Real Estate Agent Market Analysis
- According to a recent Statista survey, 94% of United States consumers derive value from real estate agents' knowledge of the purchase process. In another survey conducted by the National Association of Realtors (NAR), 52% of buyers revealed that having an agent to assist them in ﬁnding the right home was what they prioritized when choosing an agent.
- An analysis of customer reviews for some of the biggest real estate companies in the United States reveals that Americans are not satisfied with the way real estate agents communicate with their customers. Some consumers have complained of call center representatives and real estate agents being impatient, rude, and unfriendly.
- RE/MAX takes pride in being ranked as the "most trusted Real Estate Agency brand by American shoppers." The company claims to be "the most recommended name in real estate," with over 140,000 agents in more than 110 countries and territories.
This research provides a description of what consumers feel are the pros and cons of working with real estate agents. We focused specifically on pros and cons from a consumer perspective (e.g. survey results, comments, or similar), not pros and cons as described by realtors or other professionals in the real estate industry.
Also, contained in this report, is a competitive analysis that features the messaging and positioning of established real estate companies/realtors as well as younger realtors.
PROS OF WORKING WITH REAL ESTATE AGENTS
More Knowledge of the Purchase Process
- According to a recent Statista survey, 94% of United States consumers derive value from real estate agents' knowledge of the purchase process.
- In another survey conducted by the National Association of Realtors (NAR), 52% of buyers revealed that having an agent to assist them in ﬁnding the right home was what they prioritized when choosing an agent.
- Among respondents in the 2021 NAR survey, 90% of United States home sellers revealed that they worked with a real estate agent in selling their home.
- Review comments provided by buyers and sellers that patronize Keller Williams Realty, one of the biggest real estate companies in America, reveal that most customers have had a positive purchase experience with agents.
Better Negotiation Skills and Market Knowledge
- Ninety-one percent of US consumers derive value from realtors' knowledge of the real estate market, while 76% see their knowledge of the local area as an advantage.
- This knowledge of the market and local areas enables agents to answer consumers' questions, clear their doubts, and guide them to find what they are looking for.
- Besides helping consumers to locate properties that suit their needs, real estate agents also help to negotiate better deals for their customers. 82% of US consumers prioritize this skill when choosing their agent.
- A North American study further shows how consumers perceive the personalized support offered by an agent as a key part of their purchase journey. This support takes the burden of "pricing, negotiating, and closing" off consumers' chests, ensuring success and enabling them to focus on other things.
CONS OF WORKING WITH REAL ESTATE AGENTS
- An analysis of customer reviews for some of the biggest real estate companies in the United States reveals that Americans are not satisfied with the way real estate agents communicate with their customers.
- Some consumers have complained of call center representatives and real estate agents being impatient, rude, and unfriendly. For instance, one customer tried to call and schedule a property viewing on five different occasions without receiving any feedback.
- The lack of professionalism and communication has been mentioned on various review platforms, and for various top brands, including Keller Williams Realty and Coldwell Banker Reviews.
- Across review platforms, consumers have either complained of being targeted with too much marketing/promotional material (such as fliers and emails) or not having enough communication (i.e. brands not returning their phone calls and texts).
- Research reveals that 89% of US consumers value communication skills as one of the top qualities in a real estate agent. However, this quality appears to be missing so far.
Lack of Transparency/Integrity
- Real estate consumers in the United States have complained about the lack of transparency in their dealings with clients. Consumers have accused US real estate companies of lying about their service offerings, with some describing a real estate agency as the worst ever. In some cases, customers feel that they have been exploited at their lowest point.
- While the expertise of a realtor is important to United States consumers, character traits are even more important to them, with 98% prioritizing an agent's honesty and integrity. Unfortunately, US consumers are yet to perceive realtors as people with integrity/transparency.
- According to a RE/MAX survey of consumers in North America (the United States and Canada), trust, ease of communication, and familiarity are among the traits that are very important to customers during the stages of their home buying and selling journey.
- Sixty-one percent of survey respondents stated that familiarity and trust "would increase in importance when choosing an agent in the next two years." Another 60% stated that prompt responses and ease of contact would become more important.
MESSAGING AND POSITIONING: ESTABLISHED AGENCIES/REALTORS
Keller Williams Realty
- Keller Williams (KW) takes pride in being the sales force that holds the top spot (number 1 position) in agent count, sales volume, and units.
- The agency also boasts of being "home to the Tech-Enabled Agent."
- According to KW, its agent-centric business model combined with its proprietary technology makes it "the only real estate company that offers customers the experience they want."
