As we commence a new, do you know the most pressing issues on the minds of the nation’s real estate agents? The entire year ahead what exactly are they most looking towards in? What strategies do they will have in place to handle inventory issues, technology adoption, agent retention or even to ensure their continued profitability? Better Homes & Gardens® PROPERTY and RISMedia recently teamed up to discover the answers to these and much more questions by way of a survey on “DURING THE NIGHT what Keeps Brokers Up?” Their answers give a detailed map in to the guidelines every ongoing company can follow to success.
The U.S. brokers we surveyed represented a broad swath of company structures, from companies with less than three offices and single digit agent counts to people that have a lot more than 400 offices and 13,000 agents. Respondents’ average a long time was 51-70 and responded from all parts of the national country. Annual sales volume listed by respondents ranged from approximately $650,000 to over $4.8 billion.
Check out this infographic predicated on area of the survey results. Full leads to follow in article following the graphic.
Taking a glance at brokers’ most pressing, high-level concerns, the very best three ‘disruptive to the present property model&rsquo most; were: Direct-to-consumer, online, flat-fee and 100% commission models. The very best three ‘most pressing issues facing the industry’ were insufficient inventory, recruiting and non-traditional competition. Top obstacles to profitability were insufficient inventory, increasing agent productivity and pressure on commissions. Some responses entered in the ‘Other’ category because of this relevant question included discount brokerages, Zillow, many agents too, lead &lsquo and generation;declining market without upsurge in sales volume along with rising labor costs.’
On the main topic of budgeting, brokers listed online technology and marketing as a few of their top investments; included were administrative also, office expenses, labor, rent occupancy, advertising, recruiting and training. ‘Client services’ was the clear winner in what apart sets their firms, showing per tradition that nothing can replace good, old-fashioned customer support. Agent tools, commission and technology structure were the runners up for budget dollars.
Brokers listed their top operational challenges as recruitment of agents, agent business and productivity model competitiveness. Also to the relevant question, “What keeps you up during the night probably the most?” brokers listed recruiting more agents because the top answer, accompanied by home based business models, uncertain economy, maintaining technology, insufficient inventory and housing legislation issues. ‘Other’ answers in this category included: relevance to agents, inspection repairs, Zillow, insufficient agent experience, builders and owners reaching buyers and to generate leads directly.
Is the main element to success organization? One respondent wrote, “I sleep such as a baby because I’m organized.” This may only assist in business—sufficient reason for sleep.
Deeper Dive on the presssing issues
With insufficient inventory rising to the very best of the very most pressing issues, we asked how brokers believe this challenge ought to be addressed. The very best response &lsquo was;increase percentage of new home construction,’ accompanied by ‘better education of clients on rent vs view and purchase of current inventory,’ ‘motivating agents to become more proactive with to generate leads,’ ‘reevaluation of local permit and zoning laws,’ ‘changes to tax structure,’ ‘reevaluation of national housing regulations,’ and ‘creative solutions such as for example manufacture housing.’
Some ‘Other’ responses included: Less expensive and entry-level housing and home-buying incentives. One broker stated, ‘Time will solve the nagging problem.’
In an attempt to garner some insight from brokers within their own words, our survey included several open-ended questions. On the relevant question, “What guidelines are you experiencing in place to make sure your firm and agents remain highly relevant to today’s consumers?” some answers included: Continuing education, communication, staying along with technology, training, brand awareness, quality service, integrity, strong online presence, easy-to-use tools, response time, having the ability to change with the trends, strong pricing and marketing and market knowledge.
We asked for insight into brokers&rsquo also; methods to adopting technology within their firms. Responses indicated it is a high priority primarily, with some needing to outsource IT help along with other larger firms with dedicated in-house tech departments.
Here’s a sampling of broker responses:
“Technology is really a primary focus and something we will continue steadily to put a higher priority on maintaining and implementing.”
“The best priority is absorbing the requirements and skills of our millennials.”
