Data suggests that job security for real estate agents may be uncertain as technology continues to disrupt the global workforce. The question arises: How significant is the risk to Realtors, and what can agents do to survive in this changing landscape?
The Job Security Apocalypse
For years, experts have been debating the future of real estate agents, and while they haven't been replaced yet, an Oxford study suggests that the end may be closer than we realize. However, there may still be hope if individual Realtors take immediate action to secure their positions.
We have been warned that up to 80% of jobs could be automated and taken over by robots in the near future. Despite this, many people are not taking this threat seriously enough. They are not investing in retraining or developing the skills necessary to adapt to the changing job market. The workplace is evolving rapidly, and we may be inadvertently contributing to this transition without even realizing it.
Think about it: finding a cashier in supermarkets or fast food joints has become increasingly difficult, thanks to self-checkout systems and food delivery apps like Uber. Airlines are doing away with check-in counters, and we can now learn new languages or how to surf through free YouTube videos. Despite these changes, reports show that we are working more hours than ever before, but unfortunately, earnings have remained stagnant.
According to a global wealth report by Credit Suisse, millennials, despite earning college degrees at twice the rate of previous generations, are less wealthy than their predecessors at the same stage of life.
The Future of Real Estate Agent Job Security
Since 2008, thousands of individuals have entered the real estate industry, including investors, a new generation of Realtors, and entrepreneurs launching tech startups. However, an analysis of over 700 occupations by Oxford University indicates that real estate job security is at the highest risk due to AI and technological advancements.
Here is the percentage likelihood of automation for various real estate jobs in the near future:
- 97% for Real Estate Brokers
- 99% for Telemarketers
- 98% for Loan Officers
- 86% for Real Estate Sales Agents
NAR, which started with just 120 founding members in 1908, now boasts over 1.4 million member agents. However, even without new technology, the level of autonomy buyers and sellers can manage without an agent should raise concerns for agents regarding their future income options.
Is Real Estate Agent a Good Career in 2022?
The near future will not be dramatically different from the current real estate agent job landscape. In fact, there are instances where technology and automation can assist Realtors. For example, platforms like UpNest connect agents with pre-screened, transaction-ready clients, saving them time and effort.
Is the Future of Real Estate Agents Doomed, or Just Different?
When we consider the jobs humans currently perform, it becomes apparent that human involvement is crucial for tasks that computers cannot perform to the same level of proficiency. Those who have bet their financial futures on jobs that can be easily automated, such as taking orders or driving for Uber, may find it challenging to survive without significant income from other sources. However, professions like brain surgeons, fashion designers, and marketing managers appear to be in safe positions for now, with a low chance of automation (according to current numbers).
While there are still drivers, chefs, and lawyers, their work has evolved significantly. Those who have succeeded in these fields can expect their careers to last.
In the real estate industry, many tasks can already be automated, such as home searches, property value estimates, and researching neighborhoods. In fact, a scene from the 1989 movie Robocop predicted that home showings in the future would be conducted through prerecorded video screens. When it comes to real estate agent job security, it seems tenuous at best, especially in the realm of science fiction.
However, there are skills that are less likely to be automated, including professional negotiations, crafting compelling property descriptions, creating contracts that protect buyers and sellers, resolving issues during transactions, analyzing data, and acting as a buffer to maintain seller privacy.
How to Improve Your Job Security
To preserve job security, real estate agents should consider implementing the following strategies and tactics:
- Be fast to adopt and integrate new technology: Embrace technology that can enhance your efficiency and effectiveness.
- Increase volume to offset downward pressure on commissions: Find ways to increase the number of transactions you handle to balance out potential commission reductions.
- Lower customer acquisition and operating expenses: Look for cost-effective methods to acquire clients and streamline your operations to improve profit margins.
- Focus on personal service and delivering a great experience: Differentiate yourself by providing exceptional customer service and personalized experiences.
Real estate agents should also identify which demographic groups are most likely to require their services in the future. Experienced repeat home sellers and buyers may try the DIY approach, while first-time homebuyers and luxury home sellers who value service and privacy may still seek the assistance of an agent.
Is Being a Real Estate Agent a Dangerous Job?
Being a real estate agent often involves working with unfamiliar individuals, sometimes alone. It is important to take precautions such as asking for identification and having someone accompany you to appointments with buyers. Additionally, having a backup plan during open houses can provide an added layer of safety.
Prepare for the Future with UpNest
The latest research may not seem promising for the majority of today's real estate agents. However, platforms like UpNest can help agents grow their business. By leveraging technology and a tech-savvy platform, agents can streamline the process of connecting with home buyers and sellers who are ready to take action.
In conclusion, the future of job security for real estate agents may be uncertain, but by embracing technology, providing exceptional service, and adapting to emerging trends, agents can position themselves to thrive in a changing industry.