The New Reality for Real Estate Agents
August 2024 brought a major shift in the real state industry by changing how agents are compensated. Following a class-action settlement with the National Association of Realtors (NAR), real estate agents are now facing increased competition, potentially lower commissions and more pressure to acquire new leads. Although the challenges are great, this is also an opportunity for outstanding real estate agents to become even more successful. One key to success is partnering with a professional real estate agent answering service to handle inbound calls and route them according to the level of urgency and the nature of the call.
The Changing Landscape of Real Estate Compensation
Let’s review the changes that came into effect on August 17, 2024 for the real estate industry:
- Sellers can no longer automatically cover both their agent’s commission and the buyer’s agent’s commission.
- Offers of compensation cannot be communicated on Multiple Listing Services (MLS).
- Buyers may need to pay their own agents separately.
- Written agreements between buyers and their agents are required before touring homes.
- These agreements must disclose the specific amount or rate of compensation.
These changes are intended to increase transparency and promote consumer choice, but they also present significant challenges for real estate agents who are used to operating in a different environment.
Real estate agents are now facing:
- More competition: With commissions potentially dropping below 4% and possibly to 3%, agents will now need to compete eve more fiercely for clients.
- More complex negotiations: Agents will need to negotiate their compensation directly with clients. This is a new obstacle in growing your business and requires more trust from your clients.
- Different use of time: With potentially less earnings per each transaction, agents will need to handle more clients to keep or increase the income levels they are accustomed to. This means more hustling for new clients.
Many real estate agents were using answering services before. But given this new set of challenges, there are many reasons why an answering service is even more important than before for real estate agents:
- Never Miss a Lead: In this new reality and marketplace, every lead is a golden opportunity. With an answering service in your corner, you will never miss a call. You could be meeting with a client, showing a property, conducting an open house, or on vacation, but the answering service is available around the clock, every day of the year, including weekends and holidays. When you have to compete for leads, 24/7 availability could be key to winning over a client.
- First Impressions: With written agreements now required before home tours, the first phone call could be everything. If you miss the first call, your potential client will probably call the next agent on the list. What could be even worse is if you answer the call, but are distracted while in another meeting, driving to a showing, or in a noisy setting. This type of distracted conversation could signal a lack of professionalism. This is simply not something a real estate agent could afford in today’s world. A professional answering service helps create a first interaction with your business that is courteous and prompt: no background noise, no distractions.
- Call Screening and Lead Qualification: Every call is important, but not every lead is viable. As important as it is to make the best first impression, your time is also valuable. You don’t want to waste it on a caller that will never convert into a lead. You can train your answering service to screen callers based on a set of questions. Then, the virtual receptionist will know whether to take a message, transfer the call to you or one of your colleagues, or another person back at the office. You will only receive calls that have the potential to generate leads and grow your business. No more wasted time, talking to telemarketers or other types of solicitors – let the answering service filter those calls out.
- Cost Savings: Let’s address the big question: how much does an answering service cost? Can you afford to spend even more now, while you may be facing lower commission and income? The truth is, that an answering service is usually cheaper than hiring a full-time receptionist and more reliable than depending on voicemail. And, this investment will quickly pay for itself when you receive more qualified leads and stop wasting your time on answering non-business calls. It’s a no-brainer.
- Competitive Edge: Every real estate agent is rethinking their marketing strategy today. Everyone needs to work harder than ever to earn the trust of clients, whether on the seller or buyer side. So, how do you stand out as a trusted real estate agent? By signaling your commitment to outstanding service and being there for your clients 24/7, you’ll demonstrate that you stand apart from the competition. And this doesn’t mean you physically need to answer every call – a 24/7 answering service will do that for you, in a way that builds trust and your brand reputation.
- Future-Proofing Your Business: 2024 changes the real estate business forever. You will either need to adapt to this new way of marketing and conducting business, or you will see your business whither and fail. Real estate agents are resilient and resourceful. Now is the time to double down and create a reliable system to answer every phone call, not the time to sit back and watch your competitors win clients away from you.
Consider how an answering service could fit into your business strategy: you can use the service 24/7 or turn it on after hours only. You could have the answering service qualify leads for you, or simply take messages. You can even use a bilingual answering service to serve the Spanish-speaking community and extend your reach. If you already investing in marketing, make the marketing dollars work harder for you and generate a positive return on your investment when you hire an answering service to answer calls around the clock. You can use the time you save to knock on more doors, meet more potential clients, network with referral sources, or attend events to promote your business and/or learn additional skills. It’s time to work smarter, not harder. The choice is yours; the time is now.