Connect with us

Op/Ed

Algorithm predicts uncertain future for real estate professionals, now what?

A new study predicts that real estate professionals are at risk of being replaced by machines, but is that possible, and if so, how can the industry circumvent this?

Published

on

uncertainty ahead

Is it War of the Worlds all over again? I’m probably dating myself when I tell you that on the night before Halloween in 1938, millions of radio listeners were shocked when radio news alerts announced the arrival of space aliens. At that time, listeners panicked when they learned of the Martians’ attack on Earth. Many listeners ran out of their homes screaming, and others were said to have packed up and fled.

What radio listeners actually heard on this day was a portion of Orson Welles’ adaptation of The War of the Worlds by H. G. Wells. And despite the fact that this was fiction, many listeners believed what they heard was real.

The concept of machines replacing up to 50 percent of the U.S. workforce may incite a level of panic not much different from that which occurred on Halloween day in 1938. Unlike the publicity stunt however, the mechanization of America may, in fact, be true.

Will Machines Take Over the Work Force?

Just last month, Bloomberg reported that 50 percent of the U.S. workforce would be at risk of being replaced by machines. In a study entitled “The Future of Employment: How Susceptible Are Jobs to Computerisation?”, Frey and Osborne shared what happened when they created an algorithm that analyzed the types of jobs subject to automation and predicted the probabilities of future automation for 702 different occupations.

The results were particularly favorable for those working as recreational therapists, since this field was the least likely to be automated with the probability of automation listed at 1/20 of 1 percent. If you believe that an algorithm can predict your future, this study does not bode well for telemarketers (automation probability of 99 percent). Loan officers came in at 98 percent and real estate professionals came in at 86 percent.

Will a Machine Replace the Real Estate Agent?

It’s true that a lot of what real estate professionals do every day can be automated or perhaps handled via computer by the consumer without need for an intermediary. That’s probably what resulted in the Frey and Osborne automation probability of 86 percent.

In 2013, Seth Godin wrote about this very issue. Godin stated, “If your project or organization depends on knowing things that other people don’t know (but could find out if they wanted to), your days are probably numbered. Ask a travel agent.” What Godin is referring to is the fact that years ago, we phoned a travel agent to make flight and hotel reservations. Now we can search locations, and make our own reservations online.

Not unlike the travel agent, real estate professionals have previously provided information that the consumer didn’t have: information about properties available for sale. Now, of course, much of that information is available online free of charge.

So, what can be done to avoid the potentially numbered days of the real estate professional? The solution “is obvious,” Godin says, “provide…non-commodity service and customization.”

How to Provide Non-Commodity Service and Customization

Real estate professionals must think long and hard about how they provide a unique value in the marketplace, and they must market that value to their current and future clients in order to assure that the machine does not wipe them out. And it’s a good idea to start on that now before “the war of the worlds” becomes a reality.

Here are four ways that a real estate professional can provide value in the current and future marketplace.

  1. Process navigation. Individuals who only buy and sell a few homes in their lifetime will need assistance in navigating an extremely challenging process. Real estate professionals know what to expect, how to avoid legal issues, and how to make the process of selling what is possibly the most valuable item in an individual’s portfolio as easy as humanly possible. Consumers may believe that they understand the process. But, will they know how to respond correctly when the seller takes the bathroom fixtures or if there is a rat infestation prior to closing?
  2. Paperwork preparation. Depending upon the state in which you reside, the paperwork required for state compliance can be upwards of fifty different documents or contract addenda. While a computer program may be able to spit out a list of documents, will that list be correct in each situation? Will the consumer know how to complete them? Will the consumer understand the legal ramifications of each document?
  3. Transactional Nuances. Lots of real estate transactions have very subtle nuances—little issues that are hanging out on the sidelines that need to be resolved prior to closing. These may include clouds on the title, financing limitations, encroachment or boundary issues, and zoning and permit issues. Only an experienced real estate professional would be attuned to these nuances in a way that can get the deal to the closing table the very first time. No computer can do that.
  4. Personalized Customer Service. While the Internet is great for getting the word out about a property or getting a document signed at record speed, there is no replacement for face-to-face communication. Personal consultations, as opposed to quick text messages, provide clients with the detailed information that they need in order to understand the scope of the real estate process. Additionally, busy real estate professionals have long lists of homebuyers who may be looking for a home that meets specific criteria. Agents can leverage personal connections to put a strong, solid deal together in no time flat.

