In todays technology driven environment where consumers make all the decisions using online resources and data, real estate agents need to adapt to changing client needs and expectations.
In todays world technology has enabled every consumer to the extent that no one even goes to eat out before doing online research about where they want to eat, how much they want to pay and what they want to eat, even before they step out of their apartment. Imagine if someone is willing to do this much pre analysis just to eat one meal, how much research they will do if they have to make a real estate investment given an average Indian makes 1-2 real estate transaction in their lifetime.
Even with advancement in technology, a local real estate agent is still making decisions based on intuition and very limited data of local neighborhood and this ultimately results into loss of customers business. A survey conducted among real estate agents in Navi Mumbai revealed that the average conversion rate per month is around 2%, that is for every 100 customers who inquires about a property, only 2 end up making a positive rent or buy decision. Another study conducted among consumers who want to either buy or rent a residential or commercial property showed that most of them feel that most of the local real estate agents are not able to cater to their needs/requirements and instead force feed them the properties they have; this ultimately results into customer churn. Further the survey results showed that consumers will prefer an agent who can acts as an advisor and would use technology and data to guide them through the process instead of old fashioned intuition based decision making process. For example, say customer A is looking for a residential property as an investment and customer B who is married with one kid is looking for a residential property to raise his family; both want to buy a residential property but their requirements will be very different from each other. Customer A might like a property next to a train station or college or shopping complex because of high rental income and future growth, on the other hand customer B might like a property next to a school and garden and in a safe neighborhood with less crime rate. A successful agent should be equipped with all these data points on their smartphone or laptops in order to help consumers make smart decisions and close the deal faster.
With entrance of big players such as CBRE, JLL in Indian market who use technology and data to guide their clients, local real estate agents are struggling to keep their client base.Read more