From business practice changes, to a slowing housing market, to rapidly advancing technology, real estate agents have had to adapt quite a bit over the past few years. Still, homebuyers find them more important than ever.
Data from Cotality shows that while more than 500,000 agents have entered the industry over the past decade, home sales have fallen by roughly 290,000 homes. According to Cotality, this has led to fragmentation, with top-performing agents, who have embraced data tools and segmentation models, on one end and generalist agents at the other.
In a recent survey of over 1,000 recent homebuyers and prospective homebuyers, Cotality found that 73% of buyers are conducting their own research during the homebuying process. However, 88% said they want a human as part of their homebuying experience, with 45% saying that they expect their agent to provide guidance from start to finish. Additionally, while 27% of respondents said they expected the role of technology in their transaction to be beneficial, most respondents still relied on their agent to help bridge the gap between steps in the homebuying process.
Tech is good but relationships are better
“Digital tools have streamlined the exploration of home options and help navigate the complexities of the shopping and buying experience,” Amy Gromowksi, the head of data science at Cotality, said in a statement. “But as you begin to seriously consider one of the largest financial — and emotional — transactions of your life, you need a trusted partner who is going to help you navigate the complexities. You’re looking for someone who helps you understand with confidence, and that’s not a machine — not yet.”
As more homebuyers conduct their own online research during the buying process, Cotality believes that, to be successful, agents must shift from being a source of listings to an interpreter of listings. According to Cotality, in the future, the agents who succeed will be the ones connecting the dots for clients by doing things like flagging early risks and simplifying the complexity and logistical challenges of the buying process.
True understanding remains elusive for buyers
“Interfaces promise ease. Algorithms anticipate preferences before they’re made explicit. But transparency and true understanding remains elusive. Listings don’t explain that flood maps in the area are about to update. Recommendation engines don’t necessarily explain why a pre-approval disappeared. Monthly mortgage payments don’t necessarily account for a future with rising insurance costs,” the report states. “The promise of a seamless integration for accurate insights too often falls short.”
With just 8% of recent buyer respondents reporting that they felt confident about their transaction even after finding the right home, and 93% of buyers reporting that they dealt with at least one moment of doubt, confusion or pressure, it is clear that despite all of the technology tools available, buyers still need the guidance and reassurance of human real estate professionals. This is also reflected in nearly 75% of recent buyers reporting that their agent provided them with useful guidance during their homebuying journey.
Expectations are that buying a home will be stressful
Additionally, just 7% of buyers found the process straightforward, while nearly half (46%) said they expected the process to be stressful. The report also found that when it came to many expectations, what buyers anticipated going into a transaction was much different than what actually played out. At the start of their homebuying process, 33% of recent buyers said they expected having to make tradeoffs to find a house; however, 70% reported giving up something on their wishlist to successfully find and purchase a home. Other large discrepancies surrounded having to make multiple offers, which just 34% expected going in and 63% reported post-closing.
The value of an agent is clear
“The value of an agent today lies in their ability to serve as a truly informed advisor — someone who can distill complex property data and translate it into actionable insights tailored to each client’s unique goals. Agents provide the context needed to navigate what can often be conflicting or overwhelming information,” Kevin Greene, the general manager of real estate solutions at Cotality, said in a statement.
Looking ahead, while some agents might be intimidated by the wave of tech-savvy, digital-first Gen Z homebuyers entering the market, they should take comfort in knowing that despite all of the information and services available online, 59% of Gen Z buyers reported that the process of finding a home feels overwhelming.
In total, 90% of future buyers say that some part of the homebuying process is overwhelming, with over half (54%) identifying finding a home to be the most daunting prospect.
Personalized information can’t be found through a public portal
“Clients don’t need another person to curate more listings. What they want — and need — is more context around each listing: Why this house? Why now? What don’t I understand in terms of potential upsides or downsides,” Greene said. “An agent who can explain why ‘this home best fits your budget, your timeline, and your risk profile’ becomes indispensable — even if the buyer already found it online first. They cannot get that personalized information on a public portal.”
When it comes to finding the right agent, survey respondents overwhelmingly choose comfort as their number one priority at 80% of respondents, compared to 47% for convenience and 42% who choose loyalty. Additionally, 75% of recent buyers said they were likely to work with the same agent again due to the trust they developed.
“The challenge with homebuying is that it’s not something that most people do very often,” John Rogers, Cotality’s chief data and analytics officer, said in a statement. “So, by wrapping technology with human guidance, we can offset the lack of familiarity with trust because these professionals are familiar with the data and systems, allowing them to signal potential pitfalls or opportunities to help buyers make the right decisions.”
English (US) · 