Consumers expect more information from Realtors®

The culture of real estate needs to change to respond to the new consumer demands, according to Nancy Gardner, a real estate expert and author of The Broker’s Bible: The way back to profit for today’s real estate company.

“This recession has been more than an upending of the housing industry. I can see agents struggling and even an increase in production doesn’t necessarily mean an increase in income in today’s market,” said Gardner, who started in real estate in 1979.

“The big issues lie within the consumer. The consumer has become mistrustful, angry and scared,” she said. “As Realtors®, we’re accustomed to having a baby boomer model relationship with our clients but younger generations are asking more from their Realtors®.”

The way success is measured in the industry has changed, according to Gardner. “Clients want to see real results and measures that translate into benefits to them,” she said.

Gardner said it’s important for Realtors® to market themselves based on:

• Days on market
• Percentage of listings sold versus listings taken
• Percentage of actual sold price as compared to original list price.

“These are the things we need to look at as a real estate industry and market if we’re doing it better than the competition because that’s what the consumer cares about, not what your sales volume was last year,” she added.

“Realtors® who understand and embrace numbers are the ones who will succeed in today’s market,” she continued. “Real estate has to be run as a business. Pay attention to the budget metrics that matter, what they mean and how they impact your bottom line.”

Today’s real estate companies need to provide Realtors® with a comprehensive plan for success that will also take in new ideas and updates based on new technologies and changes in their market and the consumer.

“Consumers expect more information from their Realtors®. We have to give them real information based on statistical data, what affects their ability to buy or sell,” Gardner said. “Preparing agents in this way is how real estate companies provide real value to their associates.”

One of the greatest challenges facing Realtors® today is acquiring the skills they need to be viable in today’s market, according to Gardner. “Understanding they have to acquire different skills is critical,” she said. “What they’ve done in the past isn’t going to work anymore. If they use their numbers, understand the market conditions, understand today’s consumers and act accordingly, they show their value over their competitors.”

For companies, the challenge is to develop strong management. “Many people underestimate the power of a strong manager,” she said. “A strong manager understands planning, brings in new talent, continues to develop the culture, institutes a training program, provides one-on-one coaching and has a technology package that addresses the Realtors®’ needs and consumer preferences.”

“This isn’t going to be an easy transition. It’s challenging but it’s doable,” she said. “The consumer is in charge now and they’re not going to tolerate incompetence.”