What’s Next for the Field of Real Estate?

When asked about whether the future of the real estate professional will be mechanized anytime soon, Michael McClure, COO of T3Experts, stated, “I do think there will be a more-rapid-than-most-expect concentration of power in which those who leverage technology and other large societal trends most effectively will gain real competitive advantage and differentiation.” McClure also asserts is that it does not necessarily matter whether the information provided is accurate; those professionals who leverage technologies will have the upper hand.

Consumers will become increasingly reliant on the Internet as a research tool before selecting an agent to use in their next real estate transaction. McClure points out that previously “lots of agents have been able to hide behind the ‘ambiguity of information.’ That is, sometimes people don’t ask a lot of questions because they are simply not comfortable asking them.” McClure goes on to say, “I believe that’s a reason why the agent that does one or two deals a year can do one or two deals a year: because people often don’t dig very deep in researching agents.”

What McClure recommends is that agents “leverage things like advanced search technologies and the next generations of review sites.” It will be more important than ever, McClure states, “to actively manage your online reputation.”

How to Ensure That You Are Not Replaced by a Machine

There are actually some things that real estate professionals can do right now to attempt to protect themselves from the mechanization of their profession.

First and foremost, put a process in place to manage your online reputation. Set up Google Alerts for your name and the name of your company, if applicable.

Next, develop strategies to increase your online reviews. Utilizing the large syndication sites, Google, and Yelp, continue to build your online reviews. You can even install WP Customer Reviews, a plug-in for WordPress.

One final—and perhaps obvious—suggestion would be to continue to develop professionally. You need to be constantly reassessing your business model to be sure that what you are offering the public is “non-commodity service and customization” and not just Swiss cheese. (The profession of cheese sales, by the way, has an automation probability of 96 percent.)

Melissa is an in-demand business success speaker and author, as well as a real estate broker with thousands of short sale transactions under her belt. She leverages her experience as a short sale insider to motivate thousands of business professionals to plan their careers better, execute more effectively on their plan, and earn more because of it.

Op/Ed

Morning rituals of highly successful people – do you have one?

(EDITORIAL) From start to finish, the daily life of each successful person is very much dictated by their family and job. But there are definitely some patterns that we can all incorporate into our own morning rituals to achieve higher success and order.

Published

on

realtor working

Fleximize took a look at the morning habits of 26 of the country’s most successful individuals to include the President of the United States Barrack Obama, Arnold Schwarzenegger, Steve Jobs and even Oprah Winfrey.

What was discovered? Well, each of the men and women on their chart start their day early with time blocked out for exercise and meditation, breakfast and family. In short, things that are important!

Someone, somewhere coined it best: “If it has to happen, then it has to happen first!” Everyone has an “it.” Anyone who has managed to find professional success is surely embracing this philosophy. The first hour(s) of the day are used doing whatever is one’s top-priority activity. And no sooner do you start you risk the priorities of everyone else creeping in.

Interestingly enough, exercising in the morning is one of the group’s top priorities. It’s been said many times that exercise helps keep productivity and energy levels up and better prepares us for the everyday challenge of achieving all we can.

From start to finish, the daily life of each successful person is very much dictated by their family and job. But there are definitely some patterns that we can all incorporate into our own lives to achieve higher success and order.

An Insider article found that “the most productive people understand how important the first meal of the day is in determining their energy levels for the rest of the day. Most stick to the same light, daily breakfast because it works, it’s healthy for them and they know how the meal will make their mind and body feel.”

The Fleximize chart demonstrates that successful people consider the quiet hours of the morning an ideal time to focus on any number of things: important work projects, checking email, meditation. And what’s more, spending time on it at the beginning of the day ensures that it gets complete attention before others chime in.

So check the chart and find someone you can relate to.

BI points out that planning the day, week, or month ahead is a crucial time management tool designed to keep you on track when you’re in the thick of it. Using the mornings to do big-picture thinking helps you prioritize and set the trajectory of the day!

Continue Reading

Op/Ed

Security of client information is important, so change the process

(EDITORIAL) Too many companies have had security breaches, which is bad enough, but is the process for insuring client information safety too old to secure?

Published

on

security too old to function

While it’s clear companies seem to get hacked regularly, the steps taken to keep users safe are a joke. Companies still rely on asking personal questions in an effort to make users feel safe, but those attempts are laughable.

I wasn’t laughing earlier this week as I was setting up a few new accounts.

