The Plan To Save Real Estate starts with understanding Zillow and how it is affecting the buying and selling transaction. The way it works is similar to how Homegain and HouseValues.com used to. The basis is ‘what’s a home worth?’ These types of websites and forums have been on the internet since real estate took on the web. Take a look at any real estate article on www.telegraph.co.uk; most of them would have stats from a Zillow real estate report. What does that mean? It means that real estate needs saving.
So, how does the web forum actually work? Let’s say a homeowner surfs the net and then decides to fill out a form to sell the property. The form is then forwarded to institutional investors with deep pockets. The same form is sent to real estate agents. They are asked to give an estimation and valuation of the property; so that the homeowner has the incentive to list with the agent rather than selling it to an investor. At this juncture, the owner of the property has three choices:
• They can list with an agent.
• Use an agent’s help to sell to an investor.
• They can directly sell to an agent.
This is the foundation of the platform which is breaking the real estate. It generates leads for sellers. Instead of calling the realtor, the owner prefers to surf the web and fill out forms that give an instant offer. The transaction maybe speedy and seem more profitable, but in the long run, it is not so.
Now, that we are clear on the working of the process, let’s take a look at how do we go about saving real estate. A property owner who decides to use a realtor has multiple advantages. The foremost of which is ease. Selling a property requires work like staging, repairing, cleaning, landscaping, etc. When a person collaborates with a realtor, most of the work is handled by the agent. The agent prepares the house for the sale, taking away a headache from the owner. Using a web platform to sell a home does not offer this ease and comfort.
The second step to saving real estate is building relationships. Numbers clearly show that only 17% of buyers use the agent, to sell a property, who helped them buy a house. Why such low rate of conversion? The most obvious factor is the inability of agents to maintain a relationship with their clients. Agents, brokers and all other real estate employees need to work in building a rapport with clients. They have to make property owners think of agents as ‘my realtor’. When that connection is made, no man or woman would prefer a computer over an agent.
After the first transaction has been completed, be it buying a new home or selling an old house, stay in touch. Do an excellent job while buying or selling the owner’s property. When you take care of a client, they will not only come back to you but also refer you to other potential customers.