Technology vendors often think they know what customers want. At Delta, we ask them. Our client broker/owner groups give us constant feedback about our products and services.
But beyond our client base, do we really know what other broker/owners and top brokerage executives are thinking, what they want…and need?
We decided to reach out, listen and respond.
In December, we launched the new Delta Real Estate Leadership Survey. We asked brokerages nationwide to share their thoughts on the direction of the industry.
We received responses from more than 100 individual broker/owners and top executives whose firms collectively were responsible for more than 60% of all real estate transactions last year.
The survey confirmed that most brokerage leaders share the same pain points. In 2023, they continue to struggle with razor-thin margins and are focused on cutting costs.
More than half (53%) of the leaders see their profitability decreasing this year and their total transactions dropping from last year. One of the most common answers to the single “best thing” their brokerage did in 2022 was related to activities that cut costs.
Yet more than half (56%) of the real estate brokerage leaders who responded believe their brokerage will increase their local marketshare. They see opportunities even in a chaotic market.
Recruiting and retention dominate
Brokerages also believe agent growth is crucial to their strategy to survive—and thrive. The Delta survey revealed that the top business challenges today are:
- Recruiting new agents (63%)
- Reduced profit margins (48%)
- Recruiting top producers (44%)
- Agent adoption of technology offerings (39%)
- Finding ways to reduce expenses (39%)
Broker/owners are also putting a renewed emphasis on training. The market moved so fast during the pandemic that there often wasn’t enough time to train new agents.
In our survey findings, real estate brokerage leaders gave themselves a “C” grade (74%) when asked to assess their training of new sales associates during the pandemic (2020 and 2021).
The good news is that 60% of brokerage leaders said they would increase their coaching and training of newer agents in 2023.
What brokers want from tech vendors
The survey also told us that the all-in-one digital marketing platform is essential in 2023, with 63% of real estate executives saying “all-in-one marketing platforms” are valuable or highly valuable to their brokerage.
Finally, tech vendors are also being forced to constantly improve: 86% of brokerage leaders said their tech providers need to deliver ongoing innovation to keep brokerage technology “cutting-edge.” It’s why tech firms with legacy systems will continue to lose clients, and why the consideration for the best tech firms will be a laser focus on continuous innovation that gives brokerages what they want and need.
Michael Minard is CEO and owner of Delta Media Group, a leading and trusted technology partner for many of real estate’s top brands, including 75 LeadingRE affiliates, over 50 top-ranked brokerages nationwide. Delta is 100% family-owned and operated. For more information, visit https://www.deltamediagroup.com.
