Through diversified, first hand participation, we identified flaws within our industries modern systems, services, and common practices. We looked to the data and focused on the facts to develop a team capable of delivering on the demands of today, while re- instating classic values of the past.
Expanding on key data revealed to us 4 major problems within our industry; Technology, Education, Transparent Incentives, and Service.
Use and implementation of technology is lacking in our industry, but the existence of it has deprived consumers and real estate professionals the classic values of top notch service through relationships built to last a lifetime. Simple technology has revolutionized the world through self automation and de personalization in efforts to save time, work smarter, and sell more.
With a staggering 73% of home owners more likely to list with a realtor who leverages video to market the property, only 10% of listing brokers effectively do. Listings featuring drone photography sell, on average, 68% faster than those without. We know that new ways of marketing work, and they help guarantee the listing, why don’t we see these added benefits commonly practiced and passed to the consumer?
The median age of a realtor in the United States is 54 years and the number one challenge 45% of brokers report is keeping up with technology. Realtors with 4-10 years of full-time practice average an annual income of $63,595 while brokers with 11- 25 years average $101,633 annually. Realtors earning $100,000 or more in commissions, are more than twice as likely to use advanced technology in comparison to realtors who earn less. Remarkably, 90% of sales are procured by 10% of brokers.
Our takeaway is simple; most business is procured by seasoned brokers with strong market presence, accompanied by limited incentive to implement new technology, as 43% of our sellers market is solely comprised of “baby boomers”, who also have difficulty understanding the benefits of today’s technology.
While our sellers market may not be overly concerned with implementation of modern marketing, our buyers certainly are! As of 2018, Millennials made up 37% of residential buyers. One third of buyers in 2019 were purchasing a home for the first time. Millennials, and most first time home buyers, are a digitally based generation with new values and instant capabilities. From grocery shopping, dating, making large financial investments, and milestone life choices, they do it online and back it with Alexa’s guidance and information on demand. Accordingly, 43% of millennials relocate solely for a job, making them today’s largest migrating demographic in addition to residential buyers. 28% of home buyers under the age of 29 plan on being in their new home for less than 5 years, and this comes at no surprise considering the average millennial holds the same job for only 3-4 years. The average home seller cashes in 29% of their equity at closing and 39% utilize these proceeds to finance their next purchase. Generational differences aside, today’s buyer searches independently for an average of 3 weeks before engaging a realtor for assistance. The American dream of a lifelong home and forever job with company loyalty has evolved and it’s glaringly apparent.
It’s all in the data, and the data tells us we have an ever growing demand for extensive marketing when it comes to getting the listing, attracting the buyer, and obtaining top dollar.
Pursuing a career as a realtor requires a heavy gamble to beat the odds, as 50% of new agents drop out in year one, preceded by another 50% drop rate in year two. In short, most realtors are dead in the water based off numbers alone. Many franchised brokerages implement standard nation wide programs built to appeal to the anxious rookie through the use of outdated, ineffective, and irrelevant business models. The problem isn’t necessarily the lack of education, rather a lack of practice and implementation of modern strategies and solutions. Obtaining credibility requires continuous education and frequent experience in this rapidly evolving industry.
Consumers are only as educated as their realtor. Twenty percent of realtors have been licensed for
less than a year, and 90% of business is procured by 10% of licensees. Statistically speaking, this tells us most realtors do not have the education or experience to properly expand on their client’s needs to deliver an optimal outcome safeguarded by individualized strategy.
34% of buyers will not rehire their realtor, and we aren’t surprised. Given that 37% of buyers are purchasing for the first time, it is reasonable to assume they are unaware of which qualifying questions to ask when interviewing realtors, as 41% of buyers select their agent via personal recommendation and 68% of buyers elect to engage the first broker they interview. As for our baby booming sellers, 75% list with their first prospect, failing to inquire what modern marketing technologies their broker will or will not offer to target the largest market; millennials. Even worse, the average listing agent will likely fail to offer these necessary services because they don’t understand the technology or importance thereof.
Education and experience are equally lacking with both the seasoned agent and average rookie, just as much as the consumer.
The SevSells team starts with the realtor and our belief in quality over quantity. Contrary to common belief, and most team models, we see the value in elite numbers, because numbers do matter, they just matter in a different way to us. The standard team model operates on the necessity of a simple numbers game. For those of you who do not know, everyone gets a piece of the pie. Realtors work to earn the business, while the team sits back to collect a percentage of their commission, which can run upwards of 60%. In other words, today’s average team is geared to appeal to the masses of their niche market, realtors; focusing on company margins, not the consumer, or quality of the broker. While others have perfected the art of false advertising through outdated education and technology in efforts to play the game of dog eat dog, we have perfected the art of providing true value and properly guided incentives to deliver a better realtor, held accountable by a better team.
Most realtors don’t know what they’re doing and that’s a problem… After all, there’s good reason realtors sit on the top 5 list of least trusted professionals. While many factors contribute directly to this…… Read more
In an Industry where transparency is everything, we have come to find it hard to come by, or unfortunately abundant. Realtors proudly sit on the list of top 5 least trusted professions, and it’s no wonder why… Read more
Finally, we addressed the topic of service, poor service to be specific. Technology, Education, and transparent incentives all flow through service…. Read more
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