relationships Archives - Real Estate News and Commentary

April 8, 2016December 13, 2022

Real estate confessions

“How Working with a Real Estate Agent Benefits You” from rsimedia.com

When asked about their real estate agent, consumers logically list characteristics such as savvy, sharp, and knowledgeable. Some may even describe their agent as efficient, or someone who made the process easy for them. These descriptions usually attest to the agent’s business acumen and typically focus on the agent’s ability to market a home and/or negotiate a contract. However, one trait that is often overlooked is “authenticity.”

And it’s not just in the real estate industry. Authenticity just isn’t the trait that most seem to care about in a sales person. The reason may seem obvious; for most consumers and salespeople, it’s about money. So what role, you may be asking, does authenticity have in real estate sales?

In a recent article, Don Kottick wrote about the need for authentic leaders in the real estate industry (8 examples of authentic leadership in real estate; inman.com; March 17, 2015). Kottick talked about authentic leaders as creating their “legitimacy” through honest relationships. These are individuals who “remain true to themselves;” they are positive, truthful, empathetic, “introspective and aware of their own strengths and weaknesses.” Kottick reminds us that authenticity doesn’t come from what’s learned at business school, but what is gained through life’s journey.

Keeping that in mind, we agents are in an advantaged position. As real estate transactions tend to be associated with life events, we often experience these events as well; sharing in the promise of a new family, the joy of a new baby, the sadness of the loss of a loved one, and even the ambivalence of a divorce. And we spend a good amount of time with our clients, regardless if it is in person and/or on the phone. We become acquainted with who our clients are; we learn their vulnerabilities, and sometimes (whether they know it or not) we also become aware of their “dirty laundry.” Being in such a position, we become trusted advisers if not treated as part of the family (at least for the duration of the transaction).

The nature of the real estate transaction, and our involvement with our clients, places us (real estate agents) in a fiduciary role. Regardless of our feelings (positive or negative) toward our clients, or our personal and financial situation – we are to look out for our clients’ best interests. Unfortunately, many in the industry have forgotten that.

Similar issues about agent competency and ethics were discussed last year in The National Association of Realtors® DANGER report. And although concerns about agent competency and ethics have been discussed for years, the media glommed onto such quotes as “the real estate industry is saddled with a large number of part-time, untrained, unethical, and/or incompetent agents…” as if to say “we told you so.” But the truth is that competency does not guarantee ethical behavior, and vice versa. Additionally, competency and ethics do not assure a positive buying and selling experience for the consumer. The answers, like the issues, are complex; and advancement in the subject is debatable.

Don Kottick’s point, that authenticity is a foundation upon which agent competency and ethics is built upon, is overlooked by many industry leaders, brokers, office managers and agents. Considering authenticity, competence, and ethics together may not only facilitate an environment that creates a meaningful transaction for the agent and consumer; it may also be a response to treating consumers fairly, and putting clients’ best interests first.

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Copyright © Dan Krell

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

October 7, 2015November 23, 2021

Real estate agents getting back to basics and focus on relationships

Don’t be surprised when you’re getting more real estate agent phone calls, or seeing more agents at your doorstep. You may be surprised to know that in this increasingly tech dependent world, agents are getting back to business basics; which is founded in personal introductions, building relationships, and providing personal service.

You see, many real estate agents (like the rest of the population), are realizing the limitations of the internet. What was once the promise of a new market place for products and services has become a super-saturated arena of information, advice, and “content” clamoring for your attention; and is a growing disappointment for many due to the increasing irrelevance of information, not to mention the surge of fraud and hacking.

The National Association of Realtors® (realtor.org) has reported on the growth of internet use in real estate over the last fifteen years in their annual Profile of Home Buyers and Sellers (the 2014 Profile indicated that 92% of buyers “use the internet in some way in their home search process…”). And although the statistic is astounding, it is becoming clear that is still not wholly understood how home buyers and sellers use the internet.

You may not be surprised to know that home buyers and sellers don’t entirely rely on the internet for choosing their agent. In fact, many choose an agent through friend/family referrals, personal introductions, and even serendipitous meetings (such as visiting an open house). Furthermore, buyers and sellers are increasingly aware of the internet’s limitations as well; as one home buyer’s recent statement of “…this home is not what was advertised on the internet…” illustrates the type of misleading information that is often found.

