18 Days. That's how long on average homes are going from being listed on the market to being bought in Western Massachusetts. To put that figure in a clearer perspective, the Realtor Association of Pioneer Valley reported the median home price in the region was up 14% from $250,000 in 2020, and that a buyers market was still very much in effect.
With realtors having to contend with a perfect storm of issues ranging from climate change, political uncertainty, market volatility, rising mortgage rates, and changing technology to name a few, it's no wonder that many are feeling the pressure. Here are the five biggest challenges realtors face and what solutions can be done to fix them.
Low Inventory:
One of the biggest challenges facing realtors is the low inventory of homes for sale. This has been an ongoing issue for several years now and doesn't appear to be letting up anytime soon. The combination of more buyers than there are homes available is resulting in bidding wars and oftentimes, homes selling for above the asking price.
The Solution:
The best way to overcome this challenge is to be creative in your marketing efforts. This could include anything from social media campaigns to open houses to targeted mailers. It's also important to have a good understanding of the market you're operating in and to be able to anticipate change. You can also look at expanding your circle of influence by diving deeper into your local neighborhood for referrals.
One of the best ways to increase your referral network is by becoming an active member of your local and business community. There are many ways to get involved, but some of the most effective include attending community events, joining local clubs & organizations, volunteering for local causes, and building a personal rapport with local business owners. By getting to know the people and business owners in your community, you'll not only make valuable connections, but you'll also be more likely to be top-of-mind when someone needs referrals.
Growing Competition from Listing Portals
For years, realtors have relied on listing portals like MLS to market properties and reach potential buyers. But with the rise of online real estate listing portals, that landscape is changing. Today's homebuyers are increasingly turning to the internet to search for properties, and listing portals like Zillow, Trulia, Homesnap, and Zoocasa have become major players in the industry. While traditional realtors may be concerned about the impact of these changes, there are several reasons why online listing portals can be beneficial. First, they provide a wider audience for listings, reaching buyers who might not otherwise see the property. Secondly, online listing portals often offer more detailed information about properties than MLS, making it easier for buyers to make informed decisions. Third, online listing portals typically charge lower fees than traditional real estate companies, which can save sellers money. And lastly, the entire user-centric experience these portals provide is very hands-off and is the approach followed by most modern eCommerce companies today. What this means is that agents and realtors are usually sought much later in the buying process and the home buyer is armed with a considerable amount of information already that is not influenced by ads or other forms of digital advertising.
The Solution:
The best way to overcome this challenge is twofold:
(1) Make sure your listings are syndicated to all the major online real estate listing portals. This will ensure that your properties are seen by the widest possible audience and that potential buyers have all the information they need to make an informed decision. You can also use these portals to your advantage by optimizing your listings with key keywords and phrases that will attract buyers who are actively searching for properties. Lastly, make sure to keep your fees competitive so that you can attract more sellers.
(2) In today's competitive real estate market, it's not enough to simply be a local expert - you need to position yourself as one. One way to do this is to create a neighborhood blog and website. By regularly posting informative articles about your local area, you'll quickly establish yourself as a knowledgeable source of information. This, in turn, will make potential clients more likely to seek you out when they're ready to buy or sell a property. In addition, a neighborhood blog and website can help you to build relationships with other local businesses. By featuring their products and services on your site, you'll create a network of allies that can help to promote your business. So if you're looking for a way to stand out from the crowd, consider creating a neighborhood blog and website. It just might be the key to success in today's real estate market.
Adoption of New Technology Trends
From Search Engine Optimization and other digital marketing tactics to website development, SMART home technology, drone photography for real estate, and more, in today's competitive real estate market, technology is playing an increasingly important role. Realtors who can effectively harness the power of technology are better able to compete and craft a more compelling narrative to turn leads into buyers. For example, using drones to capture stunning videos and images that can transform an ordinary listing into one that immediately catches a buyer's attention. The trouble is, most realtors aren't experts in tech which means managing all the new technology available for the real estate market is a real challenge.
The Solution:
One solution is to partner with a digital agency that specializes in technology for the real estate market so that you can focus on what you do best - selling homes - while leaving the tech to the experts. From online listings to virtual tours, and drone videos for real estate there are a variety of tools & options for realtors to use to reach potential buyers. Additionally, social media platforms like Facebook and Instagram provide valuable opportunities to connect with potential clients. Realtors who can utilize these platforms effectively can gain a significant advantage over their competitors.
Growth of Lead Generation Expense
The real estate market is one of the most competitive industries in the world. To generate leads, real estate agents must be able to reach a large number of potential customers, while competing against all the other realtors and brokerage houses doing the same thing. This can be expensive, as it requires using various marketing channels such as online advertising, print advertising, and direct mail. Additionally, real estate agents must be able to follow up with potential customers promptly, which can also be costly, given the investment needed a dependable CRM system. Taking all of the factors above into account, it's not surprising that lead generation has become of the main issues facing realtors today.
The Solution:
One solution to this challenge is to focus on generating quality leads, rather than simply trying to generate as many leads as possible. This can be done by working with a trusted real estate marketing firm and ensuring that your marketing efforts are targeted toward your ideal customer and that your message is clear and concise. By taking a quality over quantity approach to lead generation, you can save money while still generating the leads you need to grow your business.
Another solution is to focus on building and growing organic traffic to your various online resources like websites and landing pages. This can be done by creating compelling content that speaks to your ideal customer and utilizing search engine optimization techniques to ensure that your content is easily found by those who are searching for it online. While this approach takes more time than simply buying leads, it can save you money in the long run and help you to build a more sustainable business.
Conclusion
The real estate market is constantly changing, which can present challenges for even the most experienced realtors. However, by staying up-to-date on industry trends and utilizing the latest technology, realtors can overcome these challenges and succeed in today's competitive market.