The future of the estate agent: I went looking for the future of the estate agent in San Francisco. Will all estate agents soon have to look for a new job? Or will the estate agent survive after all? I went looking for the future of the estate agent in one of the most innovative cities in the world: San Francisco.
Contents
- SF REALTORS ASSOCIATION
- Open Houses
- Estate agent Shawn Kunkler
- Dina Hogg
- Influencer
- Conclusion: the future of the estate agent
SF REALTORS ASSOCIATION
Into the Uber and off to the SF Realtors Association (San Francisco's NVM). I was received kindly here, but the man behind the desk actually found my questions about the future rather strange. They were working on it, they had a number of magazines and there were new startups. But in his eyes, estate agents were far from extinct in a market as booming as San Francisco's. At that moment I thought they really weren't working on it at all in San Francisco. But when I sat on Union Square reading the magazines he'd given me, it turned out to be different after all. There are definitely new initiatives. There are various startups such as Offerpad, Knock, Opendoor and Zillow's instant offers. All these start-ups are set up to make a deal directly via an app or a website. These startups want to change the way homes are sold today. By offering cash money for a home straight away, sellers don't have to pay high estate agent fees and they get their money immediately. They can even make arrangements about the transfer date, so they have time to move. These offers are made within 24 hours. These companies have automated valuation models to determine the ‘fair market value’. These companies then sell the homes on again. Viewers can walk through the home without an estate agent. They get the code for the key box and can then make an offer. This is monitored with cameras.
Open Houses
To see how viewings work here, I looked up a number of homes on REALTORS, which is a kind of Funda. I requested a viewing. I immediately received 2 text messages asking me to call straight away. We could schedule an appointment right away. Estate agents here are very commercial and work 7 days a week, often until late in the evening. I chose to go to an open house, so that I could also see other people who were viewing. A home of approx. 27 m2 in a reasonable neighbourhood was for sale for $399,000, which converts to approx. €350,000. It was occupied by an elderly couple who had alternated between the single bed and the sofa there for approx. 20 years. The cleaning things stood behind a little curtain in the bath. The clothes hung between the packs of coffee and the fridge stood next to the bed. Every centimetre had been used. According to the estate agent it was a golden opportunity and a fair deal. It almost never happened that a home in this neighbourhood was for sale for such a low amount.
Estate agent Shawn Kunkler
The friendly estate agent told me about the world of an estate agent in San Francisco. There are approx. 5000 estate agents in the city. Around 400 estate agents call the shots in the city. As an estate agent, it's important to sit at various round tables. The more friends you have in the estate agency world, the more deals you can make. Almost all estate agents are self-employed. They work under a big agency name. This agency takes care of the marketing and the network. This estate agent explained how it works in San Francisco. Only the selling agent receives a commission. But there are also buying agents. The estate agents work together, but competition is cut-throat. Two estate agents who are friends, for example, always try to let each other have the deal. That way they have to share the commission between them. I asked him what he thought of all the new startups. He said it's difficult. These initiatives are putting their commissions under enormous pressure. The commissions they receive have gone from 6% to 2% in a few years, for example. However, the average home value is $1,000,000. The market is fairly traditional. The estate agent has a for-sale sign and a brochure, and reels off the features during the viewing. For the more expensive homes, they provide a nicer brochure, better photos and more days for viewing. The reason why estate agents in San Francisco would rather not innovate has to do with their current earnings. These are very lucrative at the moment.
Dina Hogg
Dina Hogg sees innovation differently. She bought a Mercedes Benz Sprinter. This became her mobile office. Straight after a viewing, she can show her clients all kinds of things. People can leave all their wishes and details right away. Together they can look at other options. Or drive straight on to another house. You can also drive around the city right away and decide together which neighbourhoods are up and coming. Show what's going to happen in a neighbourhood. That way clients immediately feel what they do and don't want. That's how they find the right home. On top of that, the driving office saves time. In between all her appointments, she can always carry on with her work straight away. That way she works as efficiently as possible.
Influencer
The estate agents here see the future of the estate agent as fairly sunny. Take Shawn Kunkler, the estate agent I met at the open house. He wrote a book about his findings on the market. He's very active on Instagram. He promotes the local businesses and the neighbourhood. He gives information about the market. He shows that he has knowledge. Because he's so active, people come to him for advice. By keeping his network up to date, he adds value. He's an adviser, an authority. Here he really is an adviser and a rock-hard salesman. He believes in cooperation between the startups and the best estate agents.
Conclusion: the future of the estate agent
The future of the estate agent: as estate agents, we will increasingly take on an advisory role. I realise this more and more as I walk around here in San Francisco. Sharing knowledge, showing what the city has to offer and what the developments are, and embracing technology. They can strengthen each other and give each other a wake-up call, so that the best remain. Would you like advice about buying a home, selling one, or simply want to know what the developments in the market are? You can! You can call me on 0640606437 or get in touch via the form.