As anyone knows, creating accounts can be a real pain in the buttocks. But, since I’m kind of a geek, I would sometimes find the humor in choosing and answering my three security questions. (Wondering if I’d remember the answers.)

What band was your first concert?
What was your favorite dog’s name?
Where were your parents married?
What model was your first car?
Who was your childhood bff?

Cool.

I never thought much about the security questions until the last few times when I encountered a few like this:

In which city were you married?

What is the name of your eldest child?

At what time of day was your oldest child born?

How old was your father when you were born?

What?

I felt I had taken a step back in time.

Sure, these questions might be ok, if there were a lot of options, but these were four of the seven provided.

I’m not a super touchy person who gets triggered easily or angered at the drop of a hat. But, these questions made me question this process and its security.

Whether you’re a man or a woman, in this day and age, it’s quite possible you’ve never been married or had a kid. It’s also possible for some folks, they didn’t know their dad. Or, if they do, maybe they don’t want their security question asking how old he was when they were born.

But, the bigger question: Why so very personal? And, from a woman’s perspective, why so presumptive. It made me wonder: are the questions the same for a man or a woman of any age?

I can’t imagine a 22-year-old being asked about the birth of their eldest child. Or, where they were married.

These questions had to be options based on my age and gender.

I chose the questions I could answer like, where was my elementary school located.

But, I didn’t feel safer for answering. Somehow I felt like the company asking them was 1) Prying to gather personal data 2) Not concerned about safety 3) Was sexist.

As many others have argued, it’s time to shut this process down, if only for the fact that it doesn’t make us safer online. This is a practice that should be relegated to the past, just like the presumptive questions being asked.

Seems no matter where you look online, banks, retailers and even medical providers are hacked. Our information is floating in space on the interwebs.

Obviously, security is a top concern. Who wants to sign up for a service only to find out later, “OOPS, our bad, your information was hacked. Here, we will give you free credit monitoring for a month.”

Doesn’t cut it.

Continue Reading

Op/Ed

How we can prepare to slowly start going back into our offices

(EDITORIAL) At some point a supervisor, or manager may tell you to come back into the office. Are you dreading that call? If so, what can you do to prepare for it?

Published

on

Office return

Returning to the office is an inevitability for most of us. So how can we prepare to go back to work in a not-yet post-pandemic world?

Harvard Business Review (HBR) has some great feel good ideas about how you can return to the office. According to their article, you should “be a source of joy,” and “stock up on patience.” I’d love to live in a world where our situations allowed endless accommodations, but this is real life and as independent contractors, any broker can cut any agent at any time, so we have to seriously keep up and serve clients despite this chaos.

1. Assess your own risk.

Managers will have to work with every team member to assess their own risk and vulnerability. There’s a lot of unknowns at this point, including how schools will work and whether childcare is available. People who feel more vulnerable because of other health risks may need accommodations. I would like to think that workplaces should help to make accommodations as much as possible, but I realize that for some businesses, that may not be possible. Everyone will have to consider their own situation and advocate for their own needs.

2. Prepare for change.

Humans don’t always adapt to change very well. It’s time to start thinking about how the office will change when you return. You may be more isolated due to distancing protocols. There may be schedule changes to prevent too many people in the building at one time. The office may feel unfamiliar for quite some time, which is understandable. You may also find yourself responsible for cleaning your space more often. Expect to have many different emotions as you go through the next few months.

3. Realize that there are things out of your control

Returning to the office is going to be a transition. Focus on what you can control. Manage your stress. In an ideal world, your work would be proactive and provide honest responses to your concerns, but we all know those jobs are few and far between. Don’t expect the problems you had in your job pre-COVID to change. You’re just going to have to adapt to a post-COVID work environment. Only you can measure whether the benefits of your job outweigh the problems. Realize that there are many forces that you can’t change. Your broker or manager may not even be in control of some of those forces and has to adapt the same as you.

4. It’s not your place to change your company’s culture (unless you’re the broker)

HBR asks, “What part will you play in making (the transition back to the office) mean something extraordinary?” I’d like to posit that the transition back to the office doesn’t need to be anything special. It’s just part of the normal routine. Instead, I’d ask, “how can you deal with change while protecting your health and your family?” If your company is putting profits ahead of people, maybe it’s time to polish off that resume and look for a place with some decency.

Continue Reading
Advertisement

Our Partners

Get The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox!

Still Trending

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox