The Future of the Real Estate Agent

By Christine George

I sat down with our Founder and Chairman, Paul Mydelski earlier this week and asked

him about the future of real estate and the future of the real estate agent.  What I got was an interesting take on the future of technology and how valuable the real estate agent’s relationship is with the client.

Here’s what he said…

Christine: Paul, set the stage for us, what is the role of the real estate agent in today’s market and how has it evolved over the years?

Paul: Today, consumers have access to more information and more data than ever before.  It’s at their fingertips, available 24/7, and the quality of the information is getting better and better every day.  Real Estate agents used to be the keepers of the information.  Today’s agent is a trusted advisor and a hyper local real estate market expert; someone who has a deep understanding of the inventory, pricing, absorption rates etc.  He/She is also someone who understands the client’s individual needs and goals and then of course, today’s agent is an expert negotiator.

Christine: How do you see the agent’s role changing in the next 5-10 years?

Paul: The biggest change I see in the next 5 years is more automation. Consumer desire for on-demand showings, shorter processing time and a simpler overall process will force real estate agents to be immediately responsive and readily available to show a property.

I also believe that the advancement of the self-driving car is going to have a great impact on our industry.   When the self-driving car becomes mainstream, people will choose to live farther from their jobs because now the long commute is less painful.  They can make phone calls and work while they drive.  Agents will be forced to travel outside their local market to service their clients, which will force them to also broaden their knowledge and expertise of multiple markets.  This movement will cause a greater specialization of buyer agents, those who are willing to cover a larger geography in their business.

Christine: The real estate transaction hasn’t changed in the last 30+ years.  Do you see the transaction changing and if so, how?

Paul: I see the actual transaction changing in two ways,

1. At RE/MAX Leading Edge, we consider ourselves a paperless brokerage in part because we utilize an online transaction management system. Many brokerages however, are still using the old paper system.  These days, people are more transient and mobile.  The entire transaction must become completely paperless in order to meet the changing needs of the clients.
2. The other thing I see changing is the money exchange. All money will eventually be electronically transferred.

Christine: Let’s talk a bit more about technology.  What technology do you see having the biggest impact in the industry?

Paul: There’s still so much opportunity for technology in our industry.  Virtual Reality has become a very popular marketing tactic but imagine a buyer in China being able to view a property in Boston through virtual reality technology and making the purchase site unseen?  Incredible things can be created in this area.  As I mentioned before, I also believe the self-driving car will have a great impact on the market moving forward.  It’s a game changer with respect to the distance people are willing to live vs. work.

Christine: What improvement would consumers like to see during the home buying or selling process?

Paul:  I believe consumers want a one-stop-shop approach. If consumers could complete the entire real estate transaction through one source, and not multiple sources like mortgage, insurance, title etc.  I think that would be a great attraction.

Christine: Do agents still feel threatened or resistant to technology and if so, what technology are they most resistant to?

Paul: Third party search sources are still a threat.  The search portals are selling the agent’s listings back to them and that has created resentment among agents.  On-demand showings are growing and that’s requiring a significant shift in the way an agent currently performs.

Change is always uncomfortable and while it’s not always easy, I believe discomfort opens the door for growth, and those who are open to it, will find a way to demonstrate their value and continue to succeed.  At the end of the day, all the technology in the world cannot replace the human touch.  Real Estate has been and will continue to be a relationship business.  85% of the 2,000+ transactions that take place in our company come from repeat customers or referrals.   No technology in the world can replace the trust and the bond created between the agent and his/her client.