Why is Real Estate Tech Adoption So Hard? 3 Tips to Flip the Script
The national real estate market is experiencing an unprecedented boom. Ask any agent or broker and they’ll tell you – it’s never been more competitive.
Inventory is incredibly low as the number of available listings was 23% lower at the end of 2021 compared to 2020, and 42% lower compared to 2019. That’s further compounded by the fact that there are a record number of agents competing for business. According to NAR, the number of agents nationwide has grown to a staggering 1.5 million. Plus, not only must real estate pros compete with traditional brokerages but new and non-traditional brokerage models that operate virtually and serve clients across the country are also encroaching on their opportunities.
Given this environment, how can you recruit and retain quality agents? How do you ensure your agents are highly productive and regularly convert prospects into clients? And how can you drive more revenue and experience year-after-year growth?
Technology
Technology can be your differentiator. It can help you compete and it can power your agents to become deal-closing superstars for your brokerage. To do so, agents must adopt modern real estate technology, including a CRM system like Chime that can handle lead management, marketing automation, and other key functions. In these hyper competitive times, the lack of effective real estate technology is a deficiency for any brokerage, and it is one factor that will hinder growth.
And yet, technology adoption rates among today’s real estate agents remain low. For example, the industry-wide adoption rate of CRM technology is only 20%. Why are so few agents taking advantage of CRMs and other tools available to them? Here are three common roadblocks and how to overcome them:
1. Selection
Evaluating, selecting, and implementing real estate technology isn’t always easy. Brokerages must research and explore different options, sit through demos, negotiate pricing plus more with multiple vendors, and finally work through the selection and implementation process. Some brokerages will evaluate between 15 to 20 different CRM vendors before making a final selection. And all of this must happen while the day-to-day business continues. There’s no way around it, engaging with that many vendors requires time and commitment, but that due diligence is worth it in the end as the technology of choice maps to your specific business needs.
2. Awareness
About 20% of agents are top performers who believe in technology and invest in marketing. Another 20% don’t use any technology at all often relying on existing networks and word-of-mouth referrals. The middle 60% is where you can drive greater adoption of technology — if you can make that group of agents aware that tools exist and that those solutions can help them reach top performer status. Consider this: nearly 40% of agents view a CRM system as their most valuable tool. Making your agents aware of the power of a CRM system and the benefit it can deliver can help increase adoption.
3. Onboarding, Training, and Support
Few real estate agents will be able to log into a CRM and immediately start using it effectively. They need an onboarding program, need regular training, and access to support when they run into problems. Often, it’s challenging for a brokerage to provide onboarding, training, and support directly. Look for technology partners that have resources agents can tap into easily to simply the entire process.
The next cycle of real estate will be dominated by those that are willing to use technology to innovate, automate, and streamline operations in any way possible. As buyers become more educated and new virtual models gain popularity, operating without key technologies such as a CRM to stay ahead of the competition is a big risk. If brokerages can select the right technologies, underscore the how they help agents, and support their team through onboarding and training, they’ll be able to capitalize on the efficiency, productivity, and performance CRM systems can deliver – no matter the business environment.
For more on how Chime can help you grow your business, book a demo.
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