Is the “Traditional” Real Estate Agent Dying?
Jay Kinder of Kinder Reese Real Estate Partners & the National Association of Expert Advisors recently released a thought-provoking report titled, The Death of the “Traditional” Real Estate Agent. In Kinder’s report he explains why traditional agent strategies are not enough to survive in today’s real estate industry. The agents that get ahead in today’s market have a willingness to share ideas, become masters in other trades that help their business, and get to know their market area inside and out. Long gone are the days where agents can simply place a sign in a client’s yard, put an ad in the newspaper and take home a fat commission check.
Real estate has always attracted agents due to its low barrier to entry, ability to be your own boss, and high income potential. For many years agents were able to make money putting in a minimal amount of work. More recently though the average income for agents has fallen, and thus the real estate industry has seen an exodus of agents who found it hard to survive with the changing economy. This gave way for a new breed of agents, as Kinder calls them, the “expert advisor”.
Real estate is not the first industry to go through rapid changes and hardships. Kinder points to the travel industry, the local hardware store, and the local mom and pop coffee shops as examples of businesses that have not survived competitors' “better, stronger, more diverse offerings”. He later warns traditional agents that if they do not begin to change and become more agile, they will, too, be swallowed up by their competition. You might be saying to yourself “What does a traditional agent look like?” A traditional agent keeps all of their best secrets to themselves for fear of competition. They work in silos to keep everything away from the competition, instead of believing in sharing ideas to make the industry better.
In contrast to the traditional agent, the expert advisor believes in sharing to prosper and building long-term relationships. They are not only committed to their own success, but also the success of others around them. This doesn’t come easy though, as expert advisors need to understand a variety of things in addition to real estate, such as marketing, people, sales, etc. Kinder provides seven key hallmarks of an expert advisor:
1. Market Expert: Agents who arm themselves with every piece of information about your current real estate market.
2. Differentiator: Agents who understand the need to be different; and therefore seek information and feedback from a variety of sources.
3. Marketer: Agents who know how their clients search for homes and how to get their listings exposed through those mediums.
4. Relationship Manager: Agents open to fostering strong, long-term relationships with other agents in their area.
5. Optimizer: Agents who make sure leads are handled quickly and efficiently.
6. Negotiator: Agents who understand the art of negotiation.
7. Implementer: Agents not afraid to take action and implement an idea.
Our vision at BoomTown is to constantly innovate and share knowledge to drive the future of real estate technology. We understand real estate is an ever-changing industry and our clients not only learn from our coaching and training, but from each other. That’s why we are proud to provide a variety of ways for our clients to share and mastermind with each other. This is evident through our Facebook communities, our Smart-Drip Sharing Library, our client success managers, and mastermind events. In fact, Jay Kinder is an avid BoomTown user and business coach for many of our clients. We could not agree more with Kinder's hallmarks of an “expert advisor” and we aim to help drive the future of the real estate industry by promoting these hallmarks with our BoomTown family.