- KW markets realtors as people who have the best knowledge about the market a client (buyer or seller) is interested in.
- The company claims that its experts can help to save customers money and get them the best deals easily, quickly, and honestly.
- It also states that its team would help guide customers through all steps of the mortgage process.
- RE/MAX takes pride in being ranked as the "most trusted Real Estate Agency brand by American shoppers."
- The company claims to be "the most recommended name in real estate," with over 140,000 agents in more than 110 countries and territories.
- RE/MAX asserts itself "as one of the leading real estate franchise companies with the most productive sales force in the industry." It claims that "nobody in the world sells more real estate than RE/MAX."
- In describing the role of a realtor, the company draws people's attention to the fact that there are a limited number of homes in the current United States market. Therefore, buyers and sellers "need an agent with the right connections, technology and strategies to achieve [their] home buying or selling vision."
- Also, the company states that, if a buyer or seller is feeling overwhelmed and wants someone to take the wheel, or they just need a second opinion, they "can be rest assured a RE/MAX agent is the right agent for any level of service, in any market condition."
- RE/MAX claims that its team knows their local market, communities, and schools — both as neighbors and agents.
Coldwell Banker Real Estate
- Coldwell Banker asserts itself as a brand that represents leadership and success. Established in 1906, the company "has grown to become one of the premier residential real estate organizations in the world."
- The brand positions itself as an agency that helps sellers get more value for their homes. To convey this message, it uses the following words: "Is your home worth more than you think? Get an accurate CBx home value estimate."
- In describing the role of its realtors, the company states the fact they are highly knowledgeable about the local market and are ready to assist with clients' searches.
- The company put it thus: "Coldwell Banker® agents and brokers are knowledgeable about the local real estate market, and ready to help with your real estate search."
MESSAGING AND POSITIONING: YOUNGER AGENCIES/REALTORS
Matchmaker Realty (Adam Gurske)
- Established in 1984, Matchmaker Realty of Alachua County, Inc. asserts itself as a company that helps people find any home they desire in Gainesville. The company uses these words to deliver this message: "We can HELP YOU with ANY HOME In Gainesville!"
- Adam Gurske is the associate broker at Matchmaker Realty.
- It claims to be large enough to serve clients' needs, yet small enough to care. The company promises to treat its customers like family. Its staff treat each other like family as well, fostering a community where agents support each other to provide better service for their customers.
- To emphasize its family work culture, it uses this tagline: "Where You're Treated Like Family!"
- The company takes pride in its "exceptional customer service and attention to detail in a small boutique style atmosphere."
- The company's message aimed at persuading people to work with its realtors is centered around guiding customers and simplifying the purchase process.
Habitat Land Company (William Hardin)
- Habitat Land Company describes its business as a "true grassroots approach to the rural real estate market." Just like its logo, the acorn signifies "a story that starts small, grows and branches out."
- The company claims to be exactly what the acorn represents: the "essential building block, the foundation."
- To describe what sets it apart, the company uses the following statement: "We are hunters, farmers, conservationists, landowners and Habitat managers, just like you, operating a real estate brokerage for You."
- William Hardin is the executive broker and co-owner of Habitat Land Company.
- In describing why people should work with its realtors, Habitat Land Company promises sellers that it would present their property publicly via the web and adverts, both digital and print. It can also use a private and direct contact approach to help sell the client's ground or lodge at a maximum price.
- The brand states that it is extremely proactive in its daily quest to sell customers' property, rather than waiting and hoping for potential buyers to respond.
- Habitat Land Company makes the same promise for its clients who are buyers.
Navy To Navy Homes — (Bailey Jordan)
- Navy To Navy Homes makes a very bold statement in its value proposition. It places the following message boldly on its website: "60-Day Sell Guarantee, Or It's FREE."
- It claims that the team is so confident in their ability to list a customers' home and get it sold, that they guarantee to sell their home in 60 days, or they would sell it for free.
- Bailey Jordan is an associate broker and the co-founder of Navy To Navy Homes.
- The company asserts itself as the "market experts for everyday Real Estate needs in Jacksonville, Florida."
- This company sticks to its 60-day promise as the core bait to lure people into patronizing its services as a realtor. It does not make any further promises. The 60-day promise takes center stage and draws all the needed attention.
- While extra promises are not made, reviews are posted to prove the competence of the team.
For this research on "Real Estate Agent Market Analysis," we leveraged US consumer surveys and review platforms, as well as the most reputable sources of information available in the public domain, including UpNest, RateMyAgent, and PR Newswire.