saul Klein is president and CEO for InternetCrusade and CEO for Point2 Technologies.
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Submitted by Jay Zenner on January 26, 2009 - 5:22am.
Although Saul Klein is a pioneer in promoting technology in the industry, I think this list, like many others, overlooks an important skill that will be necessary in the future, marketing homes. In a booming sellers' market maybe inclusion in an MLS and a sign in the yard are all the marketing you need. With more inventory and fewer buyers controlling the market, sellers are competing with one another and listing agents should become marketing directors for their clients. This means better pricing, better use of promotional tools, better use of the distribution channels and better preparation of properties for market. For many years the heavy emphasis has been on teaching agents how to acquire clients. This will always be important. But for the foreseeable future skillful marketing of a home should be added to the list of necessary skills.
Jay Zenner
Submitted by Jose Lopez on January 26, 2009 - 6:01am.
How true! You can see the SHIFT coming. The agents that are in tuned to the internet are revolutionizing the real estate business. With over 80% of buyers looking online first, it is the right place to be.
Jose Lopez
www.sellsarasota.com
www.fl-repos.com
Submitted by Fran and Rowena on January 26, 2009 - 7:12am.
Saul,
Good article. We would like to add one more "skill" to your list that we feel is paramount in our business ... "people skills". There's no substitute for having a heart, and caring.
Best regards,
Fran and Rowena
http://www.franandrowena.com
Submitted by Sue Eller on January 26, 2009 - 9:32am.
Although I agree with you Saul, I also agree with Fran and Rowena about "people skills." In spite of all of our technology tools, when you get right down to it, this is not a house business, but rather a people business. When you are in the middle of a crazy transaction, you need to be able to be confident that the client trusts you to have their best interests at heart. That requires a true ability to connect with them on personal level. They are often making the biggest decision of their lives and they are counting on you to help steward them thru the many issues that arise during the transaction. Being "online" is great, but it does not replace face to face contact.
Submitted by Bob Connors on January 26, 2009 - 9:56am.
Agreed that online and social networking will be very important. It still surprises me when I see stats that show 80% of people start their search online...always seems a bit low to me.
Bob Connors
Real-a-Save, LLC
www.realasave.com
Submitted by Marvin Jensen on January 26, 2009 - 10:50am.
So, pretty much every think we are doing now! I was thinking we would have to have a telecommunication device implanted in our heads...
Submitted by RN on January 26, 2009 - 12:17pm.
I have an unfortunate suspicion that the Internet will eventually remove the buyer's agent completely from the equation.
Submitted by Marc Davison on January 26, 2009 - 3:44pm.
I agree with this article completely. I am also sure that the omissions perceived within i.e., people skills are wrapped up inside of the major skill sets Saul describes.
In the coming years, with 80,000,000 millennials coming into the marketplace who will be real estate's primary buyer, hiding behind such cutesy expressions as being computer illiterate will no longer be tolerated. With over 1 billion people on the Internet across the world (almost 200,000,000 alone in the USA), the future agent is going to have to have a command of the Web and be able to formulate their thoughts in social acceptable manner online, through the publication and broadcasting of their knowledge.
As an example, last week while engaged in a Twitter conversation I mentioned my interest in relocating out of Ca to Austin. The next morning I had a DM sitting in my in box from an Austin agent who caught wind of the conversation.
She didn't send me a poorly spelled email. It didn't include a photo of her doing the Lambada with her poodle and it didn't go off into tangents that included a sign off that attempted to access any of my friends on the slim chance they also needed her assistance.
The agent of tomorrow will indeed be required to possess the skills Saul sets forth and by my estimation, that future he talks about started 2 years ago.
Marc
1000Watt Consulting
Turn On!
Submitted by David Montgomery on January 26, 2009 - 4:20pm.
"I have an unfortunate suspicion that the Internet will eventually remove the buyer's agent completely from the equation."
It's already started. The more information made available through non-licensees, the less buyer contact opportunity agents will have.
Then there is the "text messaging" generation...
Buyr Agt: Ofr $350K
Selr Agt: ROTFLMAO
Submitted by Danilo Bogdanovic on January 26, 2009 - 5:22pm.
The traits you described are pretty much dead on, but you may be off on the timeline by about 5 years - those traits are shared by the up and coming, if not already here, agents of 2009. And it's what consumers want now, not in 6 years.
Those traits fall in line with the changing role of real estate agents - from real estate sales people to real estate consultants and advisors. Though being a consultant can be considered a trait in itself (imho).
