The world is changing with the times, and no place is that more apparent than in the real estate industry. More and more people are choosing to sell their homes without the help of an agent, but will this trend continue? Will real estate agents become extinct?
Some feel that technology has already passed them by, making realtors obsolete. However, others say there’s still a market for both sides of the fence. They believe that new technologies have just made it easier for everyone to do their jobs better. What do you think?
Will Real Estate Agents Become Extinct
We guess it won’t disappear at all! However, in all industries where agents exist, they are gradually disappearing with modern, advanced technology. An agent needs no special skills, only the ability to communicate with a large number of people, take positions, engage in negotiations, and demand compensation for “acting on behalf of the client.”
In the entertainment, sports, hospitality, tourism, and even social service industries, agents play an important role in getting work and improving their clients’ situations but often make their jobs more difficult.
The same certainly goes for real estate agents, as the lack of an exclusive contract between client and agent makes the industry slow from start to finish. However, let’s discuss is further:
Many in the real estate industry are hoping that brokers and the commissions they receive will disappear. This is because online platforms allow for better research and direct communication with sellers.
Ironically, platforms are currently the biggest obstacle in this regard. But real estate agents are far from disappearing, and technology is helping them. For example, many have learned to use social media to increase sales and get more clients.
Why Do Agents Still Exist?
Here are a few reasons why agents are still active.
The post-bankruptcy world is more complex:
The collapse of the real estate market, subsequent tightening of lending conditions, and the increase in foreclosures and short sales have made it difficult for the average real estate agent to sell without the help of a professional.
For example, when securing financing and negotiating complex contracts, you don’t have to do everything yourself.
The internet increases productivity:
When buyers search online to find the homes they want, agents spend less time setting up showings.
They can then help close the deal and pay the same fees.
Some sites, like Redfin, offer lower fees for less intensive services, but Redfin has also decided to expand its basic model to allow more showings and higher fees for buyers.
That could change with services like Jason’s House, where brokers can make offers to buyers by providing some specific details.
The internet increases brokers’ influence over agents:
In most states, agents must be a brokerage firm, such as Re/Max, Long & Foster, or Coldwell Banker. But if they can advertise online, they don’t need that income.
To adapt and increase their value, brokers are downsizing their offices. More and more brokers are working from home instead of the office and offering training on how to work in different market conditions, such as for investors and mortgage brokers.
People still don’t trust cheap products:
Buying a home is a big decision, and people don’t want to risk getting an agent with underpricing, so they don’t negotiate much for the underpricing or premiums.
Will Housing Market Change in 2021?
There is no question that the housing industry has changed and that 2020 has forced people to focus on the key factors of safety, community, and financial security. One of the most obvious changes is the shift from large 24-hour cities to smaller towns and more remote states.
People can now also work from home, and they are free to explore new places. Convenience and safety are now top priorities.
People want to live where they want to live, not where they have to live.
As a result, neighborhoods are changing, and suburban areas are growing. As a result, the rental housing market has also changed as tenants seek healthier housing.
Will there be a Housing Boom in 2022?
Many expected the housing market to slow down in 2020 due to the pandemic financial crisis. But, surprisingly, after an initial drop, the market rebounded in the third and fourth quarters.
In August, home sales were up 45 percent compared to the same period in 2019. The increase in new home purchases is partly due to suburban markets as people move out of expensive and crowded cities.
Given the low mortgage rates during the pandemic, this market will continue to grow in 2022.
More importantly, demand is increasing while supply has been decreasing for some time.
Leading real estate brokers now predict that demand will double by 2019, while supply will be two-thirds less than it is today.
Combining these factors has already resulted in a 15% increase in home prices, and this trend is expected to continue through 2022. Thus, although mortgage rates are expected to rise, the sector is expected to show good growth through 2022.
Will the Housing Market be Weak in 2022?
You may be wondering if 2022 is the right year to enter the housing industry. The truth is that the chaos and unpredictability of 2021 will be interesting for the housing sector as people adjust to it. However, this means that those willing to embrace change and work harder will have more opportunities.
Rising real estate prices and faster turnover mean more opportunities for everyone, including those just entering the market.
How to Increase Real Estate Job Security
Four key strategies and tactics help agents retain their jobs:
- Early adoption and integration of new technologies.
- Adopt new technologies early and adopt new technologies.
- Reduce operating costs and customer acquisition costs to increase profit margins.
- Focus on personal attention and professional service.
- It is also helpful in identifying people who may need real estate services in the future.
- Experienced buyers and sellers can try it for themselves.
- Newcomers to real estate can quickly feel lost and need help.
- Luxury real estate sellers who value service and privacy are less likely to go it alone, despite the many technical tools and apps available online.
How Should Real Estate Agents Prepare for 2022?
The market needs to prepare for the ups and downs that the New Year may bring. Despite the vaccinations, it will be long before people feel secure enough to return to normal life.
More importantly, the high demand is not expected to last all year. Last April, some experts predicted a drop in sales. You can solve this problem by developing strategies to attract buyers and sellers.
As a real estate agent, you must be willing to use technology to make your job easier.
Despite anecdotal evidence, the use of social media and online platforms has already contributed to an increase in home sales, with real estate agents using 3D technology to preview open houses.
Best way for Realtors to network
Connecting with clients is a priority for most real estate agents and real estate sales companies. If you are an agent, you will get many calls from sellers who want to sell you the next best online marketing platform.
Many online marketing portals offer information on various agents, and many online buyers and sellers are trying their hand at it. Their inner circle of influential friends and family members is a concept that every real estate agent should know. Your circle of influence can also include your former clients, who become your friends or followers when they see that you are good at what you do.
Old-fashioned service delivery and people contact is the best way to make money in real estate.
Frequently Asked Questions
Are our real estate agents becoming extinct?
Despite technological advances, real estate agents must minimize the risk of fraud.
Is it worth it to become a real estate agent in 2021?
Working as a real estate agent in 2021 offers many opportunities.
Despite significant changes, the market will continue to grow.
With the right training and commitment, agents can manage and succeed.
Why do real estate agencies still exist?
Real estate agents are still in the market because buying a home is probably the most expensive thing you will ever buy.
A good real estate agent is always valuable.
A good real estate agent knows the area, has a good idea of what the house is worth, and can give valuable and thoughtful advice.
Who is the final authority on the property?
Corporate Property Managers
How hard is it to find a job as a real estate agent?
The amount of work you get depends on you and your approach to finding clients.
Working as a real estate agent offers many opportunities. Despite significant changes in recent years, this market is still growing. With proper training and treatment, agents can thrive in this new environment. So, this field is real far from disappearing.
Sheena Whitlock, a property expert, and blogger with over 15 years of experience in the field. The knowledge and skills Sheena has acquired during her career have given her invaluable insight into the property management business.
She has done her Property Development BSc (Hons) from the University of Portsmouth and completed her Master’s Degrees in Property Management from the University of Chicago.
As a professional, she has spent time working for various companies as a property management officer and currently works at Asset Info Hub where she shares her knowledge and experience on various property matters with people around the world, questioning their queries via blogging and virtual consulting services.