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Why Real Estate Agents Prefer to Outsource

 

Rising prices of property in combination with consistently high demand from investors have established profitable conditions for real estate agents. However, increased competition and improved technology have pushed the agent to work harder than ever before to close deals. It is a conundrum that places the agent in a position where he has to find the best option for maximizing productivity without increasing his risk. The best option is to outsource to third parties. Here are 5 reasons why real estate agents prefer to outsource.

 

1. Cost Efficient Way to Get More Tasks Done

 

A career in real estate can be a lucrative profession. One deal can land an agent a windfall of income in commissions. But processing a sale through a funnel takes time. In some cases, the period from initial contact to final sale would take 4 months.

The industry has also become increasingly competitive. More people are entering the field and this raises the stakes even higher. Agents have to be efficient when it comes to managing their resources.

Outsourcing presents a more cost efficient way to get more tasks done for the following reasons:

  • You can find virtual assistants such as those from remote locations that charge less but are equally or if not, more proficient than regular full-time employees.
  • Virtual assistants are self-employed; they are responsible for their own expenses. You don’t incur additional expenses for Internet, power and contingencies.
  • Virtual assistants are not entitled to government mandated benefits or company benefits.
  • With virtual assistants, you only pay for actual hours worked and as contracted talent, you are not obligated to assign then 8 hour shifts.
  • It is estimated that you can save more than 40% on your total cost of operation by simply outsourcing tasks to virtual assistants.

 

2. Immediate Improvement on Level of Productivity

 

The agent’s level of productivity is contingent on effective time management. A typical day could find the agent inundated with a multitude of tasks. But if the agent frequently finds himself taking phone calls, answering e-mails or booking appointments, he will not end up with many productive days.

The real estate agent should delegate administrative and support tasks to the Virtual Assistant. This frees himself from having to take phone calls in the middle of a meeting or getting stuck behind the computer responding to e-mails.

The agent should be on the road meeting with clients in person. The more hours spent showing off properties, negotiating contracts, expanding the network, attending auctions and open houses the greater the probability of landing a sale.

 

3. Boost Their Profits

 

So what is the end result when you implement a strategy that reduces cost and increases productivity? When you improve work efficiency while enhancing productivity, you create conditions for greater profitability.

In business, you have to spend money in order to make money. You cannot do everything yourself. And even if you could, you shouldn’t because you end up wasting valuable time.

Real estate agents know that given the sheer number of tasks they have to do, delegating work is the smartest option. Outsourcing is the best course of action because of its ability to streamline costs without compromising revenue generation.

 

4. Improve the Quality of Work

 

Marketing is one of the most crucial aspects of the real estate profession. This is how the agent promotes his services, generates leads and builds his network. But for marketing to be effective, it has to be approached with strategy and purpose.

There are many marketing tools and techniques that you can use to promote your business but not every one of them will yield success. For example, if you want to use content marketing as your primary strategy, you just can’t post and distribute blogs and articles without giving much thought on what it should be about.

If you want your content to generate traction, it should have the following qualities:

 

  • Unique
  • Engaging
  • Relevant
  • Usable
  • Keyword- rich

 

Without these qualities, it will be difficult for readers to patronize much less find your content. The truth is, crafting great content takes time. And as discussed earlier, the agent’s time is best allocated to handling tasks that contribute directly to his bottom-line.

By outsourcing content writing to a Virtual Assistant, you can be assured of high quality blogs and articles. You can easily find virtual assistants with the experience and ability to write great content. Most importantly, they will have the time to focus on writing consistently amazing content.

 

5. Less Stressful Approach to Managing Their Business

 

The biggest advantage of hiring regular full-time employees is the availability of shared space collaboration. It is easier to manage an employee that shares the same space as you. Close collaboration makes it convenient to monitor work and track performance.

But shared space collaboration is a double- edged sword. It can also be one of the biggest disadvantages of hiring a full- time employee.

For one, the agent has to adjust to another person’s personality and work attitude. Often times a clash in personalities can lead to conflicts and create a stressful work environment.

Second, should lean periods persist the agent may ultimately come to a decision to streamline costs. In cost cutting, the first asset that gets cut is manpower.

Terminating full- time assistants can be a complicated and expensive process. The agent has to observe labor laws, the provisions of the contract and of course, pay out separation benefits.

By outsourcing work to virtual assistants, the agent frees himself up from these types of situations.

Sure conflicts can still arise when working with virtual assistants. But these can be resolved through the availability of software programs that allow virtual face- to- face meetings.

The low touch approach reduces the risk of clashes or work frustrations boiling over. The agent will only reach out to the VA whenever he needs assistance.

It is also easier to terminate an outsourcing contract which is generally a Client to Service Provider agreement. Usually there are provisions in the contract that allow for pre- termination. These include:

 

  • When the arrangement will only serve to contribute to further losses for either party.
  • When the position creates a redundancy.
  • When there is a breach in any provision in the contract.
  • When a problem has not been remedied within the prescription period.

 

In these cases, the other party will be given 30 to 90 days prior notice before termination of the agreement takes effect.

Outsourcing is a business development strategy that has been proven effective in various industries including real estate. It is a great representative of the Lean approach to management and offers the agent a process that reduces cost while improving the ability to generate more income. Real estate agents prefer to outsource because it brings them closer to achieving profitability.

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