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Disruption in the real estate industry will not come from where you think, and savvy agents should get ahead of the curve now.
One question I am often asked is, “Who do you reckon will be the disruptor in the real estate industry?” My response is usually twofold.
Firstly, if it’s tech related, it hasn’t been invented yet. Yes, there are different apps, various sales models, social media tools and websites, etc that all claim to be the disruptor of online classified advertising. But if you talk to a consumer regarding these apps and websites, they usually have no idea what you are talking about.
Secondly, my usual response is, “It’s you”, which leads to a quizzical look, followed by a frown and a “please explain”. The fact of the matter is that everything has changed in our industry, yet nothing has.
A seller thinks of selling: they contact an agent, list their home for sale, the agent advertises the home for sale, a buyer wants to buy house, buyer goes to the open home or calls the agent, buyer makes an offer, agent handles negotiation, seller agrees to sell and everyone gets on with their lives. The buyer is happy, the seller is happy and agent pays some bills and makes a living.
The real disruptor will be the agent or business who has the ability to lessen the reliance on the real estate portals – the agent who manages their database well. Recent media reports mention the increase in off-market sales as a classic example of agents who utilise their database well.
How many leads does an agent need? I have never met an agent who does not get enough leads. Most just don’t know what to do with them unless an immediate result is in the offering.
Try these numbers:
- Agent has five listings at any one time.
- Agent does five open homes on a Saturday.
- Agent does open homes every Saturday for 40 weeks a year.
- Agent gets a minimum of five new people through each open home.
Five opens x five attendees x 40 weeks = 1,000 new additions to the database excluding personal contacts, phone calls and referrals. Yep, you read that right. One thousand warm leads by just doing your job.
However, most agents only want to sell them the house they inspected today or get in contact with a person if they think they have something to sell in the next 30 days. I tested the agent follow-up recently and went through 13 open homes over three weekends and I received two call backs. Not one agent asked me whether I had a home to sell.
What about the person who is selling in six months, nine months or even two years’ time? They usually get forgotten about and if they are lucky, receive a Christmas card in the mail at the end of the year. Agents fall into what I call the ‘stumble upon listing mode’. A listing opportunity pops up and they grab it with both hands. It doesn’t appear in a pipeline, they cannot measure quantifiably how they got it and most of the time they chalk it up as a ‘referral client’.
Many agents can tell you a story where a person who bought a property from them, then listed it with another agent for sale within a few short years. They think they are managing their database but usually fall up a new listing out of dumb luck and not by design.
The disrupter is you – if you want it.
The disruptor is you, if you can make the effort to collect their name, phone number and email address.
The disruptor is you, if you demonstrate how being kept informed about properties that are new to the market prior to them being released to the portals will give them an edge.
The disruptor is you, if you care enough to actually call them back after an open home and program your automated database to trigger timely and relevant follow-up emails and texts.
The disruptor is you, if you are able to implement a client appreciation program. Have you sent a thank-you card, have you sent an anniversary card, do you hold client appreciation evenings, do you ask if a client has a home to sell, do you send ‘Just listed’ emails, do you send ‘Just sold’ emails, do you send price reduction emails?
Nothing has changed but the way we do things can change. The disruptor is all that data sitting in drawers, boxes, car boots in the form of open home registers, lost appraisals and past sales registers.
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