Aside from the costs of starting a career in real estate, prospective agents benefit from facing up to the biggest challenges real estate agents face today. Next to technological advances and online trends, even climate change is exerting some influence on the industry. Some of these problems typically affect real estate agents and brokerages equally. Some are unique to the solo work you will have to do. So, let’s take a closer look at the challenges and possible solutions.
The equation is straightforward: Without the goods, you don’t have income. And the real estate market today suffers from a pronounced shortage of inventory. Even experienced realtors may struggle to find affordable listings in this climate, which is one of the biggest challenges real estate agents face today.
Hence, if you are considering starting a career in real estate, it might be prudent to do it in spring or summer. These times of the year are better for establishing your real estate business because most people tend to move or sell their properties in these seasons. Furthermore, you will be able to break the ice and score your first sale more easily.
The logical solution to this problem is to make an effort and expand your online presence. You are more likely to approach sellers and score more listings if you do it through a referral program. Especially if your reputation and experience are still lacking. Referrals are the easiest method of getting leads in this business because most people first go online when they want to hire a real estate agent.
Apart from making the most out of your website and online offers, you can also interview satisfied customers and post the conversation on your blog. Prospective sellers will be able to rely on the testimonials and make a more informed judgment on your services and capabilities. You could also collaborate or advertise local businesses on your website if possible. In exchange, they can spread the word about your business to their customers. In this way, you both benefit from mutual exposure to potential clients.
A related issue concerns the affordability of the properties on offer. Many millennial’s are investing in real estate in recent years as they start their own families. However, older generations are not as eager to move out of their entry-level properties. As a result, good, affordable listings are hard to come by.
As a real estate agent, this poses a problem with not too many long-term solutions. For this reason, you should do your best to advertise your services relentlessly. In this way, you will be increasing the chances of sellers with good properties approaching you rather than the other way around.
Crumbling infrastructure is putting off buyers
It is not only the inventory itself that is presenting itself as a challenge to real estate agents out there. It is also the environment that surrounds the properties on sale. Some estimates show that the US government will have to invest a staggering $4.5 trillion by 2025 to repair the crumbling infrastructure and improve the living quality of its residents. This includes roads, bridges, sidewalks, dams, and other structures of importance.
Bad infrastructure can definitely affect the demand for real estate in your area. On the other hand, it might be favorable in that you might get your hands on inventory as people decide to relocate to better neighborhoods. So, in a way, this might be a blessing in disguise if you play your cards right.
Furthermore, if you encounter this problem, it helps to expand your area of influence onto up-and-coming neighborhoods in the early days of your business planning. You must have a viable expansion plan – in that sense, good organization of your business is paramount. Make sure you file and store the paperwork tidily, potentially in a safe storage unit to protect important documents from losses and potential damages. When you keep important papers in order, you will be able to deal with complaints, remarks, and lawsuits without any hiccups.
Keeping up with the latest trends
As you acquire properties you can sell, you should explore how home staging can raise the property’s value. Home staging plays a vital role in attracting buyers and getting good offers. Your role as a real estate agent is to stay informed about popular design trends to stay on top of your competition. So, make sure you identify the characteristics that attract attention to listings and advise your clients to apply them.
How do you attract leads? By making use of the latest advances in the field of online marketing. Your social media and websites should implement:
- the latest SEO practices,
- advertising trends,
- quality pictures and videos of the property,
- detailed and accurate descriptions of the property,
- legal terms, disclosures, conditions, and all relevant information,
- attractive visuals.
To keep your website up and running, it makes sense to consult an IT company that offers live customer support. This will enable you to locate and eliminate any problems with functioning immediately. Losing even a single inquiry is a loss of profit, so it makes sense to invest money into flawless website design.
Finally, one of the biggest challenges real estate agents face today is establishing themselves as expert agents in a certain niche. You need to make an assessment of the market and capture what drives sales in order to choose your niche. So, you might build your niche by endorsing homes with smart home tech or climate-friendly home features. Hence, you should shape your offer and rhetoric depending on the neighborhood and the typical wants, needs, and preferences of residents of that neighborhood.