INDUSTRY INSIGHTS A REAL ESTATE REPORT FROM

Transcription

1 INDUSTRY INSIGHTS A REAL ESTATE REPORT FROM

2 THE REPORT Staying knowledgeable about what s going on in the real estate industry is key to our ability to offer cutting-edge online courses, and our team includes real estate experts who do a great job of keeping our courses up to date and relevant. We wanted to go a step further, though, and take a more hands-on approach to being aware of what consumers really want. In an effort to stay ahead of industry trends, The CE Shop teamed up with the California Association of Realtors and REAL Trends to conduct an online survey. Between June 20 and July 12, 2018, we polled 1,000 adults aged 18 or older who either bought or sold a home in the first six months of Though the survey asked a large number of questions of its respondents, this ebook highlights eight of the most pertinent areas that we at The CE Shop believe are especially noteworthy for real estate professionals to know. INDUSTRY INSIGHTS PAGE 2

3 WHY IT MATTERS Real estate in the 50s was very different from today s market. Things change, and real estate s such a large industry that it affects and is affected by a huge number of factors. The statistics we outline here matter because they give an unbiased snapshot of the state of the industry in 2018, and we believe they tell a very interesting story about where you should be spending your time. There s no shortage of unverified real estate advice telling you that billboards are dead, robots will replace agents, and young people aren t buying homes. Here, though, is a quick glance at the real state of things, directly from your potential clients mouths to these pages. Soak it in, reflect on it, and then turn it into actionable growth for your business! INDUSTRY INSIGHTS PAGE 3

4 DID YOU USE A REAL ESTATE AGENT TO ASSIST YOU WITH ANY OF YOUR REAL ESTATE TRANSACTIONS? YES 90% NO 10% In the last year alone, Zillow, Amazon, and Airbnb have all edged into the real estate game in unique ways. They re all convinced that our industry s antiquated and needs a shake-up, and many people reacted to this news by proclaiming that the real estate agent s job is no longer necessary. Well, here s proof that consumers don t agree. As thorough as our study was, we can t possibly predict how people will buy and sell real estate in five or ten years from now - but we can confidently say that today, right now, agents are still essential. A whopping 90% of our respondents used an agent at some point in their transaction. INDUSTRY INSIGHTS PAGE 4

5 THE PROCESS OF BUYING A HOME IS EASY TO UNDERSTAND. THE PROCESS OF SELLING A HOME IS EASY TO UNDERSTAND. STRONGLY DISAGREE: 10% NOT AT ALL SURE: 1% STRONGLY AGREE: 21% STRONGLY DISAGREE: 8% NOT AT ALL SURE: 6% STRONGLY AGREE: 20% SOMEWHAT DISAGREE: 21% SOMEWHAT DISAGREE: 19% SOMEWHAT AGREE: 30% SOMEWHAT AGREE: 26% NEITHER AGREE NOR DISAGREE:18% NEITHER AGREE NOR DISAGREE:21% Results are mixed on both of these questions, which is no surprise to anyone who s been in the industry for a while. The bulk of respondents seemed to fall somewhere in the middle, and very few of them felt totally sure they understood the entire buying or selling process. This is good news for agents! Not to purposefully keep your clients in the dark, but their uncertainty is an opportunity for you to demonstrate your expertise and better serve as that guiding light that they re looking for. INDUSTRY INSIGHTS PAGE 5

6 WHEN YOU WERE LOOKING FOR YOUR REAL ESTATE AGENT, HOW IMPORTANT WERE EACH OF THE FOLLOWING TO YOU IN MAKING YOUR FINAL DECISION? TOP: EXTREMELY / VERY IMPORTANT BOTTOM: NOT THAT / NOT AT ALL IMPORTANT REFERRALS FROM PEOPLE I TRUST 69% 8% FINDING AGENTS THAT HAD LISTINGS SIMILAR TO WHAT I WAS LOOKING FOR 64% 12% LOOKING AT WEBSITES WITH RATINGS OF AGENTS PERFORMANCES 62% 15% HAVING A PERSONAL RELATIONSHIP WITH THE AGENT 57% 21% BEING A MEMBER OF A REALTOR ORGANIZATION 52% 22% HAVING USED THE AGENT IN A PREVIOUS TRANSACTION 41% 34% Comparing the top column to the bottom, you can see the differences in what people thought was important vs. what was not. Referrals from people I trust makes the top of the important list and also the bottom of the not important list, which pretty definitively shows that referrals still reign supreme in real estate. On the other side of things, Having used the agent in a previous transaction makes the bottom of the important list and also the top of the not important list. This goes to show that you can t count on repeat business just because you successfully closed a deal with someone. INDUSTRY INSIGHTS PAGE 6

