The real estate industry is undergoing a seismic shift following a recent federal jury ruling against the National Association of REALTORS®(NAR) and major brokerages. This landmark decision, which held agents accountable for artificially inflating commissions, could result in damages of nearly $1.8 billion, potentially reaching over $5 billion.
This development may seem daunting, but it presents an opportunity to transform the industry for the better. REALTORS® across the US now find themselves at a crossroads, having to defend their value to millions of Americans who question whether agents are no longer needed.
Real estate transactions are adversarial – each side deserves representation. In a high-stakes negotiation for the largest investment of your life, wouldn’t you want a licensed professional to represent you? REALTORS® can help buyers understand their needs, negotiate on their behalf, and manage the complex home-buying process.
In the age of the digital real estate market, REALTORS® who focus on building relationships with clients, providing expert guidance, and negotiating on their behalf will be the ones who succeed. We believe that by embracing change and transforming their role, REALTORS® can continue to play a vital role in helping Americans buy and sell their homes.
The Winds of Change Are Blowing
The real estate industry is undergoing a transformative shift, fueled by technological advancements, shifting consumer behavior, and a demand for increased transparency. The emergence of property tech solutions, data analytics, and alternative business models is challenging traditional norms, creating a space for innovation and efficiency to flourish.
Amidst this transformative wave, real estate agents now find themselves at a crossroads. They must either adapt or risk becoming irrelevant. The recent legal developments have only highlighted the need for agents to earn their clients’ trust more than ever before. Staying relevant in this new landscape requires an update in approach. Agents must incorporate their clients into their process, providing them with the transparency, expertise, and guidance they need to make informed decisions.
Here are a few specific ways that agents can adapt to the changing real estate landscape:
- Embrace technology. Property tech solutions can help agents streamline their workflows, automate tasks, and provide their clients with a more seamless experience.
- Build trust and transparency. There’s a common misperception that agents’ work ends when a property goes under contract. In reality, the work is just getting started. By showing clients what goes into contract-to-close, agents can demonstrate their value and expertise. They can also help to manage client expectations and reduce stress during this critical time.
- Become a trusted advisor. Rather than simply being a transaction manager, agents should strive to become valued advisors to their clients. This means providing them with the knowledge, support, and expertise they need to make informed decisions throughout the buying or selling process.
The real estate industry is changing rapidly, but agents who are willing to adapt and embrace change will continue to thrive.
How Can We Bridge the Gap Between Agents and Clients?
One way to bridge the gap between agents and clients is to embrace technology. Forward-thinking real estate professionals and companies are using technology to streamline processes, redefine their roles, and meet the demands of the modern market. Virtual tours, blockchain-based transactions, and other innovations are transforming the way properties are marketed, transacted, and managed. Those who have adapted to these changes are reaping the rewards.
To further bridge the gap and help clients grasp the essential role of real estate agents, it is vital to rebuild trust. The recent legal developments have highlighted the need for agents to act quickly and educate the public about the complex and nuanced work that goes on behind the scenes of a real estate transaction. This requires a new approach to client engagement, one that is based on transparency and collaboration.
A New Approach to Client Engagement
The recent legal developments in the real estate industry have highlighted the need for agents to take a new approach to client engagement. The days of being a gatekeeper to information and resources are over. Today’s clients are savvy and informed, and they expect their agents to be transparent and collaborative partners.
So, how can agents rebuild trust and forge stronger relationships with their clients? Here are a few tips:
- Provide real-time updates on market activity. Use social media or email marketing to share new listings, price changes, and other market news with your clients.
- Offer virtual tours of properties. This is a great way to give clients a sense of a property without having to travel to see it in person.
- Use video conferencing for meetings. This can be a convenient and time-saving way to stay in touch with clients who live far away or have busy schedules.
- Offer a client portal. This gives clients a central place to access all of the information they need about their transactions, including documents, contracts, and timelines.
By embracing these principles of transparency, collaboration, and technology, agents can build stronger relationships with their clients and earn their trust.
The real estate industry is at a crossroads, but it is also an opportunity for transformation. By embracing technology and redefining their roles, real estate agents can position themselves to thrive in the evolving market. By rebuilding trust and providing clients with a transparent and collaborative experience, agents can demonstrate their value and continue to play a vital role in the home buying and selling process.
Real estate agents– it is time to embrace a new approach to client engagement. ListedKit provides a suite of tools that can help you build stronger relationships with your clients and earn their trust.
With ListedKit, agents are empowered to:
- Automate real-time updates on the progress of transactions
- Share documents and contracts with clients securely
- Collect signatures electronically
- Offer clients a personalized portal to access all of the information they need about their transaction
Schedule a demo of ListedKit today and see how you can improve client engagement and earn your client’s trust.