The real estate industry is fast evolving with the increase and adoption of technology. This also requires agents who help study real estate’s latest market trends to cater to customers’ needs.
However, the agents often face challenges that, if unattended, are bound to lead to business collapse. Whether the challenges evolve around the environment, government policies, volatile markets, climate change, competition, or technology changes, the possible unintended result they might bring is the same; low sales.
Thus, there is a need to find solutions to these. In this article, let’s check some of these challenges and possible fixes.
1. Coping with Technology Trends
This is a major challenge that real estate agents face in their operations. Why? Today, customers are willing to pay for the exceptional experiences you facilitate. For instance, when customers check for an apartment or a home, they might opt for a virtual tour. This is for them to view and familiarize themselves with their typical house before purchasing.
Additionally, advanced technology like smart technology and iBuyers is ideal for searching the property and the real estate industry. Thus, loss instances will be unavoidable if an agent finds it hard to cope with the advancing technology.
2. Competition from Online Counterparts
Although online listings and homebuyer apps haven’t eliminated the agents, they have provided very stiff competition. Even large real estate brokerages and agents with years of operations find it hard to compete with online property marketers like Zoocasa, Zillow, and Homesnap.
Besides, this competition poses anticipation on the future of real estate:
- Properties buyers and sellers will opt for free ad services rather than digital advertising.
- Social connections will be more effective for finding referrals.
- Millennials will require agents at later stages of buying and selling cycle.
However, to solve this competition, an agent can launch a blog or a neighborhood site where they list up-to-date and relevant local news, events, and businesses. In so doing, you’ll remain competitive, and recognition in search engines will be more straightforward.
3. Having Few Listings
This is yet another big challenge affecting real estate agents. Imagine you went into a shopping store to purchase a vehicle, only to find 3-5 brands! How would the feeling be? Let down, right?
That will be the same feeling for a homebuyer checking for an ideal home. They expect to have a variety of houses to choose from, so they can have their criteria matching house.
That means if a real estate agent runs low on listings, there will be no homebuyers coming. It also means that your agency will be negatively affected with a high chance of shutting down.
What can you do to increase inventory? Besides ensuring you have sufficient listings, you can craft irresistible ads showcasing affordable and desirable neighborhood listings.
4. Not Leveraging Referrals
As you know, referrals are a game in all kinds of business that any investor should be smart at. For instance, if you’re looking to purchase a property, you’ll most certainly depend on testimonies from other buyers rather than the website.
Why? The website contains the process a real estate agent should follow, but it becomes valid only when implemented. About 50% of agents depend on referrals to leverage their revenue and income.
Thus, it is challenging when an agency gets no customers referring others to the website.
Nevertheless, it would help if you aimed not to close deals after a sale. Ensure to stay connected, and build relationships, while nurturing them. Sometimes you can even send personalized messages providing consultation and solutions when required. In response, you’ll gain more referrals and traffic.
5. Difficulty in Following Real Estate Agent Laws
There is no field of operation without rules. You often find the rules unfavorable and inconsiderate with your profits in business.
This is a challenge faced by real estate agents as well. Structuring properties, renting, selling, or even purchasing follows given rules by the government.
The rules aim at improving confidentiality by liaising the buyer with defaults of your property, among other specifications. Besides, it enhances transaction transparency for both parties to experience deserving benefits.
However, despite noting this, some agents assume. But here is a solution you can adapt to ensure you abide by the real estate agent rules:
Start preparing a checklist highlighting that you’ve followed the process before selling out a property.
Additionally, you can find a real estate CRM to help manage your process digitally.
6. Rejection Challenges
The increasing rate of real estate agencies comes with unhealthy competition. This is what makes rejection inevitable and may leave an agency feeling its inability to deliver.
However, get used to this as it forms part of selling and buying real estate properties. Not every customer will accept your offer at times.
Remember, they might be uninterested in the present properties but develop one for the future properties you’ll avail. Just continue connecting with them with cold leads and personalized emails and messages.
7. Property Insurance Problems
With or without knowledge, real estate agents might take up assets that are not eligible for insurance. This may be due to conditions and lack of property transparency.
If the property is highly exposed to various risks, and FHA denies to insure based on their findings, an agent will have to bear the drawbacks. This is so serious that it sometimes puts your deals on hold.
However, like other challenges, a solution to this is provided!
Enhance communication with clients conveying the situation in such a case.
Also, if FHA dictates they can’t insure your property, visit private insurance companies, and you’ll surely be helped.
As the adage goes, ‘the future belongs to real estate,’ yes, it’s the case. However, as shown above, the investment process and the role of agents are often triggered by many challenges. But for enthusiasts, agents with a fine-built strategy will see their agencies growing immensely.
Furthermore, being a real estate agent, you can always reach skilled real estate developers and help you generate more leads by managing your sales process.