Why Real Estate Sales Will Always Be a Relationship Business
A Rebuttal to “It Is No Longer A Relationship Business – Here’s Why” By Chris Smith of Inman Next
“Relationships are all there is. Everything in the universe only exists because it is in relationship to everything else. Nothing exists in isolation.” – Margaret Wheatley
Chris makes a stunning proclamation and he knows it (“I am prepared for backlash” he writes.) In a new post, Chris makes the following declaration:
“Real estate is a relationship business.” If I only had a nickel. Typically I hear the “relationship business” line when discussing technology and social media. It isn’t about the platform it’s about the people. I completely agree. Where I disagree is in the stance that I want to have a relationship with my Realtor. I don’t. In fact, I can’t even imagine it. My argument is that I am not alone….I view buying or selling a home as a transaction, not a process I want to get a new friend out of. Especially on Facebook by the way. When I leave the doctors office I certainly don’t expect to have him join me for a latte and follow me on Twitter.”
Now I don’t know Chris. I have just read his blog posts over the years, I have no idea what his background is, and it is obvious that he is one smart guy and someone that cares about real estate agents achieving greater success.
It seems to me Chris is saying that he doesn’t need to be a friend with his agent in order to do business with them, he wants a agent that can help him make a smart real estate transaction while providing a BRILLIANT customer experience.
Fair enough.
But here is my question to Chris, how do you know that the agent you are dealing with is competent, trustworthy, and honest if you don’t develop a relationship with them or be referred by someone you trust that has a relationship with that agent? These are things that real estate clients look for in an agent.
From 2010 NAR Profile Of Home Buyers and Sellers
Real estate agents should have one daily objective: to identify and assist those individuals or couples that have a desire or need to buy or sell property. To do so we only have three options, market to people we haven’t met, generate referrals from individuals that we have current relationships with, or go out and meet new people that help us reach our goals. The reality is that more than half of real estate clients do business with an agent that has been referred to them or that they have used before.
From 2010 NAR Profile Of Home Buyers and Sellers
From 2010 NAR Profile Of Home Buyers and Sellers
So to say that real estate is no longer a relationship business seems really strange.
The truth is prospective real estate clients want three things from an agent:
- Help buying or selling a property.
- Assistance making a SMART real estate decision.
- A superior customer service experience.
How does a prospective client decide on an agent to help them if they don’t rely on their existing relationships? They interview an agent to determine if the agent can satisfy the three above needs by developing a relationship to make an educated decision as to whether that agent is competent, trustworthy, and honest.
While prospective clients might not want to be best friends with their agent, they do want a professional relationship. You may not be friends with your doctor, but you tell him about your medical history, your health habits, and rely on him to help you stay healthy. If the doctor is able to do these things, you go see that same doctor because you now have a relationship with that doctor. You recommend him to others that you have a relationship with when they need a doctor.
And for agents to be successful in their business, they must consistently build new relationships, nurture existing ones, and cultivate the type of relationship with their clients that their client desires.
Real estate sales will always be about building relationships. Relationships that are built on an agents ability to help their clients achieve their goals. Realtionships that are built on trust and integrity. Relationships that lead to referrals and repeat clients.
I will agree with Chris that most prospects do not want a personal relationship with their agent; however, they rely on their personal and professional relationships in choosing an agent. And agents depend on building their personal and professional relationships in order to connect with prospects, and they rely on the professional relationship they build with their clients to guide them through the process to provide them with what Chris wants - his transaction handled brilliantly.
Everything about business comes down to PEOPLE. Where in business can we escape the impact of human care, human creativity, human commitment, human frustration, and human despair? There is no reason for anything in business to exist if it does not serve the needs of people.” – Bruce Cryer