7 WHAT WAS THE TYPICAL RESPONSE TIME THAT YOU EXPECTED FROM YOUR AGENT TO RETURN ANY FORM OF COMMUNICATION? DON T KNOW: 2% ALMOST INSTANTLY: 4% BETWEEN FOUR HOURS AND ONE DAY: 23% WITHIN TWO HOURS: 24% WITHIN 30 MINUTES: 16% WITHIN AN HOUR: 31% It should come as no surprise that homebuyers want answers fast. Most agents know this, which is why they re practically attached to their phone at the wrist. This question shows that almost no one (4%) expects an instant response, but even less people don t know when they d like a response. The majority seem to agree that an hour or two is a reasonable response time. Depending on how hot your local market is, a rapid response time might be crucial to closing the deal. INDUSTRY INSIGHTS PAGE 7

8 WHEN DECIDING WHICH AGENT TO WORK WITH, HOW IMPORTANT WAS THEIR EDUCATIONAL BACKGROUND? EXTREMELY / VERY IMPORTANT / IMPORTANT: 73% NOT THAT / NOT AT ALL IMPORTANT: 27% EXTREMELY IMPORTANT: 13% VERY IMPORTANT: 28% IMPORTANT: 32% NOT THAT IMPORTANT: 23% NOT AT ALL IMPORTANT: 4% Consumers do care where you ve come from. They expect you to know the ins and outs of real estate, and they value your overall education more often than not. Few people marked education as extremely important but even less marked it as not at all important. Everyone likes seeing an office plastered in diplomas and certificates, and homebuyers seemed especially calmed by knowing they were in good, educated hands throughout their transactions. INDUSTRY INSIGHTS PAGE 8

9 BEFORE YOU MET WITH A REAL ESTATE AGENT, WHAT RESEARCH, IF ANY, DID YOU DO BEFORE YOU HIRED THAT AGENT TO HELP YOU WITH YOUR REAL ESTATE TRANSACTION? TALKED WITH PEOPLE WHO REFERRED THAT AGENT TO ME 60% Not surprisingly, referrals are still king - though internet searches aren t far CHECKED REAL ESTATE SITES behind. This question ends with Please select all that apply, and it doesn t take 59% much to see that the percentages add up to a lot more than 100%. This means CHECKED THE AGENT S PERSONAL WEBSITE most consumers did one or more of these to find their new agent, so it s in 49% your best interest to be anywhere and DID A GENERIC ONLINE SEARCH USING SITES (E.G., GOOGLE, BING) TO CHECK THEIR REPUTATION everywhere you think your future clients might look. 47% CHECKED THE AGENT S BROKERAGE WEBSITE 46% CHECKED SOCIAL MEDIA SITES (E.G., FACEBOOK, INSTAGRAM, TWITTER) 34% CHECKED PROFESSIONAL NETWORKING SITES SUCH AS LINKEDIN 33% SOMETHING ELSE 4% DID NOT DO ANY RESEARCH BEFORE HIRING 6% Just because you don t see a lot of traffic to your site, or many interactions on Facebook, doesn t mean you should stop your efforts there. Your next client might pop by to see if you re trustworthy, and if all they find is a single Instagram post from three years ago, they might keep looking. INDUSTRY INSIGHTS PAGE 9

10 BASED ON YOUR INTERACTIONS, WHERE DO YOU SEE THE GREATEST NEED FOR DEVELOPMENT FOR REAL ESTATE AGENTS? NEGOTIATION 89% MARKETING / MARKET ANALYSIS 18% TECHNOLOGY 16% SPECIALIZED TRANSACTIONS (VETERAN, GREEN HOME, SENIOR BUYERS, ETC.) 14% CONTRACTS / LEGAL 12% Nobody likes the mountains of paperwork when they close a real estate deal, but even more crucial in the eyes of a consumer is the ability to negotiate. They want their agent to be able to market their home, and they d love it if you could employ the latest technology for great results - but far and away, consumers want their agent to be able to effectively negotiate the price and terms. DON T KNOW 11% OTHER 3% INDUSTRY INSIGHTS PAGE 10

