Have a seat and buckle in. The real estate industry is already in a whirlwind — and the year has barely kicked off. To put it simply, the industry appears to be in its “rapid evolution” era. What does this look like? Firstly, real estate professionals are facing an unyielding storm of new challenges. For example, changing agent commission guidelines and emerging lead contact regulations are keeping professionals up at night.
Let’s dig into the leads a bit. An industry-wide focus on lead generation has left many professionals with vast, often un-tapped lead databases. Beyond that, technology continues to evolve, yet those solutions do little to streamline processes and deliver actual returns. Together, these obstacles are forcing agents and brokerages to hit the sidelines and plan against seemingly insurmountable odds — like facing Brady and the Patriots in the Superbowl.
One thing is clear: This year will demand a shift in how real estate professionals approach their goals. The industry needs to go old school and focus on relationship-driven models. Professionals should also leverage technology to give clients the best experience for the biggest decision of their lives.
Isn’t that promising? If so, here’s how to return back to our roots and navigate an ever changing market.
Embrace changing commission dynamics
Court cases have a unique way of complicating things that should ideally be simple.
Based on a historical commission lawsuit enacted in 2019, the real estate commission landscape is undergoing significant change, reshaping how agents engage with their clients. But first things first, if professionals haven’t adapted to the commission lawsuit, now might be a good time, no?
Additionally, with cooperative compensation removed from MLS systems, alongside the new requirement for buyer-agency agreements, agents must speak up and share their value clearly and confidently. Before that can happen, professionals must educate consumers about their role, as many clients underestimate the effort involved in buying or selling a home.
The fact is, real estate agents do more than just sign the dotted lines for their clients.
Studies show agents spend 87 hours on average during a purchase deal, navigating more than 200 outcomes to drive a transaction toward success. Sharing these insights helps clients appreciate a professional’s value. And, that level of transparency rebuilds valuable trust in the agent-client relationship. Leverage tools like personalized buyer presentations to demonstrate expertise, negotiation skills, and convince clients that a professional doesn’t just bring the table — they are the table. This is an opportunity to articulate value and stand out. Don’t waste it.
Reimagine lead generation and engagement
Instead of looking for short-term results only, play the long game.
Each lead must be treated as an opportunity to build a relationship—not just a transaction waiting to happen. Create hyper-local strategies that focus on building connections in communities or “farm areas” through events, personalized outreach, and targeted farming strategies. For example, focus on value-driven events like sponsored educational workshops, or create opportunities to meet prospects and gain their permission to stay in touch.
Engaging with clients and following those interactions is critical. Move beyond those “set it and forget it” alerts. Instead, look to provide curated options and personalized recommendations to keep leads engaged. Showing active involvement fosters trust and loyalty — which is necessary for building those long-term relationships.
Manage massive lead databases with precision
Quality over quantity is a forgotten mindset in the modern real estate world.
After an industry-wide focus on lead generation, agents are overwhelmed by databases with loads of leads – totaling 5,000, 10,000, or even 50,000 leads at a time. Instead of relaxing and waiting for someone to become “buyer ready,” real estate professionals must look to effectively nurture these leads *before* They are ready to engage.
The key is to offer value—whether through listing alerts, personalized market reports, or consistent follow-ups. But to execute at scale will require support from cutting-edge technology applications. This is a perfect example of where AI can help, as these innovations can identify promising leads, personalize communication, and automate routine tasks, making sure no stone is left unturned.
To do so, develop strategies and programs that cater to buyers and sellers at every stage. For buyers, focus on delivering second-to-none service and support. For homeowners, stay top-of-mind by providing ongoing value—like market insights or renovation advice—so they return when it’s time to sell. Overall, creating value across the client lifecycle is the best way to shift the focus from transitions to relationships.
Deliver better client experiences with a better technology underpinning
Technology may be scary, but running toward it may be the best option for success.
To stay neck and neck with the competition, agents must adopt integrated systems that simplify operations and improve the client journey. Make no mistake: End-to-end solutions are important, since no one has the time or bandwidth to toggle between applications a million times. Consider platforms that centralize operations from lead generation to closing. This ensures easy communication, boosts the client experience, and maintains lead ownership and privacy. It’s a win-win for real estate professionals and clients alike.
This is incredibly important as regulations like the infamous Telephone Consumer Protection Act (TCPA) will go into effect in 2025. As a permission-based contacting requirement, TCPA requires explicit, written consent to contact leads via calls or texts. Real estate professionals should ensure their CRMs track this permission to support efforts to align with legal compliance standards.
Real estate professionals should represent themselves as trusted advisors
The days of passive lead management and transactional approaches are over — and that’s a good thing. Agents must embrace their role as advisors, guiding clients through every step of their real estate journey. This also includes the ability to deliver continuous value over time. By staying connected with clients post-transaction, real estate professionals can provide insights on refinancing, renovations, or market trends to reinforce their roles as their go-to resources. Remind teams to invest in relationships, not just deals. By treating every lead as a long-term asset instead of a quick win, professionals can build trust. With that, clients will surely return for future transactions.
The real estate industry is entering an exciting, albeit challenging, phase. And as it does, we must all adapt. Evaluate tech stacks, refine processes, and focus on providing unparalleled service. By prioritizing relationships, adapting to regulatory changes and leveraging technology, our industry will be poised for greatness in 2025. And for real estate professionals, it’s only a matter of keeping up and staying valuable. It may not be easy, but nothing worthwhile is.
Stuart Sim is the Head of Industry Development & Brand Ambassador for Lofty.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: zeb@hwmedia.com.
