Technology might be offering a host of potential for the real estate industry, but a new report has found the key to using it successfully is striking the right balance between personalisation and automation.
US-based online real estate service Move Inc and their subsidiary software arm Realsuite recently released their report “Shift Happens: How to capture, communicate and close in today’s ‘on demand’ world”.
The white paper draws on two research initiatives in the US, putting today’s best practices under the microscope and examining buyer and seller expectations at each stage of the selling journey.
Their findings indicate that not only are consumers expecting the personal touch, but they are hoping technology will improve the experience.
The report found:
- Just 14 per cent of consumers are likely to respond to a communication they perceive to be an automated reply
- Three of the top five qualifiers consumers use when selecting an agent cannot be replaced by technology
- Consumers want more transparency every step of the way, and three out of four buyers want an online system to track the offer-to-close process
- Agents’ insider knowledge such as upcoming assessments and neighbourhood detail is just as critical to buyers as pricing trends, recent sales and days on market
Move Inc’s Executive Vice President Luke Glass noted the current environment presented a critical time for real estate professionals.
“The emergence of technology and automation onto the scene has greatly improved the real estate process in some ways, yet these findings reveal that many agents are failing to leverage technology or to use it properly at key points along the journey, to the detriment of the agent-client relationship.”
As an example, the report found half of buyers making an inquiry do not receive a response from an agent, and when they do it can feel too impersonal. Meanwhile, in a fast-paced world buyers expect almost instant replies.
“Best practices suggest responding to leads within five minutes to improve contact reach; however, leading agents typically respond in under two minutes to improve their chances.”
That open, swift and clear communication also needs to continue throughout the buying or selling process, with the report noting:
“On average it takes 52 touch points to move a home buyer from first inquiry to close. With various channels to communicate (phone, email, text, etc.) it is critical to have systems in place to track conversations with detailed notes, so each time contact is made it is tailored to the client or lead.
“Beyond tracking, an intuitive system can help by prompting appropriate touch points to follow up with and nurture leads over time. During this nurturing period local market reports and personalised follow-up is necessary to stay top of mind until your lead is transaction-ready.”
At the same time, the research also underscored that “an agent’s personal knowledge and touch remains a vital and irreplaceable part of the process”.
The top characteristics that people look for when selecting an agent are: honesty, local market expertise, a likeable personality, a personal connection, and client recommendation. And agents can employ technology to assist in presenting these attributes.
The findings indicate 85 per cent of clients trust online reviews, while industry insight can be shared via blogging, newsletters and insights.
When it comes to closing, the report further stated the final stage of selling or buying “presented one of the most challenging periods” for agents and clients, but technology could improve the process.
“Some of the biggest challenges that consumers said they experienced with the closing process included waiting, paperwork, communication, transparency and feeling prepared.” The result was that nearly one-third were left dissatisfied or feeling neutral.
The white paper found:
- 73 per cent of recent home buyers would have liked an online system to track the offer-to-close process, including activity, tasks, and documents.
- 75 per cent would like to receive an email summary of recent transaction activities
- 85 per cent would like to receive email updates when tasks are completed
- 81 per cent would like to receive notifications of current or upcoming tasks
- 75 per cent would like to be able to upload/share/sign documents online
- 74 per cent would like the ability for all transaction members (you, your agent, mortgage broker, selling agent, lawyer, etc) to collaborate and communicate online
- 73 per cent would like to use an online system to create and monitor all transaction details, such as activities, tasks, signatures, documents, etc.
“Together, the insights present the case for incorporating technology with personalised service, in order to meet the bar of consumer expectation and deliver optimal value,” Mr Glass said.
“Finding the right balance between automation and personalisation is critical to an agent’s ability to deliver an exceptional experience, yield more closed business and bring more repeat and referral business into the pipeline.”