“I really do not feel just like we have to be on the leading edge of technology because most agents won’t anyway use it. More vital that you spend money on technology which makes agents more productive, happier, gives more leisure time and an easy task to learn/implement. You decide once, thorough on-boarding and education is key.”
“Our founder has allocated over $40 million to boost technology for the associates.”
“We’ve a little brokerage This is a challenge to own technology that new agents expect.”
“I outsource everything.”
“We don’t have an IT staff. I handle the company’s technology needs once we certainly are a small brokerage. The implementation of CRM or lead management, developing effective on-line advertising campaigns is becoming too great an activity for the tiny broker who would like to grow their business. It seems we have been entering an interval which will benefit national franchise brands greatly.”
“We have been continually considering improving our investing and technology on upgrading our web page design to attract customers. Growing our Facebook presence aswell.”
“Not the best priority. Much industry focus on tech rather than enough on high-quality too, personalized service itself.”
“Moved to paperless system which includes been working. This makes everyone more productive. Challenge is learning how exactly to utilize the technology and staying along with it. Like marching in a sandstorm &ndash forward; you just excersice and make an effort to pay attention and then those grains of sand that may help you succeed.”
Q. How can you make sure your agents are choosing the technology systems you have set up?
Many respondents indicated that constant education and training is paramount to tech adoption by agents. One-on-one support, sales meetings, using technology that monitors agent tech use and providing incentives were also noted.
“Constantly educate them at weekly staff meetings, using case real-world or studies examples. Following up with agents at quarterly reviews to see what issues they’re having.”
“Education. We’ve literally a huge selection of videos for training on tech systems in addition to a marketing company that assists our associates making use of their online presence and tech skills.”
“Discuss it; demonstrate it and suggest to them how to utilize it personally. Those that don&rsquo still;t adopt…they’ll grow or go either.”
“Offering plenty of courses and one-on-one coaching. We track agents’ production predicated on workshop training attendance.
“My agents are self-employed independent contractors therefore i can set company policies that insure legal and ethical practices but cannot require they complete their tasks in a particular manner. I would recommend marketing and tech classes whenever available, show agents new and old tech opportunities, explain the benefits of using specific tech tools and make myself available if they feel they want help. I take advantage of sugar not just a stick.”
Q. What recruiting efforts can you employ to ensure you’re securing the very best and brightest?
On this topic, brokers stated they depend on traditional face-to-face meetings with new recruits often, personal relationships and peer recruiting. Some use personality tests. Listed below are more insights:
“Personal profile of every recruit to understand how they prefer to work. Tailoring their on-boarding to complement their profile. Using our brands extensive recruiting tools and training to greatly help.”
“I really do my very own recruiting mostly. I try to judge the social individuals who i believe would make good sales associates.”
“We have been very visible in the neighborhood property community, connect to agents regularly. Be at their level rather than on the “broker pedestal.”
“Ongoing monitoring or local agent’s production. Establishing lunches/coffees to access know them better and know very well what their goals are.”
“Upfront sales personality testing. Create an avatar of our ideal agent, use that to interview and evaluate candidates.”
“Hired a full-time recruiting professional to utilize also to hold managers accountable.”
Q. What exactly are your best methods to retaining agents and so how exactly does company culture are likely involved for the reason that area?
Company culture is key to brokers and plays an essential role in agent productivity and retention, and is paramount to profitability also, many stated.
“We take great pride in the culture we’ve developed in the last a decade since opening being an independent brokerage. We only recruit/offer to agents that people feel fit our culture…We make an effort to ensure our agents know we expect everyone to do something ethically and we ask all of them to learn WHY they’re available and what they need from it. We make certain they’re inside it for the proper support and reasons them making use of their needs.”
“Company culture is vital to retaining agents, because the owner of the ongoing company you should be accessible.”
“Frequently checking in with agents concerning how their business and personal lives ‘re going. Showing you are interested and you also care.”
