Real estate professionals are no strangers to competition, but they are now facing threats from sources they may not have considered. The rise of new industries, technologies, and social media personalities is impacting the real estate market. These forces often bypass traditional real estate channels, creating competition that can erode business for even seasoned agents. While many professionals are aware of ibuyers and DIY platforms, there are others to be aware of.
Understanding these new sources of competition and their impact is key to staying relevant, retaining client trust, and finding ways to stay competitive.
Social Media Influencers
One of the most surprising sources of competition comes from influencers on platforms like Instagram, YouTube, and TikTok. These creators cater to homebuyers and sellers by offering advice, neighbourhood reviews, renovation ideas, and even financial tips. They position themselves as relatable and trustworthy figures, often building deep, loyal audiences.
Influencers can monetize their platforms by partnering with For Sale By Owner (FSBO) sites, iBuyer services, or specific developers. In doing so, they can direct their followers to bypass agents entirely. By making real estate feel accessible without professional help, influencers subtly chip away at the perception of agents as essential participants in the process.
However, their generalized advice often overlooks the complexities and nuances of real estate transactions, which can lead to missteps or spread misinformation. This is where real estate professionals have an opportunity to step in, offering expertise and personalized guidance that influencers simply cannot provide.
Rather than competing with social media creators, consider working with them. Partner with local influencers to co-market listings, allowing their audience to see you as a trusted expert while benefiting from the influencer’s reach. You can highlight the value you bring, ensuring their viewers are better informed and can recognize what you offer.
Fintech Companies
Fintech companies like Rocket Mortgage are reshaping real estate by simplifying the mortgage process, offering fast, all-digital financing solutions that appear to reduce the need for agent guidance. Others promote fractional property ownership and passive investments, appealing to younger demographics seeking innovative alternatives to traditional homeownership. These platforms streamline transactions and investments, creating the perception that professional expertise is unnecessary. However, real estate professionals understand how a nuanced, experienced perspective and guidance are still critical for successful transactions.
To compete, real estate professionals should maintain a strong digital presence, and emphasize their ability to navigate complex transactions, offer personalized advice, and address the limitations of fintech tools, which often overlook local market nuances or legal requirements. Highlight how you can help those looking for investment opportunities, alternative housing arrangements, or other real estate solutions.
Internet Platforms
Big data platforms provide consumers with detailed market reports, comparable home valuations, and predictions for future growth. As these platforms improve, buyers and sellers increasingly question the need to rely on an agent’s market analysis, reducing the perceived value of professional services. However, this data is still no replacement for experience and industry knowledge when it comes to interpreting real estate market data and tailoring information to an individual buyer or seller’s unique situation. Again, this is where real estate professionals add value – taking the data and using it to provide actionable insights.
A key way to compete with internet-based platforms is to establish authority through your own digital presence. Post visually compelling home tours and behind-the-scenes content that showcases your market knowledge. Educate your audience with short, engaging videos about buying, selling, or investing. Be sure to respond to questions in comments and messages to build credibility and trust. In this way, you can provide more meaningful, accessible information to your audience, positioning you as the preferred source.
Leverage your own data tools, so you can also share detailed, actionable insights with clients and show them how your expertise complements these tools. Market the human touch. Emphasize your ability to handle complex transactions, navigate legal paperwork, and negotiate effectively – services that no data tool can fully replicate. Share testimonials or case studies that demonstrate how your experience has saved clients time and money.
Competition in real estate has expanded beyond traditional rivals. Social media influencers, fintech companies, and data-driven platforms are reshaping the way consumers engage with the market. While these challengers can erode the perceived value of real estate professionals, they also provide opportunities for growth. By embracing technology, building digital credibility, and emphasizing the unique, personal expertise that only agents can offer, real estate professionals can not only counteract these pressures but also thrive in an increasingly complex industry.
