The cost of leads, the lack of an established sales process, not knowing where the offer is in the sales process, and complying with real estate agent laws are some of the biggest challenges real estate agents face. Adapting to new technologies is essential for agents to stay competitive in the market. It's important to understand why as well as how when it comes to new technologies. Training materials and technical support are available to help agents focus on what they do best.
Many people think that all fees go directly to the agent's bank account, but running a business requires more than that. Inventory is essential for income, and with a shortage of inventory in the markets, both new and old agents can anticipate long and arduous searches to find sellers. New agents may have difficulty finding sellers due to their lack of reputation. Adaptive reuse 2.0, also known as “The Neighborhood Approach”, is a term that is gaining traction in the industry.
It aims to address the challenges of what to do with missing suburban malls and large empty retail stores that are surrounded by attractive and affordable neighborhoods. Projects have been completed or are underway to help reconnect communities, prevent blight, and restore green spaces. Regulatory uncertainty at the federal level is a challenge for real estate brokers due to changing policies, priorities, and the proliferation of federal regulations that address all types of real estate, land use, and environmental priorities. Online ad portals have minimized the role of an agent in buying and selling homes, making it difficult for agents to remain relevant.
Agents must also be prepared for difficult negotiations with buyers and sellers. Real estate investors must measure and report (and in some cases publicly disclose) risks related to energy and water use, waste, carbon emissions, and climate change. Commercial real estate debt may have been too rich in 2020, so investors should be prepared for potential changes in demand next year. Agents must also be prepared to deal with people in high-stress situations and on emotional roller coasters.
Delays in deliveries, rising costs, labor shortages, and lack of materials are affecting almost every business and their related real estate. A clear, stable, durable, and predictable regulatory environment is essential for commercial real estate owners, developers, or financial partners. Real Estate Counselors have identified current and emerging issues that are expected to have a significant impact on all sectors of the real estate sector.