A new study from the United States has revealed how more homebuyers are bypassing traditional real estate agents when buying and selling their homes.
Ongoing industry disruption has forced many real estate agents to focus more efforts on building strong customer relationships.
The study by JD Power, a leading global insights company, noted that digital disruption is proving both challenges and opportunities for what it called “traditional” supplies of real estate services.
The study, in its 11th year, also measured customer satisfaction with the largest real estate companies in the United States in three segments: first-time buyers; repeat buyers; and first-time sellers.
With at least one real estate agent experience/rating website promised to launch in Thailand before the end of 2018, reputations and service will be more important than ever for local real estate agents.
“Real estate firms are recognising that their value proposition has shifted from that of information broker to trusted advisor,” said Craig Martin, Senior Director of Financial Services at J.D. Power.
“As a result, we’re seeing increases in customer satisfaction in each of the segments of home buyers and sellers.
“The challenge for these companies is to consistently demonstrate and communicate the value to current and potential customers. Those who ensure trust and understanding are at the center of their client and customer strategies will truly differentiate from both traditional competition and those attempting to disrupt the industry.”
Here are some key findings of the study:
More experienced home buyers and sellers foregoing agents: A significant majority (88 percent) of American home buyers are beginning their search for a new home before selecting an agent.
A total of 19 percent of repeat buyers, 14 percent of repeat sellers, 13 percent of first-time buyers and 9 percent of first-time sellers did not use a real estate agent to buy/sell their home, a number that has grown steadily during the past two years.
The reputation of a real estate firm is the number one reason for selecting a company for both first-time sellers (44 percent) and first-time buyers (39 percent), outweighing personal recommendations and past experience with real estate agents/salespeople.
Nearly half (47 percent) of buyers and 55 percent of sellers indicated they were using social media to find real estate agents, with the majority saying they were “delighted” after doing so.