As the old saying goes, the only thing that stays the same is that everything changes. The tactics that worked just last year may already be obsolete. It seems there are always new stats realtors need to know. And with new technology, social media trends, and ever-evolving client needs popping up seemingly every day, it can be tough for realtors to keep up.
Ultimately innovation is the key to success in any business. In this article, we’ll take a look at some brand new stats realtors need to know going into 2021. We will also explore the effects these stats could have on the future of your business.
Let’s jump right in!
Embrace New Technology & Change
In any industry, innovation is the key to success. This is why you should never be afraid to explore new methods and new technology in your real estate business. Realtors who’ve been in the game for a long time might be inclined to stick to their tried and true methods. And we get it. After all, The Close shows that 45% of brokers report that “keeping up with technology changes” is the biggest challenge their agents face.
But the truth is, successful realtors embrace technology. For example, did you know that agents who earn $100,000 in gross commission are twice as likely to be using more advanced technology, than those who earn less? Still using a little black book to write your contacts in? Time to upgrade to a modern CRM.
Newer apps like Clubhouse and TikTok have seen huge user growth this year. Yet, despite that, only 2% of agents are using TikTok for professional use. Will these platforms become industry norms like Facebook and Instagram? Time will tell.
What we do know is that millennials continue to make up the largest share of homebuyers at 38%. With this generation’s aptitude for new technology, new apps and online services will continue to be a huge aspect of the real estate industry.
Being trustworthy and honest ranks highest among the most important factors when choosing an agent according to the National Association of Realtors. Your social media platforms will be a huge driver in establishing this.
Remember, change is inevitable. Embrace it.
What types of new technology should I look out for
When it comes to home buyers and sellers, embracing new technology has become essential. And the COVID-19 pandemic has only reinforced technology’s place in renting, buying, or selling a home.
A report from the National Association of Realtors found that sellers who sold after March 2020 were far more likely to use technology as a marketing tool. The biggest tool utilized was virtual home tours. The report found that 27% used virtual tours after March compared to 16% of those pre-April. While you may be more familiar with in-person tours, don’t let it become a limitation in the eyes of a homeowner.
One newer tool that’s taking the real estate industry by storm is drone videography. And to put it bluntly, you’d be a fool not to use drones in your marketing efforts! According to MLS statistics, homes that utilize drone photography in the marketing plan sell, on average, 68% faster than those that don’t.
Despite that, only 33% of agents reported working with drones in the 2020 NAR member profile. While 13% say they plan to work with drones in the future. It’s worth asking yourself: with 46% of agents using, or planning to use this technology – should you be too?
In real estate, first impressions are everything. According to a NAR report, 77% of all home sellers will contact only one agent before making a decision on who to work with. The ratio is the same for home buyers, with 77% only interviewing one agent during their home search. Of those buyers who worked with an agent, 91% said they would use the same agent again, or recommend that agent to a friend.
These numbers are massively important. They paint a very simple picture. You need to be visible to buyers and sellers in your market. Whether that is via social media, online advertising, or through building a large network, you must get in front of the people in your community. The numbers show that if you’re first at bat, you’re likely to hit a home run.
The NAR 2020 Member Profile also shows us that the average real estate professional has at least nine years of experience. While the number of professionals with less than one year of experience is down to 17% from 22% in 2018. This suggests that people are committing to long-term careers in real estate. And the pool of experienced agents is growing, making it even more important to set yourself apart from the competition. Having years of experience isn’t always enough these days.
How COVID affected the real estate market
Naturally, the ongoing pandemic has brought some changes to the real estate market. The types of homes people want to buy and their reasons for selling have all shifted.
Prior to March, wanting to be closer to friends and family was cited as the top reason for selling a home according to a NAR report. After March, however, sellers were more likely to report lack of space as their number one reason to sell.
Before the pandemic, the average household income of homebuyers was $94,400. After covid, the average income rose to $110,800.
A NAR report also found that homebuyers who purchased after March were more likely to buy a multi-generational home at 15%, compared to only 11% for those who purchased before April.
The main reason for wanting a multi generational home was caretaking for older relatives. Following that, 19% of people purchased a multi generational home due to an increase of children or relatives over 18 years old moving back in.
