Recent developments in the business have sparked a lively discussion among major players.
Rocket Mortgage’s announcement that it will be purchasing RedFin has brokerages and agents buzzing. James Dwiggins, C0-CEO of Nexthome, certainly sees this as a tipping point, citing Rocket’s potential to reduce transaction fees and reset consumer expectations, a direct challenge to traditional commission models. According to Dwiggins, “Nothing will be the same in 24 months.”
Meanwhile, Mark McLaughlin of McLaughlin Ventures offers another perspective, noting that while Rocket and RedFin might create a formidable consumer-facing portal, turning online traffic into actual clients is not guaranteed—especially when trust is essential in high-stakes decisions like the purchase or sale of a home.
Both parties dwell on one essential fact: technology is transforming the manner in which consumers engage with real estate, yet the human factor—people, trust, and personalized service—is equally potent.
So, where does this put you in the real estate world of practitioners? How can you strategically position yourself, no matter how these shifts in the industry will unfold?
Let’s explore how you can utilize the ease provided by technology combined with your own sound knowledge to thrive in the dynamic market.
Things that you can do today to stay on top!
1. Understand Your Audience Thoroughly
Understand your target market intimately. According to McLaughlin, Compass excels by specifically targeting sellers and buyers who appreciate personalized service, customization, and a high-trust relationship.
Action: Clearly declare the audience you are serving and illustrate how your service more effectively serves their needs than any technology-oriented competitor.
2. Intensify the Commitment to Trust and Relationships
Technology platforms like Rocket/RedFin are great for convenience, but consumers continue to return to trusted professionals for high-stakes decisions.
Cultivate your existing relationships and consistently provide value through one-on-one outreach, follow-up, and authentic, human connection.
3. Differentiate Your Service Clearly
Your value proposition cannot simply be convenience or low cost; it needs to be differentiated, tangible, and essential.
Emphasize your differentiated services (for example, focused marketing efforts, negotiation skills, special incentives like Compass One), and talk about them frequently and briefly.
4. Utilize technology, but Don’t Depend on It Alone
Employ technology as a supplementary tool rather than relying entirely on it for your pitch. Illustrate how you seamlessly integrate technology with personal relationships to craft an unparalleled experience.
Emphasize your proprietary programs or special processes to illustrate your value.
5. Hone Your Referral and Conversion Skills
Rocket’s lower conversion percentages indicate a tremendous potential to outshine them, if one perfects the art of lead conversion methods. Refine your follow-up tactics, and become proficient in conversion art by creating improved communication and responding promptly.
6. Adopt “Healthy Tension
Acknowledge that this kind of market disruption creates opportunities to differentiate yourself unequivocally. Use Rocket/RedFin’s market entry as a stimulus to innovate and crystallize your service offerings.
Moving Forward—Immediate Action Steps:
Revisit your current value proposition: Is it clear, compelling, and uniquely yours?
Commit to being a trusted advisor, going beyond the part of just bringing transactions. Actively contact your current and past clients, re-establishing yourself as the reliable, customized alternative to the faceless websites. (Pick up the phone and call them!)
As Dwiggins put it in the LinkedIn post linked above, “Consumers will pay a premium for service and convenience, but not if you can’t show them why.”
Strategically invest in your business by establishing a clear niche and the value of one-to-one service.
And lastly, if you’d like to re-craft your value proposition to differentiate powerfully and compellingly, I invite you to attend my workshop. Titled “Why Should I Work With You”. For the investment of just $999, you’ll receive a step-by-step template customized to convey your unique value so that your business becomes strong and future-proofed. (Check out some testimonials from previous attendees of this workshop, along with some others: https://directory.testimonialtree.com/profiles/jerry-kidd-447303)
Remember: Technology changes, but trust remains. Your future is yours—let’s create it today!
Editor’s Note: In preparation for this article, I reached out to both James Dwiggins and Mark Mclaughlin in order to verify the quotes I used. As of 3 PM, March 16, I haven’t heard from Mark, but James offered the following information, which I am quoting here:
“Rocket is not a bank. It’s a non-bank lender and therefore is not garnered by Bank Holding Company Act (BHCA). Also, acquiring Redfin’s employee based agents allows them to legally bundle services without violating RESPA. These are two distinct advantages they have over everyone else. Rocket has also laid out their goal of bundling and reducing transaction costs by 50% and have the capital and resources to really make a strong go at this.”
