What Does It Take For Real Estate Agents to Thrive in Today’s Market?

I was recently asked to speak on this topic at the Inman Agent Reboot Conference on July 12. Intero Real Estate Services CEO, Gino Blefari, Pacific Union International CEO, Mark Mclaughlin and I discussed navigating through the Bay Area’s changing landscape and steps to ensure future success. I have condensed my presentation into the following blog post. I hope you find it helpful.

Discussing the current Bay Area real estate market alongside Pacific Union CEO, Mark Mclaughlin.

“We can’t wait for the storm to blow over; we’ve got to learn to work in the rain.”

-Pete Silas, Former Chairman of Philips

I find great wisdom in Silas’ words when thinking about today’s real estate market. Amidst this recent structural recession, we’ve had to navigate through an age of instability. Economic woes have rattled us to our very foundation.

Change is inevitable. In fact, if you haven’t experienced any change around you, then something is wrong. So the looming question is: what do you need to do as agents to adapt in order to survive this chaotic market?

For decades, the real estate office was simply a place for desks, phones, e-mail and leads — a place to hang your hat, if you will. However, our future looks vastly different. Two types of companies will emerge:

• The Comfort Company: Similar to the historical model, peaceful coexistence is the main measure. This company does not challenge its agents or invest in future technologies. While it may look stable today, its very survival is in doubt. It will be slow to change, if at all.
• The Alpha Company: This is the company that does the “change” work necessary to remain relevant, viable and profitable.  They take the necessary steps to morph into customer-serving knowledge centers. These companies are equipped with the tools, services and servers. And these companies will do better in attracting the Alpha Agent, as well – the agent also willing to adapt, grow and thrive.

The Alpha Company and its agents remain aligned and share the same corporate philosophies, goals and purposes. These survivors have adapted to market forces with complete system overhauls and revamped corporate cultures. The result is improved services and technologies, which include the “Alpha Tool Box.” This keeps Alpha Agents and companies in constant contact with their customers.

Alpha Company Tool Box:

• Strategic customer connected websites. They are in perpetual motion and are driven by consumer needs.
• Automated distribution of listings to all critical listing syndication sites like Realtor.com, Trulia, Zillow, etc. The more distribution points the better.
• CleanOffer gives the client full access and control to search the entire multiple listing service (MLS). The application notifies the agent of the client’s searches, likes, trends and new activity.
• Robust statistical research program (Altos Research) that packages statistical market information into easy to use marketing vehicles (online charts, customs graphs) for e-newsletters, blogs and websites.
• Online transaction management for both the agent and the client (SureClose), allowing them to view real- time transaction documents online, making information transparent.
• DocuSign grants the ability to electronically sign documents of all sizes at any time. It’s a great way to facilitate transactions as quickly and smoothly as possible.
• Disciplined training for social network sites and blogs such as Facebook, Twitter, LinkedIn and more.
• Develop unique content which generates leads via Facebook, personal and corporate blogs, Trulia Voices (discussion groups) – whatever is most appealing to you as an individual.
• Customer Relationship Management (CRM) software like Top Producer, BatchBook and eTacts.

In recent years, new technologically-savvy agents have experienced great success at Alpha Companies (often at the expense of seasoned veterans) by adding value through technology. Customer longevity, old relationships and loyalty are all at risk because the consumer is seeking value above everything else. There are important traits the Alpha Agent needs to thrive:

• Market knowledge expert
• Heighten communication skills
• Committed, available and timely
• Works in harmony with management and aligned with company culture
• Team player
• Tech-savvy
• Inspires trust and is credible
• Accountable
• Makes smart decisions (price, price, price)
• Behaves like an owner
• Copes with change without breaking stride; remains upbeat and always in control of individual moods
• Strong ethical muscle
• Interesting and fun

When one combines the Alpha Company with the Alpha Agent, you create a culture and community of “we.” It is an association by “affirmation,” where all join in calling it “My Company.”

So, ladies and gentlemen, agents and companies, this is the life we’ve chosen. The question remains: through the rain, are you ready to work? And when opportunity knocks, be prepared to answer the call.