Second only to agriculture in terms of employment generation, real estate contributes as much as 8% to the nation’s GDP. By 2025, the real estate sector is anticipated to account for as much as 13% of the country’s GDP — powered in large part by office spaces (27% growth, year on year), followed by retail and warehousing.
Today, the real estate sector is picking up, unlike last year, with home buyers willing to make the move. With most workers displaced during the lockdown are now back, construction activity has resumed and work is moving at a faster pace to fulfil commitments.
Fact of the matter is, the real estate sector is here to stay, and its future holds some promise with numerous reforms and initiatives such as the Real Estate Investment Trust (REIT) by Securities and Exchange Board of India (SEBI) and due to the Budget’s assistance for the industry.
However, there are 5 major challenges the sector’s agents called real estate agents face, which are outlined below by real estate strategist and investment adviser, Hirav Shah.
Hirav Shah also pens down the solutions to these problems.
Real Estate Problems
In this day and age, being a real estate agent is really difficult. There are just so many things affecting the sector. This includes everything from environmental changes to advancements in technology. Therefore, there’s a number of challenges(mentioned below) real estate agents face and knowing how to overcome the current issues in real estate is the key.
With the way things are at the moment, finding sellers can be tough. This is especially the case for inexperienced real estate agents. They’re less attractive to homeowners who want to make as much profit as possible from selling their home which is why they prefer working with agents who’ve been operating for years. The problem is, you can’t gain experience if no one listens with you! Which is why you have to shift your focus. This is one of the biggest real estate issues.
a. Solution: Expanding your sphere of influence.
If this is the reason why your career has been stuck, trying to expand your sphere is a great idea. You want to label yourself as the neighborhood expert and the best way to do it is to connect with local businesses and have them recommend you to their customers and clients. In exchange, you can include them in your blog posts or give them shoutouts on social media. Once you land your first few clients, you’ll attract new ones much more easily.
2) Growing Online Competition
Actually, some technological advancements also have a negative impact on some aspects of our lives. For real estate agents, apps that allow you to list property have limited their role. The good news is, these apps haven’t eliminated the agent’s role and you can still succeed as a real estate agent. In fact, you can embrace technology and use it to your advantage.
b. Solution: Launching A Website Of Your Own Or An App.
This means you should design a website of your own or even build an app you’ll use to attract clients. A comprehensive website for your community or geographic farm is a great way to compete with the larger brands and more seasoned agents in your farm.
Of course, using social media is a must, as platforms like Facebook and Twitter allow you to share news about the industry. The more you do it, the better your online presence will be, which can lead to some valuable sales and give your career a real push.
3) Adapting To Tech Trends
Today’s agent has to be as savvy at using technology as they do at prospecting.
Algorithm updates, data security, privacy policies, marketing automation, SEO best practices, SMART home technology etc…
Brokerages and teams, in particular, must be updated with new tech trends. Buying the wrong CRM, errors with a transactional app or transferring domains to a new server can quickly spiral into costly issues that can set you back for months.
c.Solution: Working With A Tech Expert
Whether it’s setting up an email account, choosing a domain name, or deciding on a web-based CMS, tech decisions can’t be taken lightly. If you don’t consider yourself an IT expert, seek out someone you can rely on for tech advice, who can advise you on cost-effective alternatives and even trouble-shoot for you when you get stuck into problems.
4. Building a Database
Real estate is one of those fields where having a database for leads and referrals plays a huge role in how well you’re going to do. However, most agents overlook this and only focus on immediate sales. They fail to follow up with their clients after a sale has been made and rarely get back in touch with their clients. In fact, studies have shown that only 25 percent of agents manage to get referrals from their past clients. Certainly this is one of the very common, commercial real estate problems.To make things worse, studies show that this can make them lose almost about 50 percent of their annual revenue.
d.Solution: Implementing Marketing Automation
So, Staying in touch with numerous contacts is time-consuming! We all know.
But there is good news here. Automating your email delivery will save you valuable hours each week. Used correctly, marketing automation can also help you target your messages more effectively to the right market segments.
One of the very common problems with real estate agents is the financial status.
If you’re a real estate agent, your financial situation heavily depends on the property market. We’ve all seen what an economic crisis can do to the world of real estate and it’s always a good idea to put your money into something else as well. Find something else to invest in and you’ll depend less on the government and the real estate industry.
e. Solution: Diversification
After all, there’s a reason why investors prefer to diversify their portfolios as much as possible. Most real estate agents don’t know how to do this which is why they end up buying properties and expecting it to help their financial situation. However, diversifying and investing in gold, for example, is a good idea. Precious metals such as gold have a history of maintaining their value and you’ll never have to worry about losing your money. In fact, you’ll be making a significant profit while also making money through your commissions.
Agents should rely on the above mentioned real estate strategies for nurturing contacts through the earliest stages of the buying cycle. By consistently nurturing contacts,they remain top-of-mind with prospects long before their need arises –
Concludes Hirav Shah, Real Estate Investment Adviser, Strategist and Real Estate Business Astrologer™.