In the world of small business, numbers tell the clearest story when it comes to managing your risk. For real estate agents, mortgage brokers, and property managers, sometimes the numbers aren't in your favor. With so much at stake, it's important to see what the numbers actually say about your risks. Check out the research we've compiled on this page to learn more about real estate professionals' biggest risks, what you can do to limit them, and strategies for connecting with new clients.
Personal Protection: Real Estate E&O Insurance
A study by the National Association of Realtors reveals that only 22 percent of real estate companies pay for their agents' E&O Insurance. What do the rest do? If you're an independent agent or contractor, you're probably among the 38 percent who need to purchase their own coverage. The numbers reveal that almost twice as many realtors need buy their own coverage as have it provided for them. Make sure you know your risks, and don't assume that your parent company or franchise is covering your liability.
Reaching Home Buyers through Online Optimization
A report from Placester shows that 92 percent of people use the Internet in their home search. While that shouldn't be surprising, it's important to understand how buyers are searching for homes and agents. Sixty-nine percent use local search terms and 59 percent browse with their mobile and tablet devices on the weekend. What does that mean for real estate agents?
You need to optimize your web presence for your buyers. NAR research shows that agents who spend more on their website, get more from it. Agents who spend $1,000 or more on their website generate 12 percent of their sales from it while those who spend less than $100 only get three percent of their sales from online. By optimizing your site for your local market, having a mobile friendly site, and advertising online, you can connect with the buyers who start their search online.
The Modern Realtor: Guarding against Cyber Risks
Don't underestimate your cyber risks — i.e., data breaches, hacks, and attacks on your client data. Businesses that work in fields related to finance are often attacked because they have customer data that could be used to commit fraud. In fact, Colorado real estate professionals were scammed when cyber criminals hacked into their email accounts in an attempt to trick buyers into wiring money into the hackers' accounts. With customer data, email, and records on your network, make sure you're prepared for cyber risks. Even something as simple as an online appointment scheduler (which 21 percent of realtors have on their website) can be hacked to give up contact information for your clients.