The Consumer?s Renewed Focus: Part I

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By Walt Baczowski

RISMEDIA, Feb. 22, 2007-Last April, the Association Executives Committee of the National Association of Realtors published a report titled The Consumer: Catalyst of Change. This report identified early last year the impact that consumers are having, and will continue to have, on the real estate profession. It is interesting that Time magazine this year also identified the consumer as their Person of the Year.

In real estate, we have always known that exceptional customer service results in successful transactions and referrals. So what has changed, or is changing, with consumers that's resulting in the renewed focus? Although there have been many reasons cited in various publications, programs and presentations, here we will focus on two of the four primary drivers for this attention. Next month, we will focus on the final two items.

Consumer demographics is clearly the leading factor that needs consideration. With four generations in the real estate market, they represent a wide range of housing wants and needs. Between the oldest generation, now looking at assisted living or other such housing opportunities, Baby Boomers looking at retirement or moving down in housing size, Generation X either buying for the first time or moving up, to the Millennials, who are now entering the real estate market, each of these groups is making an impact on differing segments of not only the real estate industry but the economy in general.

The key to ensuring that a connection is established with the consumer is to develop a clear communication plan as soon as possible following the first meeting. It is amazing that with all the advances in communications within the past 10 years, the single biggest complaint we hear is a lack of communication. Many are due to avoid an unpleasant conversation or not desiring to pass along bad news.

As part of a communication plan, there needs to be a discussion regarding when is the best time to connect, by what means (i.e. cell phone, e-mail, home or office) and, how frequently. Then stick with the plan. Additionally, do not make assumptions regarding a communications plan. Remember, seniors represent one of the largest growing segments in Internet usage.

Technology advances will continue to present challenges and opportunities for the real estate profession. In this area, lead generation, lead tracking, transaction management applications and office management systems all will continue to grow and improve. The most significant challenge in this area is reviewing and determining which systems or applications best fit the company's operating style and are within budgetary guidelines.

As consumers become increasingly aware of the vast array of real estate information available to them from multiple sources, brokers need to differentiate the services offered through the firm to clearly show consumers how they can best provide either the marketing or assist with the search for a home.

Consumers today will be searching for properties on their own. Rather than trying to dissuade them from doing so, brokers should look at how they can provide assistance and guidance in their individual searches. Clearly, communications again plays a key role in staying in touch and building consumer confidence.

Walt Baczowski is president of the Metropolitan Consolidated Association of REALTORS®. To contact him, please e-mail walt@mcar-online.com.

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Sunday, March 21, 2010