As technology grows in the housing industry, so does the need for real estate agents, with the two working in conjunction with each other rather than against each other, Chris Heller, CEO of Keller Williams, explained in an interview with HousingWire over the company’s earnings.
The real estate franchise, which boasts that it is “the world’s largest,” posted in its second-quarter earnings that its net agent count increased by 6,073 during the quarter, up 9.2% over Q2 2015.
“Even with more technology and a stronger market, we are seeing fewer people doing it on their own,” Heller said. “Buyers and sellers still need advice and interpretation of the data that is available to them, and they still need that expert guiding them through the transaction.”
Due to the emergence of technology, the role of a real estate agent changed but definitely is not gone away. The National Association of Realtors noted in a survey last year that even though the Internet is a top source of where Millennials found their home, they still used an agent to purchase their home.
And for those potential buyers unsure of whether they would use a real estate agent or not, Heller said his advice to the industry, regardless of whether it’s his sister or a stranger would be, “find a great agent to help you. A great agent will save you more time and energy than they could possibly cost you.”
The boost in agents translated in a strong earnings season for the company, with agent transactions and volume both increasing. The company reported that agents closed 277,594 transactions in Q2, up 16.1% over Q2 2015 and closed $78.5 billion in sales volume, up 19.6% from previous Q2.
Keller Williams also said its franchisee owner profit was up 13.9% over Q2 2015 to $61.8 million in the second quarter, and its profit share increased 17.7% over Q2 2015 to $53.9 million.
“With new inventory coming online and continued strong demand, our agents are well positioned to achieve record sales in Q3,” said Chris Heller, CEO, Keller Williams. “And with all the new agent production tools and innovation we’re introducing, we truly believe we’re just getting started.”
Heller added that he predicts the third quarter will be as good, if not better, than the second quarter.