How Do You Handle Disruption in the Real Estate Industry?
I had a conversation with a real estate professional a few months back. We were talking about how disruptions in the real estate game are transforming the dynamics of the playing field.
Sure, optimal client care and relationship-building are part and parcel for success in the industry, but there’s actually something that’s more crucial beneath the surface of it all.
Change is constant in business, and this is true in the real estate market as well. Disruptions can offset previous gains and put your overall business goals on shaky ground.
Seasoned real estate professionals know better than to stay static. In an ever-changing business landscape, it’s important to Pivot and Adapt in order to thrive and remain competitive.
Just like in basketball, we were taught that movement is everything. We can’t score points without maneuvering around the court and breaking defensive traps. We have to change our strategies when things aren’t going the way we expected.
One way to secure our gains in such an uncertain market is to open up multiple income streams. This comes as technological forces are putting pressure on the competitiveness of real estate brokerages.
Confronting the challenges
The Federal Trade Commission and the Department of Justice have outlined the hurdles in the residential real estate sector.
Before, buyers and sellers would deal directly with brokerages to accomplish their objectives. As technology keeps evolving, we are seeing this all too familiar landscape eroding. Consumers depend more on apps and other types of technology to make market comparisons on their own. Apart from that, they search for new listings, compare prices, and go on virtual tours.
In light of these challenges, the FTC and the DOJ have organized a workshop that addressed the need for real estate professionals to adapt to new technologies and understand policies that are putting pressure on competitiveness.
Sure enough, professionals will also need to put more focus on finding opportunities elsewhere, and not just in the niches they serve.
Exploring outside your niche
It’s very crucial for real estate professionals to diversify their portfolios and change the way they do business.
Overcoming disruption is about opening yourself up to other opportunities within your field. In this sense, you will have to be ready in branching out to other areas in the real estate sector.
Other real estate career options include investing, multifamily syndication, property development and management, and commercial assets.
Still, you will have to be cautious when you’re wading through unfamiliar territory. For this, ample research on these sectors is vital to making full use of the resources and capital you have at hand.
Then again, if you have been in the residential market as a broker for quite some time, you may as well hold on to this niche and see what else is there to extract from it.
For this, you will have to look at the bigger picture and determine the trends that are shaping the market landscape. One of these is social media which, as we already know by now, has become crucial to success.
Leveraging the power of social
You can never build a successful business without social media. People nowadays would rather transact online. This makes for a perfect reason for agents and brokerages to invest in effective social media marketing.
Outreach has always been about volume, and for real estate businesses to thrive, they will have to engage as man customers as possible.
This is not surprising. According to AdWeek.com, at least 69 percent of real estate agents use Facebook while 52 percent of marketers use YouTube as a means to engage their audiences. Then again, success is not determined by the mere fact you have adopted social media in your marketing strategy. What matters is how you use these platforms.
Are you using these platforms merely to promote listings, or are you focused more on building valuable relationships with your audience? You will have to carefully choose your goals and make sure that you end up with a solid foundation for your real estate business.
How to overcome disruptions
Adapting to an evolving real estate landscape isn’t exactly the easiest thing in the world. But, again, it’s always best to keep moving around the barriers and never let go of the ball while it’s in our possession.
A Pivot and Adapt approach is what’s needed to win!