With living dynamics changing for homebuyers, the types of homes they need are changing too. Agents should be taking this into consideration for their 2021 marketing throughout Quarters 2, 3 and 4 to ensure that they’re adjusting to market behavior.
Build More Relationships
Going into 2021, NAR found that referrals continue to be the primary method most homebuyers use to find an agent. In the 2020 NAR Profile of Home Buyers And Sellers report, we see that 40% of all buyers found an agent through a referral from a friend, neighbor, or relative.
This data shows us that in real estate, relationships are everything. When you build relationships with people in your community, they are more likely to refer you when someone they know is looking for a house. Building relationships shows you’re in it for the long game and not just a quick sale.
Following referrals, working with an agent they’ve worked with in the past is the most common way buyers found an agent in 2020. 91% of all buyers say they would work with their agent again. However, only 13% of them actually do. So maintaining client relationships, even after a sale, is also an important strategy to consider. Remember to keep these clients in your database so that you can follow up with them. This will keep you front of mind when they’re ready to buy again. Even if you feel like you’re reaching out with no response, it doesn’t mean your efforts are unnoticed or unvalued.
Geographic farming is an effective way to dominate your area. But, to keep it short and sweet, mailers, flyers, and print ads are nearing obsolete status. After all, most of us toss these types of marketing straight in the trash without looking. In a NAR study, only 10% of all buyers and 9% of first-time buyers, specifically, report using print ads in their home search. If you’re doubling down on a resurgence of print marketing in 2021, you may want to consider other options considering so few home buyers rely on this.
The share of home buyers who used the internet to search for a home increased to an all-time high of 97% in 2020. Yet, online leads are becoming less and less reliable due to changes in privacy laws and consumer behaviour. One of the biggest challenges when using online leads to build your business, is the expectation of instant gratification. However, many consumers actually get turned off when you try to sell to them right away. In an industry where referrals lead to more sales, building relationships online is what you should be focusing on.
A terrific way to nurture your online relationships is to utilize an email newsletter. According to NAR, email newsletters are most valued by those aged 22-29 and 65-73. A newsletter allows you to continually provide items of value to potential clients. In 2021, it is a must-do marketing strategy, and a way that you can truly own your database.
New Stats Realtors Need To Know About Social Media Use
In the NAR Home Buyers and Sellers report, we see that having an agent be active on social media is most important to first time buyers. Yet 26% of realtors admit they don’t use any forms of social media for professional reasons.
And, despite the potential power social media can have, only 43% of all realtors link to social media on their website. This is a simple step to cohesive branding online. It might take an extra 5-10 minutes, but it’s well worth it.
Where many agents go wrong, is through not planning an effective content marketing strategy. 59% of realtors use social media daily but, only 32% use any type of social media management app. As a result, many agents will post sporadically (if at all). Utilizing scheduling apps can save you time in the long run. Block out 30-60 minutes a, one day a week, and schedule posts for the next 7 days using a tool like Hootsuite.com. Dedicating time in one block, will save you the back and forth of deciding on what to post on a given day. Trust us, we’ve been there.
Now, we get it. You want to post more, but you’re just not sure what to post, right? You need a content calendar. A content calendar will ensure that you are following a set plan for what you are posting online. To get you started, here is a done for you Instagram monthly calendar that will not only inspire, educate, and entertain your followers – but spark that in you too.
New Stats Realtors Need To Know About Videos on Social Media
In addition to the type of content you share, the medium in which you share it is equally important. Video is the king, especially as it relates to real estate.
73% of homeowners say they are more likely to work with an agent who uses video to sell their property. 73 Percent! On Instagram in particular, how-to videos and behind the scenes videos continue to be the most popular. Pro-tip: IGTV videos show up 4x larger on the Instagram explore page and as a result, these videos grab attention!
In terms of where their internet home searches take place, homebuyers say they conduct 50% of their online searches on a laptop and the other 50% on a mobile device.
Homebuyers who used a laptop or desktop in their home search were more likely, at 46%, to use online video sites. That number drops to 40% when the buyer is using a mobile device in their search.
This shows us the demand for video in real estate is there. The question is will you create it?