Future Challenges For Realtors, In 2019, the National Association of Realtors (NARs) a survey report of 60,000+ executives and senior management at real estate companies, both commercial and residential, cited the following:
- 40% expected increased competition from virtual firms over the next year.
- 58% expressed concerns over the millennial generation’s ability to buy property, while 46% were worried about their interest and view of homeownership.
As the world slowly recovers and heads into a post-COVID-19 period, it’s undeniable that times are changing in a way that few had been able to predict and prepare for. The real estate industry has not been immune to these changes. This article will help point out to you what kind of challenges that are ahead for realtors in the years of 2020 -2022.
1. Economic Recovery Post Pandemic
Worldwide, the corona virus pandemic rendered momentous segments of economies injured; leisure and hospitality, air travel, retail, and construction should expect slow rebounds into 2022. Slowed down progression in the construction sector will lead to slowed down business for realtors as home owners and potential buyers experience an injured economy slowly trying to get back onto its two feet.
2. ESG
Environment, Social, and Governance (ESG) criteria are a set of principles for a company’s operations that socially conscious investors use to assess potential investments. The requirements are as follows:
- Environmental – considers how a company performs as a steward of nature.
- Social – examines how a company manages interactions with employees, suppliers, clients and the communities that which they operate in.
- Governance – deals with a company’s leadership, internal controls, audits, executive pay, and shareholder rights.
“ESG has been recognized as a wise risk mitigation strategy that’ll supply long-term value creation in the real estate industry.”
The Counsellors of Real Estate
3. Technology
The advancement of technology will result in specific trends going from “nice to have” to “mandatory,” Such may include contactless doors and lifts, air and water quality monitoring, and regulation & health screenings for contractors and facility staff. The result of such spaces will create a surrounding that’s safe and modern as property owners and managers prove to residents and tenants that they’re in a secure and healthy environment. Home buyers are more likely to be attracted to a property that’s technology-integrated than one that is not. Realtors whom are not keen on embracing technology will face the massive challenge of competing with those that do, of which will not be a level playing field.
As a realtor, you should continuously research new trends and (technological) advancements to ensure you stay on top of your game. Remember that investors are now more attracted to invest in a company that integrates ESG criteria into their existence alongside being successful. As times change, adapt! Those who will not adopt this will become one of the Future Challenges For Realtors
