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For years, referrals have been the lifeblood of real estate agents. But in today’s digital age, where almost everything starts with a Google search, the way buyers connect with agents has undergone a significant transformation. According to the Zillow Consumer Housing Trends Report, released in October, a whopping 37% of buyers discovered their agent online, surpassing the 31% who found their agent through traditional referrals. This shift is reshaping the landscape for real estate professionals.
This shift is not just about convenience; it’s also about trust and transparency. For agents, it presents both challenges and opportunities. How can you stand out in a crowded digital arena while leveraging technology to attract and serve clients more effectively? This article will delve into the reasons why referrals are losing ground, what modern clients expect, and the steps you can take to stay ahead in an industry that is increasingly digital-first.
Why referrals are losing ground to online searches
Digital tools empower consumers to take more control over their decisions. Buyers are now conducting their own online research on potential agents before making a choice. According to Zillow, 23% of buyers found their agent through a website or app, 7% through a social network, and 7% through search engines like Google. They are turning to online resources such as Zillow or Realtor.com and social media platforms to find an agent who best meets their needs.
These online connections have surpassed traditional referrals from friends, family (22%), other agents (5%), or home builders (4%). In addition to finding agents online, Zillow’s report indicates that 65% of pre-approved buyers used real estate websites or apps to explore financing options. So, what is driving this shift?
- Convenience: Searching online provides easy access to information about an agent. In just minutes, buyers can view your past sales data, read client reviews, and get a sense of your personality.
- Transparency & Trust: Online ratings and reviews allow clients to get to know an agent before meeting them. This helps build trust before the formal relationship begins.
- Efficiency: Clients can compare multiple agents simultaneously, making the process quicker and more efficient.
What this means for agents
- Prioritize your online presence: Keep your profiles updated on real estate platforms and social media.
- Encourage past clients to leave online reviews: Let satisfied clients be your advocates in today’s version of word-of-mouth referrals.
- Ensure potential clients can easily contact you: Your contact information and credentials should be readily available on all social media platforms and real estate websites.
As this new reality takes shape and more buyers and sellers transition to digital platforms to find their next agent, it is crucial to have a polished online presence. Relying solely on referrals to sustain your business is a thing of the past. Agents must embrace this change to position themselves ahead of the curve.
4 ways to meet the needs of today’s buyers & sellers
In today’s market, buyers and sellers expect more from their agents. They seek an expert who understands their unique requirements, offers sound advice, and simplifies the complex home buying or selling process. It is about establishing trust and demonstrating to your clients that you are the trusted advisor who can guide them through the process successfully.
1. Showcase your expertise on social media
In the current real estate landscape, clients prefer to work with agents knowledgeable about the local market and their needs. You must demonstrate that you possess the capabilities to meet their specific requirements. This is where the power of social media comes into play. It serves as a tool to showcase your expertise and engage with potential clients effectively.
Whether you are discussing market trends on Instagram or providing home staging tips on TikTok, leveraging platforms like Coffee & Contracts can help you maintain a professional and engaging online presence effortlessly.
Steps to stand out: What sets your online presence apart?
Building an online presence is not just about getting noticed; it is about creating a platform that attracts clients and retains their interest.
Embracing tech to thrive in a digital-first future
Technology has revolutionized the real estate industry. To thrive in today’s digital-first environment, it is essential to adapt and leverage the right tools. Technology can streamline your operations, impress your clients, and enable you to work smarter, not harder.
The full picture
The evolving dynamics of how buyers and sellers engage with agents necessitate adapting to their changing habits and preferences. A robust online presence, strategic use of technology, and personalized communication are now indispensable for success in the real estate industry.
By embracing these changes, you can build trust, deliver value, and resonate with today’s clients effectively. Your online presence serves as the initial point of contact with clients, so it must be as compelling as you are. With the right tools and strategies, you can position yourself as the go-to agent for clients in today’s digital world.