Three Ways Real Estate Careers Are Changing
If you’re interested in pursuing a career in real estate, there are many incredible opportunities for you. Although people who have been on this career path will tell you that it has changed a great deal over the last few decades, there is still plenty of room for career growth and success.
The real estate business is affected by numerous factors outside the control of the people who engage in it. It can experience ups and downs that are affected by interest rates, economic factors like unemployment rates and inflation, and even technological developments. Consequently, to succeed in this market, you need to keep up on how the real estate world is constantly changing, and provide your clients with excellent service as the environment evolves. Here are some of the most significant changes that are affecting how the real estate business is operating today.
1. Online House Shopping Is Growing in Popularity
Online house shopping has become the primary method that buyers use to scout houses that they are interested in. Up until a few years ago, however, most buyers still made it a point to see a house in person before making an offer. But today, online house-hunting is now replacing in-person viewing in a lot of cases.
Real estate agents have found themselves serving a new market that has emerged just in the last two or three years. The COVID-19 pandemic spurred a lot of interstate relocations, not just in response to the different regulations imposed by different states, but by the advent of mass telecommuting. Workers are less tied to a geographic work location, which means that many new buyers do not need to find a new job before relocating: they can live anywhere they want and keep the same job. This new freedom has made people more willing to move to a favorite location or to be a little more adventurous and willing to take a risk in pulling up stakes.
This means that real estate agents are being hired remotely, and they have to adapt their websites and online outreach to address nationwide markets. With more buyers willing to purchase a house sight unseen and also willing to rely on their real estate agents’ judgment and perception, agents who are leaning into this new dynamic with more proactive assistance for out-of-area buyers have found a niche calling in the real estate market. And, with internet-based banking, communication, and document signing, real estate deals can be completed in an entirely virtual world.
2. In-Person Open Houses Aren’t the Standard Anymore
Holding open houses for newly listed properties have traditionally been an important part of an agent’s career. This meant working with the homeowners to be “gone” on a weekend day (if they still live in the home), setting up the house for showing, putting out signs, spending the day showing the house to prospective buyers (or casual shoppers), collecting information, and handing out business cards. Often, real estate agents would have to give up several weekend days every month to do this chore. But things have changed.
While open houses are not entirely extinct, they are less popular. Even for people who are shopping locally, few people prefer to drive around to open houses much anymore; it is too time-consuming. As a result, realtors are now having to ramp up their online listing capabilities, providing 3D virtual tours of homes, drone footage of the exterior of the house and surrounding neighborhoods, more photos, and more overall information about their listings.
Even people who are not comfortable with an entirely virtual home-buying experience will spend a good chunk of the up-front time and effort online, and save the actual house tours until the end of the process.
3. Changes in the Economy
Housing inventories in every market are always ebbing and flowing. Under the law of supply and demand, when there are more buyers than houses on the market, prices escalate. Right now, there are housing shortages in almost every market; however, it is not necessarily making prices escalate the way sellers want. This is because there are countervailing economic factors that are dampening the market.
The pandemic lockdowns had serious effects on the economy in terms of employment and business viability. Many people experienced radical changes to their financial situations. These events also impacted the construction industry and developers. When you add these factors to the increased levels of interstate migration, higher interest rates for mortgage loans, inflation, and recession, you end up with a real estate market that is not following a normal pattern. As a result, real estate agents are looking at a lot of housing metrics that are a bit unfamiliar.
This unusual market presents tremendous challenges for real estate agents when it comes to helping their clients. Although supply is still low, many buyers are being more cautious about pulling the trigger on making an offer. Real estate agents have to work a bit harder to help their clients navigate their way into finding and purchasing a home that they want but that fits into their budget. They also need to work harder to help sellers market their homes, and moderate their clients’ expectations in this changing environment.
Careers in real estate are changing, but you can count on one thing: Prime Real Estate Group’s commitment to helping our clients find their ideal homes. If you’re ready to sell your home or are looking for your dream home and need an agent who can help you navigate the changing world of real estate, we can help. Contact us today at Prime Real Estate Group to browse our listings and connect with one of our agents.