“Maintain a culture of support and concentrate on agent development and growth. Foster integrity, sharing and honesty among agents. Create a cohesive band of independent contractors who be determined by each other.”
“Recognition, incentives, goal setting techniques, accountability – culture is HUGE.”
“Considering adding value to your agents&rsquo always; business through leverage of time through staff, one-on-one coaching, social events, weekly training events, and our culture plays an enormous part.”
“Would go to education again. Culture is paramount inside our brokerage and we spend lots of time and energy in bolstering a culture of support, camaraderie and ethics.”
“You can expect coaching and concentrate on building relationships strongly. We have plenty of office and workshops parties to get a healthy mixture of work hard, play hard.”
“Company culture is crucial. Once we are small, retention is situated upon being associated with each agent’s business.”
“Professional recognition is essential in a ‘sale environment,’ and important has been alert to the agent&rsquo equally; s personal recognition and needs. Hand-written notes to agents work in an environment of impersonal technology still.”
“Developing a cohesive and collaborative culture in the working office. Offering brokers a stylish split threshold, marketing materials, great websites, attorney tons and PMB of educational opportunities cost-free.”
“Freedom, respect, recognition, mentoring/training, and proper compensation.”
We concluded our survey with several questions about new opportunities and what brokers are most looking towards heading into 2018. The entire year ahead include Millennials and first-time buyers the groups where brokers start to see the best opportunities in, along with retirees, move-up buyers, luxury buyers and past clients.
What are brokers most looking towards within their business in the entire year ahead? Many said a continued stable economy, continued sustainable sales and growth, low interest, more inventory, agent growth and increased productivity, increased market share and new partnerships, and technology platforms. Some said these were looking towards retiring in 2018 also.
In their very own words:
“We will be trying a fresh commission structure with this agents/clients with the power of a flat-fee structure for several clients. Also, we will be going for a more vigorous role in upping the productivity of every of our agents.”
“Having new sales associates joining our firm and hoping an uptick inside our local market.”
“Systems, more routine, following blue print and checking the full total results.”
“The spring market when buyers will be ready to move.”
“Understanding another technologies that my company has focused on and putting them in motion.”
“Continuing to create successful agent careers. the marketplace may change, but housing needs will always there be.”
And because we love this&hellip just;
“We have been forming a Golden Girls network of successful women with decades of experience in property that are nearing retirement. Our goal would be to make another 5 years our most productive.”
In addition to looking towards the opportunities ahead in the brand new year, nearly all brokers expressed confidence later on of the housing marketplace. Fifty-seven percent of brokers &lsquo said they’re;optimistic,’ accompanied by 20% have a higher confidence level. Another 20% stated neutral and only 3% said that they had a minimal confidence level in the housing marketplace.
Following the survey, John Featherston, Publisher and ceo of RISMedia said, “While property professionals are cognizant of the initial challenges facing individual offices or localities, this extensive research overwhelmingly found most to be optimistic about opportunities for success in 2018. From company culture to new technologies to a higher confidence level in the housing marketplace overall, the insights bode well for the all together and serve as a resource and road map to greatly help others implement guidelines and set a productive agenda for the entire year ahead.”
Sherry Chris, CEO and president of Better Homes and Gardens® PROPERTY, had this to state: “I have already been fortunate to stay the true estate industry for a lot more than thirty years. Our industry has undergone far-reaching and important evolution for the reason that time: from being broker centric, to agent driven, to consumer centric, also to being consumer-data driven now. Transformational change is really a given in virtually any dynamic industry. Our best advice to broker/owners is definitely to stay centered on the areas of their brokerages that donate to one goal: developing a valuable asset. Strategies vary by company. Competitive pressure varies by market. However, many things are universal: consumers will always seek exceptional service. Agents shall thrive in values-driven, collaborative environments.”
Beth McGuire is RISMedia’s Online Managing Editor. Email her at firstname.lastname@example.org.
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