Over 6 million homes were sold in the United States in 2017, resulting in millions of profits for realtors each year. However, with over 2 million licensed realtors in the United States, realtor competition is quite intense.
Why is There an Increase in Realtor Competition?
Several factors contribute to the increase in realtor competition. The housing market continues to heat up and so has realtor competition alongside it. Many new professionals continue to enter the business as they see the potential for a high income earning career. There is low inventory in several markets across the United States making the potential for sales lower for many realtors. Lastly, technology continues to shift the way real estate is sold and increases the competition for selling homes.
Competition with Artificial Intelligence
Over the last few years, an increase in online real estate platforms has increased the competition realtors are facing. REX, Real Estate Exchange, a tech startup located out of Los Angeles, has rolled out an artificial intelligence program designed to sell homes at a fraction of the cost. Their technology uses an algorithm to target potential buyers in the area by scouring over one hundred data points and providing ads through social media to targeted buyers. The service only charges a 2% fee which is substantially lower than the typical realtor commission of 5-6%. Currently, REX only operates in certain geographical areas, but as they continue to expand they continue to threaten as greater competition.
Upnest is another example of the increase in competition for realtors online. This platform is a free service for homeowners to compare the rates and services of real estate agents in their area. Agents are competing against one another to win the business of sellers. Upnest is another place where agents have to stand out in a competitive market.
How to Stand Out Amongst Realtor Competition
How do you stand out in a market that is saturated with agents? There are several ways to ensure that your real estate business is set aside from the rest.
- Have a consistent web presence. According to the National Association of Realtors, 51% of people find the home they want to buy over the internet. Having a strong web presence is an integral part of generating and capturing new business. You should be on all the main listing pages like Zillow, have your own website and have a strong social media presence.
- Be a resource to clients. Immerse yourself in the local market and have a wealth of networking contacts that can assist clients with their various housing needs.
- Provide excellent service. Word of mouth referrals are worth more than any other type of advertising, and it costs much less. Leave your clients satisfied with your service and they’ll recommend you to their family and friends.
- Be the first to contact and follow up with prospective and current clients. An estimated 78% of buyers work with the first agent who contacts them. Call your online leads within 5 minutes to gain their business.
As any experienced realtor knows, a career in real estate is far from the misconception of an easy job. Successful realtors work more than 40 hours each week, during all hours and days. They are dedicated, hardworking and relentless at achieving success. These are the realtors who will stand out from the competition. However, they have a team of professionals that they work with to ensure this success. In a highly competitive market, it is possible to stand apart from the competition and increase your sales.