In a 30-year cycle, there are ups and downs in the economy. Whenever an industry’s return on investments is more than 10%, 15%, 20%, or anything above the normal average, it attracts investors. In the same way, when a company makes too much cash, they become a buyout target. These successful companies start to attract the technology geeks. They become a target for automation.
Today, I spent time researching market data for the upcoming UCF Real Estate Conference. A strange thing hit me, most of the sources I found were from people who don’t sell real estate. The articles were from tech companies trying to convince buyers and sellers to bypass the agent to enter their data (Homes for sale, homes they want to buy) and allow their computer to make a match.
Then I heard something funny from one of my real estate advisors. He said, “A client asked me if his Zillow Zestimate was correct?”
He continued the story by asking the customer, “Has Zillow been inside your home? I guess Zillow hasn’t seen your new kitchen or have they?”
The client laughed, my real estate advisor made his point.
Can real estate and tech companies work together?
When the market is up, we always see Silicon Valley techies jump into real estate trying to push the agent right out of the equation. Remember when everyone thought internet doctors would change medicine. Guess what? They didn’t.
Real estate will always be a localized business.
In the past couple of years, I’ve counted over 14 companies in the business of having real estate change hands through algorithms. The human factor is out of the transaction. These tech companies are great at marketing the idea that real estate agents are too busy to sell a home. Websites like Realty Trac, Ten-X, Zillow, and more do a great job at writing blogs, but they are not the ones selling the homes. As one of my agents commented, these companies do not know about home improvements or crime in the area they are selling. These tech companies only know numbers.
The main reason these tech companies won’t make it is when the market goes south, and the margins dry up. Mostly, because people do not trust computers, technology does not help indecisive people decide.
Day 9: Send 20 emails to your customers, reminding them you have a complete property management division with vetted vendors who can help them with repairs and more. Remind them you are there for them year round and not only when they are thinking about selling. As a bonus, call out a particular vendor you like and copy that vendor. Both parties will love you.
PS. Please do not forget to give thanks, update your calendar (before your day starts), call your accountability partner, and kiss your spouse.