Aug 3, 2023

Real Estate Agents Utilizing Personal Recommendations Will Be The Winners In 2023

Personal Recommendations
Linus Norman, Co-founder & CEO at heimo

Let’s cut to the chase and kick the door in straight away: Being a real estate agent, irrespective of the market, is tougher right now than in a very long time. Longer closing times, shortage of properties, and prices going one way while mortgage rates go the other. Fewer but more greedy buyers and fewer but more anxious sellers forcing agents to spend more time setting the right expectations than on actually closing deals. It’s a new reality to say the least, and it's here to stay.

$41.4 billion in real estate marketing spend

Most agents would agree with the fact that it’s expensive to acquire new clients, and it doesn't get any less expensive under these market conditions. The average marketing spend is usually holding hands (or maybe "is handcuffed to" would be more accurate) with the interest rates, and for every % the rate goes up, the marketing spend of your hard-earned money needs to follow suit. As the global real estate marketing spend is estimated to reach a staggering $41.4 billion by 2024, with online marketing accounting for 77% of that spending, few could argue against that there’s already a sh*tload of money being spent by real estate agents to acquire new clients.

Spending even more now but not to get more clients, but instead to compete in getting the same amount (or worst case, fewer) of clients? It’s worth saying again - it’s a new reality, and it’s a crazy expensive one. 

The power of personal recommendations for real estate agents

So, what can you do if you don't want to participate in the never-ending real estate marketing spend wars with no real winners? Luckily, there are smarter and more powerful alternatives, and with the upcoming launch of heimo, it will soon be easier than ever to get new clients to choose you as their trusted partner through the biggest deal of their lives. Through the power of personal recommendations, you’ll be able to reach potential clients from more places in much less time, with a lot less money and effort required. These recommendations will be visible as personal recommendations to everyone in their networks, as well as to potential clients from all over the world, and it's a new kind of warm leads.

In a report by NAR, 67% of clients in the US chose their real estate agent in 2022 through nothing but one (yes, one!) recommendation by friends and family. In the same study, 89% of clients would recommend their agent to friends and family if it was easy to do. On heimo, it will be easier than ever to recommend real estate agents for clients, and for you as an agent to gather recommendations not only from previous clients, but also from colleagues and partners in the industry, as well as friends and family. 

People trust people they know more than any other form of marketing

In the next few years, personal recommendations will become one of the most important and powerful tools for real estate agents world-wide, because people trust people they know more than any other form of marketing. It will also be the smoothest and safest way for buyers and sellers to find and get matched with trusted real estate professionals on any market in seconds, something which is extremely hard and time-consuming today.