3 Tips to Put Real Estate Tech Into Buyers’ Hands

Real estate agents used to hold all the keys in the buying process. Just a few decades ago, buyers had to rely on newspaper ads and friends as their initial research sources, and if they wanted “insider” knowledge on market activity, neighborhoods, etc., an agent was their only option.

Today, technology has shifted the landscape. Now, buyers have options to be well-informed long before they ever come to an agent. This sets the stage for a stronger connection between buyer and agent from the first point of contact.

Instead of coming to an agent with a blank slate to fill, people can now simply consult the phones in their pockets to find information on the real estate market in preparation for the later buying stages. The National Association of Realtors found that 87% of buyers worked with an agent to find a home in 2018, but the typical buyer began his or her property search on a mobile device.

Most consumers don’t know how to interpret the more complex points and trends commonly found in real estate. This is where agents come in: Informed buyers trust agents to interpret the complicated data they surface on their own. That doesn’t mean buyers are satisfied with limited access, though. Recently, my company, Sotheby’s International Realty, partnered with Forrester Consulting to examine the ways in which technology has impacted agents and consumers alike.

We found that consumers are more empowered than ever.

The New Normal

Technology tools that used to be cutting-edge are now just the price of entry to today’s consumer market, yet many agents still fail to pay the toll. Case in point: 58% of buyers we surveyed would have liked a 3D tour of a home, but only 29% said they were offered such tools. Prospects also expressed high levels of interest in virtual and augmented reality technology, but again, few had access.

Today’s real estate shoppers are discerning. They either grew up with technology or have lived around it long enough to expect smarter tech. They prefer to partner with agents who have invested time in being up-to-date: 74% of consumers in our study agreed that tech-savviness of real estate agents is important.

To sell successfully in 2019 and beyond, real estate agents cannot keep technology for themselves. Instead, agents must deliver technology into the hands of buyers and sellers and help them use it to its full potential.

But what does “technology” really mean? In the real estate industry, it can refer to a wide spectrum of tools and capabilities. AR tours are technology — but so are back-end tools that help agents process data and personalize prospect communications.

Real estate agents already understand the importance of tech in their line of work. Our study with Forrester Consulting found that 83% of surveyed agents agree that technology helps them work better and would like access to even better tools. Consumers and agents alike want better tech, and if agents want to keep pace with the market, they need to fulfill that request for both parties.

How Real Estate Agents Can Empower Buyers With Tech

Real estate agents must figure out how to bring their clients closer to their services using innovative tech. They must also arm their teams with the tech they need to do their jobs effectively. The following three steps can help agents put meaningful technology in the hands of the right people:

1. Understand the goal. Every real estate agent has different KPIs. Obviously, selling properties is the top priority, but agents also seek to expand their brands, create high-quality content, and improve relationships with their partners.

Don’t let the pressures of market trends distract from your primary audience: the consumer. Tie back every proposed technological investment to the value added to the consumer journey. Consider what you promise your clients — whether that’s a luxury experience or insider knowledge — and think about the kinds of technologies that would augment those specific journeys.

For instance, our study found that 84% of consumers have used real estate apps over the last 12 months. Agents looking to capture consumer attention — and meet a demonstrated client interest — would be smart to investigate whether the specific apps that they’re utilizing are being readily adopted by their clients.

2. Follow the journey of the users. Technology does not exist for its own sake; it serves to extend the brand experience. Rather than limit technological investments to the agent side, keep the end user experience in mind. If the tool isn’t intuitively useful to the target audience, buyers won’t use it.

We discovered that 67% of surveyed buyers said that using technology makes them feel more secure about their purchases. People want tools that simplify the buying process, but if the agents behind the tools don’t consider the user experience, those buyers will become easy targets for competitors with more practical offerings.

3. Keep up with trends to stay relevant. The only consistent thing about technology is how quickly it evolves. Look at tools from other industries and consider ways to leverage similar tools in real estate. Industry best practices are a great foundation, but innovative agents understand that following the crowd is the quickest path to irrelevance.

Think about ideas that work in other industries and how they might apply to the purchase process. Prioritize the tools that consumers are adopting early. Whether or not you enjoy social media, it’s important to note that we discovered that 48% of users between the ages of 18 and 39 follow real estate social media feeds, as compared to 21% of consumers over the age of 40.

If you’re aiming at the emerging affluent demographic, an engaging social media presence can serve you well. Let real behaviors, not idealized ones, dictate which innovations to pursue.

The top agents of the future know that putting technology in the hands of their clients will empower them to become more informed, which will increase the connection between buyer and agent.