For most people, the process of searching for and completing the rental or purchase of a home or apartment is among the most stressful experiences they will endure, given the value of the transaction, and the relative complexity of the process. And although some renters, buyers, or sellers may choose to “go it alone,” some markets are sufficiently complex enough to require the services of a real estate broker to help them navigate the process.
New York City is a unique real estate market within the US; not only are the number of available properties relatively scarce, but the requirements for buying, selling, and renting are somewhat more complex than in other markets. For example, most residential properties listed for sale are either condominiums, where the purchaser is buying a unit within a larger structure, or a cooperative apartment, where the purchaser is buying shares in the corporation that owns a building, giving them the right to a specific unit. Because both types of buildings house multiple units, specific financial requirements, documentation, and regulations must be followed, from the application process through the funding of the unit, and, of course, once the purchaser has moved in.
That is why real estate agents are usually required in this market, as they have the experience and knowledge of the process, and the specific requirements of the building and its board of directors (which has the power to accept or reject a buyer, so long as the criteria do not run afoul of any civil rights or protected-class statutes). Not surprisingly, the New York Department of State lists 16,852 active real estate salespersons in Manhattan alone, with an additional 6,659 in Brooklyn, 2,006 in Staten Island, 1,451 in the Bronx, and 6,308 in Queens.
With so much competition, real estate agents have needed to get creative to provide an excellent experience, as unhappy or unsatisfied customers can easily switch agents. While happy customers can often generate additional referrals and business, those who are dissatisfied have several tools to share their displeasure, including RateMyAgent.com, Zillow.com, and StreetEasy.com, among many others. They can also file specific complaints with the Department of State, if there are significant concerns regarding unprofessional behavior, suspected discrimination, or a breach in fiduciary duty.
One of the major changes designed to improve the customer’s experience during the rental or purchase process has been the use of video by agents to highlight a specific property. Bolstered by the increased clarity and stability found in smartphone cameras, agents are using video walkthroughs to showcase properties, which helps prospective customers get a better sense as to the condition, space, and layout of a home or apartment, prior to visiting it in person. This results in a significant time savings, as prospective buyers or renters do not need to view properties in person that clearly do not meet their needs or aesthetics.
Due to the COVID-19 social distancing and health concerns of visiting properties in person, the use of FaceTime appointments and video walkthroughs has increased, according to Laura Denise Milkowski, an associate broker with Luxus Manhattan Realty, llc, a Manhattan-based real estate brokerage firm.
“A lot of customers will do a FaceTime appointment with me, because they’re still out at their country house, or outside of the city [due to the pandemic],” Milkowski says. “So, there are more FaceTime appointments and use of video for agent previews,” where the broker or salesperson will visit the listing on his or her own, and then send a video of the property to the prospective customer.
Brokers and agents need to demonstrate a commitment to CX, even when their offices are closed, given that potential purchasers and renters are often searching for listings beyond typical business hours. They need to embrace an omnichannel philosophy, especially as social media channels, such as Facebook, Twitter, and WhatsApp, have become preferred channels through which to view and share property details and cultivate potential purchasers. Providing tools to let customers submit personal information and property preferences via the web, a mobile app, or social media can make the process of onboarding clients simpler and more efficient. Machine learning (ML) algorithms can be used to analyze the search criteria of other similar customers, and combined with a customer’s individual search criteria, can be used to deliver a personalized list of potential properties to consider.
However, the experience of a real estate customer is not just about the use of videos, omnichannel communication platforms, or ML algorithms. Experienced agents have realized that creating a truly excellent CX is all about truly understanding a client’s needs and desires, and then tailoring the homebuying experience to their individual needs. In addition to helping customers navigate the ins and outs of the transaction, good CX is delivered by clearly describing the transaction process, taking the time to explain the requirements of a particular building or development, and remaining available to answer questions as they arise. Good CX also involves anticipating any potential problems, and serving as a liaison between parties to help mitigate and address any procedural, technical, or personality issues that may arise during the transaction.
Milkowski notes that in a sea of competition, agents must demonstrate that they have the specific expertise and experience to handle the complex or challenging aspects of real estate transactions. In addition to creating FAQs or case studies that illustrate the solutions they have provided to customers in previously challenging transactions, agents should be able to sit down with the client and walk them through the entire process in laymen’s terms, discussing potential issues or hurdles, and explain how to mitigate or solve these issues efficiently.
This will help engender a high level of trust, given the magnitude of what is at stake. Real estate transactions, particularly purchase closings, are highly regulated and require an extremely close attention to detail, because a single mistake on a form or document could render the transaction null and void. The potential for mistakes is high, given that each condo or co-op board may have different requirements or procedures to consider. Although some buyers may believe they are capable of handling the transaction themselves, particularly if they have bought and sold property in the past, the additional experience and care of an experienced professional can make the experience far smoother and less stressful. “It’s like saying like, okay, I went to the doctor five times in my life, so I’m going to be my own doctor,” Milkowski says. “And that’s why there’s so many brokers in [New York] city, because the process is very, very difficult.”
Author Information
Keith Kirkpatrick is Research Director, Enterprise Software & Digital Workflows for The Futurum Group. Keith has over 25 years of experience in research, marketing, and consulting-based fields.
He has authored in-depth reports and market forecast studies covering artificial intelligence, biometrics, data analytics, robotics, high performance computing, and quantum computing, with a specific focus on the use of these technologies within large enterprise organizations and SMBs. He has also established strong working relationships with the international technology vendor community and is a frequent speaker at industry conferences and events.
In his career as a financial and technology journalist he has written for national and trade publications, including BusinessWeek, CNBC.com, Investment Dealers’ Digest, The Red Herring, The Communications of the ACM, and Mobile Computing & Communications, among others.
He is a member of the Association of Independent Information Professionals (AIIP).
Keith holds dual Bachelor of Arts degrees in Magazine Journalism and Sociology from Syracuse University.
