Real Estate Advisory Role for Next Generation Agents
The travel industry ceased to exist when the internet became popular. Most experts believe the reason for this demise was due to the fact that information available exclusively through travel agents became readily available to everyone with websites like Expedia and Travelocity that catered to the travelers needs 24/7.
Conversely, the financial investment industry has boomed despite the fact that the internet made financial reviews and information instantly available to investors. Why have advisors at Merrill Lynch, UBS and other firms enjoyed record success, while the travel industry tanked?
The answer has to do with several major differences:
- Sound investment advice is a far more critical issue than travel plans because life savings can be at risk.
- Successful wealth management advisors spend much of the day analyzing and interpreting massive amounts of data then apply the results to the individual needs of their clients to inform and educate
- Most investors don’t have the ability to spend most of their time tracking investment data. Even if they could, they recognize that an outside perspective from someone that knows their situation and their appetite for risk is invaluable.
So, will the real estate services industry go the way of the travel industry? Or, will it enjoy great success despite technological advancements like Google Earth, Zillow and Realtor.com?
The answer depends on how real estate agents respond to the rapid changes in the industry. Next generation realtors should enjoy great success in the future because of the following:
- Homeowners, like investors, have a significant amount of their net worth in their real estate holdings.
- Like investors, most homeowners don’t have the time or energy or expertise to interpret massive amounts of internet data to determine what works best for them.
- In asset management (and real estate is an asset), an outside perspective from an expert can help a buyer or seller avoid making a big mistake.
The key to success for next generation agents in the future will be their ability to:
- Analyze and interpret the massive amount of data available.
- Inform and educate their buyers and sellers.
A good script for agents to use in reinforcing their role as an advisor to their clients is as follows:
“My role as your advisor is to help you make the best possible decision by helping you manage your risk. If I don’t ask the “What if” and “Is it possible” questions, and they happen, I’ve done you a disservice to you because you can’t make an informed decision”