Danilo Bogdanovic
Real Estate Consultant, Realtor
http://www.LoudounScene.com
http://www.LoudounForeclosures.com
Submitted by Danilo Bogdanovic on January 26, 2009 - 5:26pm.
Btw... David - it will remove the listing agent from the equation, not the buyers agent.
The internet, technology and software will make listing a home much easier and bring less value to the listing agent as time goes on. But the need for a great consultant and negotiator on the buy side will never go away.
Danilo Bogdanovic
Real Estate Consultant, Realtor
http://www.LoudounScene.com
http://www.LoudounForeclosures.com
Submitted by Jonathan Kauffmann on January 27, 2009 - 10:00pm.
2015? Try 2010.
Jonathan Kauffmann
www.NestRealtyGroup.com
Submitted by Marcia Canady on January 28, 2009 - 9:46am.
I agree with everyone's comments...Agents need to invest in learning how to market properties online using social networking, etc. But what I think is missing is a "how to".
We recently launched a comprehensive online marketing program that includes video, social media sharing tools, social networking tools etc. in one complete package for agents with listings of over $1million. We will also offer coaching/training for agents who sign up for the program ($99/month) so that they can be more effective in using these new technologies to market their properties.
The site is: www.LuxuryRealEstate4Charity.com.
It’s a combination of Facebook and YouTube for high-end Real Estate.
Since approx. ~32% of buyers come from the Internet and only 5% come from Print*, Agents will need to become tech-saavy and take advantage of Online Marketing Programs.
And since 73% of buyers say that they would be more willing to list with an agent who offered to shoot a video, we provide a way for Agents to not only post Property Videos, but share them with potential buyers.
www.LuxuryRealEstate4Charity.com will help Agents market and sell Luxury Properties directly to the Affluent Buyer on the Internet...which means no commission share.
Agents can create a profile and upload videos of their properties. The Agent Profile links to every Property Video and every Property Video links to all of the Agent’s listings. The Agent can have their clients post “testimonials” by becoming a Fan and making Comments on the Agent’s Profile and Property pages.
The site includes all of the Social Media sharing tools (email to a friend, post to Blogs/Websites, Facebook, Digg!, Twitter, Social Bookmarketing sites etc.) in order to create a viral, word-of-mouth marketing program.
We also added in "cause-marketing" so that the Affluent Buyer can feel good about buying high-end properties in this market. See the article in Newsweek called "Luxury Shame" http://www.newsweek.com/id/171246.
When a property on LuxuryRealEstate4Charity.com is purchased directly through the Listing Agent, the Agent will make a donation of 1% of the property sales price to the Habitat for Humanity Affiliate where the home resides.
That’s quite a chunk of money, especially because properties posted to the site must be over $1million.
When a 1% donation is made, the Habitat for Humanity Affiliate will create a video documenting the donation so that you know exactly which project and which families are benefiting.
These videos will be posted to the site and used in 2media's aggressive PR & Marketing Campaign to drive Affluent Buyers to the site. No other online luxury real estate search portal provides an entire PR & Marketing campaign to drive affluent buyers to the site.
We also created an "online community" to support Habitat for Humanity. Individuals can become Members of the Community and help “Spread the Word” through the Charity Widget, sending Property/Habitat for Humanity Videos to friends or posting to Blogs/Websites, Facebook, Twitter, etc.
We have launched in Southern California and will expand Worldwide in 2009.
Marcia Canady
President & COO
2media.us
www.LuxuryRealEstat4Charity.com
marcia@2media.us
Tel: 949.544.1740
Submitted by Margaret Summers on February 2, 2009 - 6:05am.
All of the skills represented in the article are skills that have always been required of a top notch real estate agent - with the exception of technologg which did not make its way into our field until the mid 90's - around the I came back from a four year "stint" in Japan. How I wish Internet had been readily present while overseas! I taught a "Buying a Home" class to returning DOD civilians and military while overseas and I can say that it would have been an absolutely wonderful tool (had it been available) when I was developing the class. I suppose they all use the web and social networking, at this point, to get the information they need - and some of you have probably been contacted by them - making an even stronger point for realtors being readily visible on web sites.
Submitted by Jodi Summers on February 2, 2009 - 9:00pm.
Yeah for me!
Best….
Jodi Summers
The SoCal Investment Real Estate Group
Sotheby’s International Realty
310. 392.1211
fax: 310. 392.1001
jodi@jodisummers.com
www.SantaMonicaPropertyBlog.com
www.SoCalMultiUnitRealEstateBlog.com
www.SoCalGreenRealEstateBlog.com
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If you can imagine it, you can achieve it; if you can dream it, you can become it.
- William Arthur Ward