Although many are just waking up to the fact that “point and click” does not sell homes, “big housing data” knows it generates online revenue by capturing your information and selling it to real estate agents, loan officers, movers, and others. Last year’s acquisition of Trulia by Zillow was thought by many analysts to be an industry game changer by merging two of the most visited real estate portals. However, many did not consider that the move was to increase traffic and revenue for two companies that were reportedly not “yet profitable” on their own, by “grabbing a bigger slice of the advertising market” (Logan, Tim. “Zillow Deal to Buy Trulia Creates Real Estate Digital Ad Juggernaut.” LA Times. 28 July 2014.<latimes.com>).

More recently, HousingWire’s Ben Lane reported on Zillow’s downgrade by Barclays (“Is Zillow in Trouble?” HousingWire. 20 July 2015. <housingwire.com>), referring to a slowdown of traffic due to saturation and competition. Months after the major acquisition, growth of the online real estate portal is “slowing significantly.”

Just as the growth of the internet created markets and changed how real estate agents conduct business; personal needs and attentions are changing how consumers view the internet, as well as producing voids left by agents and brokers who heavily relied on the internet for business.

The NAR’s recent DANGER Report misses the mark by highlighting perceived shortcomings in Realtor® ethics and competency. However, the real issue may be more about the lack of professional intimacy; which is necessary for commitment, integrity, and building trust. While some already know it, others are waking up to the notion that the quality of the professional relationship is vital to the consumer’s satisfaction – and it all begins with an introduction.

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July 13, 2011July 28, 2019

The internet: a catalyst for change between real estate agents and their clients

Have you ever thought of how the internet has changed your personal relationships? Before the proliferation of social media on the internet, you may have related to your friends and family much differently than you do today. Whether you know it or not, your relationship with businesses has also changed; banking and shopping seem to be mostly initiated on the internet. And, of course, the internet has changed your relationship with your real estate agent.

Before public use of the internet was commonplace, real estate agents mostly met with their clients in person to review available home listings. Although many used the technology of the day (fax machine and telephone), a face-to-face meeting was still a necessity. As the internet flourished, early adaptations allowed real estate agents to correspond with clients via email (of course those who were sophisticated enough to have an email account).

As the internet evolved, so too did the business of real estate. And while surfing the internet became a regular daily routine (like your morning coffee); MLS services, Realtor® Associations, brokers and real estate agents all tried to capitalize on the latest technologies to capture business.

One could even try to make the argument that technology and the internet was an enabler of a real bubble that would eventually pop. Because house-hungry buyers wanted to be the first know about new listings and be able to present their offer before anyone else, internet applications were developed to adapt to that market need; internet applications were touted to automatically send listing alerts to buyers’ emails and cell phones. The increased use of mobile technologies such as texting and SMS, along with the ability to surf the internet on the cell phone allowed buyers to search homes anytime/anywhere. Tech savvy buyers could not only get notice of a new listing almost immediately, but they could also send an offer to the listing agent without ever leaving their chair!

Of course, many who hastily bought without inspections (or worse- sight unseen), realized that the internet was not a substitution for visiting the home and doing due diligence. The internet has since grown to become the leading source for real estate related information. What was once ballyhooed as the means of procuring clients is now realized as a tool to augment client relationships.

Certainly, the internet has not yet become the replacement for human interaction in real estate transactions. However, for better and worse, the maturing internet has impacted the relationship between the real estate agent and their client. Where at one time, the public solely relied on real estate agents for information; the public now relies on their real estate agent for specialized information and increased personal service. The business of real estate has shifted from selling the idea that real estate agents had the listings and all the related information, to not only selling personal and specialized services to facilitate the real estate transaction – but to assist the public in understanding the overwhelming barrage of data and information by providing meaningful interpretation and implementation.

Much like the effects to other financial industries, the internet has not totally replaced human interaction; but instead has changed relationships. At one time the internet was thought to become the virtual revolution; but in actuality has forced the real estate industry and agents to rethink their function and relationship with their clients.

by Dan Krell
© 2011

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.