11 HOW IMPORTANT WERE EACH OF THE FOLLOWING SERVICES YOUR REAL ESTATE AGENT MAY HAVE PROVIDED FOR YOU? TOP: EXTREMELY / VERY IMPORTANT BOTTOM: NOT THAT / NOT AT ALL IMPORTANT ASSISTED IN NEGOTIATING THE BEST PRICE TO BUY AND/OR SELL 89% 1% PROVIDED A LIST OF HOMES TO LOOK AT 83% 4% PROVIDED A MARKET ANALYSIS OF COMPARABLE PROPERTIES 77% 5% EDUCATED ME ON THE PROCESS OF BUYING AND/OR SELLING A HOME 76% 7% PROVIDED INFORMATION ABOUT NEIGHBORHOODS, SCHOOLS, AND CRIME RATES 75% 7% INDUSTRY INSIGHTS PAGE 11

12 HOW IMPORTANT WERE EACH OF THE FOLLOWING SERVICES YOUR REAL ESTATE AGENT MAY HAVE PROVIDED FOR YOU? TOP: EXTREMELY / VERY IMPORTANT BOTTOM: NOT THAT / NOT AT ALL IMPORTANT PROVIDED A MARKETING PLAN FOR SELLING MY HOME 75% 8% REFERRED ME TO OTHER SERVICE PROVIDERS SUCH AS INSPECTORS, TITLE INSURANCE PROVIDERS, ETC. 71% 6% SET UP AN AUTOMATED SYSTEM THAT SENT ME INFORMATION ABOUT HOMES THAT MATCHED MY CRITERIA 63% 14% REFERRED ME TO A LENDER FOR MORTGAGE FINANCING 58% 17% Just by comparing the percentages for each topic s important vs. not important percentages, it s easy to see that consumers appreciated almost everything their agent did for them. The highest consensus of a not important topic was a measly 17%, whereas the lowest important topic is 58%. This shows that you can never do too much for your clients, and they appreciate even the small stuff. As shown earlier, many homebuyers and sellers are a bit bewildered by the real estate process, and in the heat of the moment they may not think about the local schools or crime rates. Your job as their agent and confidante is to translate their needs and wants into a property they can purchase and move into. INDUSTRY INSIGHTS PAGE 12

13 CONCLUSION Surveying 1,000 people who recently engaged in real estate transactions can shine the light on a lot of actionable knowledge, but where to start? First of all, don t ignore your education. Gaining your client s trust starts with knowing your stuff, and nothing can replace a solid head full of facts and tried-and-true skills. Consumers want you to negotiate, but they re also looking to you for guidance throughout the entire process. Many of them are a bit lost during the buying or selling of a home, and even if they know exactly what comes next, having you there to confirm their suspicions will never hurt. They re making some of the largest financial decisions of their life, after all. On that note, basically nothing you do will hurt. It s clear that buyers and sellers are still overwhelmingly using real estate agents in their transactions, and they appreciate every little thing you might bring up during the process. Use your expertise and experience to shine the light on something your client might not have thought about. Just as you can t provide too much to your clients, you also can t be in too many places, particularly on the internet. It used to be that agents would plaster their face across billboards and bus benches, but nowadays it s all about websites and social media. You don t need to put your whole life out there, but sharing of successful transactions can only make you look more trustworthy. With some key stats to add to your bank of knowledge, you re ready to take the next step. Fill in those gaps you ve been neglecting, make sure everyone and their dog knows you re ready to work, and start closing deals! INDUSTRY INSIGHTS PAGE 13

14 ABOUT US Founded in 2005, The CE Shop has become the leading provider of online real estate education through hard work and an encyclopedic knowledge of the real estate industry. Our ever-expanding catalog of Pre- Licensing, Post-Licensing, and Continuing Education courses are trusted throughout the industry and offer agents across the country the education they rely on. With courses available in all 50 states and DC, we re driven by a desire to constantly improve, both for ourselves and for our students. INDUSTRY INSIGHTS PAGE 14

15 LEARN FROM THE BEST SAVE 20% ON INDUSTRY-LEADING ONLINE COURSES! PROMO CODE: HARRIS20 INDUSTRY INSIGHTS PAGE 15