A couple of years ago, I received a call from a realtor, a friend of mine, asking for mortgage advice on a project of theirs. They had recently taken on a difficult listing but were confident they could make the sale by providing potential mortgage solutions to potential buyers.

As a mortgage broker, I was able to compare some unique solutions from different lender contacts of mine. I assisted my friend in the process, and they not only sold the property quickly, but we worked together on other projects from time to time. The success of that collaboration has made me reflect on the power of networking across businesses in the real estate industry. 

As real estate professionals, our network is one of our most valuable assets. Whether you’re a realtor, agent, broker, private lender, investor or even a contractor, working collaboratively with other real estate professionals is incredibly important, and this significance is going to continue to grow through 2024. 

The benefits of networking across businesses

Building strong connections with clients is the most important factor in building a successful real estate business, a report by Baylor University shows. It’s a competitive industry — if you can’t provide substantial service to clients, they will simply go to other professionals. I would argue that building relationships with other real estate professionals is the second most valuable tool for being successful in this industry. 

Expanding knowledge

As you grow your business and individual network, your knowledge base is naturally expanded. If you’re a real estate professional who has only ever worked in commercial real estate, making connections with people who have experience in residential real estate can help you grow your knowledge in a very natural way. This newfound knowledge helps with business expansion, service offerings and even just making general recommendations to clients. 

Generating leads

Referrals are the lifeblood of small businesses. Everyone working in real estate in any capacity knows the challenges that come with lead generation. Networking can help increase your qualified leads immensely.

For example, the contact I mentioned earlier now sends me client referrals for those looking for mortgage solutions along their real estate journey. Or, if you are working as a contractor who does housing assessments, networking with real estate agents can help significantly increase the amount of trusted referrals you get. Putting yourself out there and expanding your cross-business reach is huge for lead generation and acquiring referrals. 

Off-market opportunities

One thing I’ve learned through years of working in real estate is that many investment opportunities are not actively marketed on things like public listing services. Yet, these properties can be great opportunities for real estate investors, agents, brokers and other professionals to connect with through networking.

Many different avenues fall under the real estate umbrella that can be explored by connecting with those who have paved the way. Opportunities such as private lending and commercial real estate investing are lesser-known real estate options that you can present to clients, with the right network at your disposal. 

Collaboration

When you begin your career as a real estate professional, you quickly realize the value of collaborating with other experts. As it is an incredibly competitive industry, getting advice from those who have had success before can help you grow as a professional.

Collaborating with other professionals is also a very effective way to create better service for clients — most homebuyers don’t like the idea of having to search high and low for the many different lawyers, brokers, agents, realtors, contractors and other professionals they need to be working with. So, if you, as the professional, offer collaborative services, you’re going to be providing them with a much more efficient and cohesive option.

The growing importance of networking in 2024

Standing out in an increasingly competitive industry

Over the past three years, there’s been a 60 per cent increase in the number of individuals seeking their real estate license, the New York Times reports, while “how to become a real estate agent” has been Google’s #1 job-related search in 2023, according to Fast Company.

These real estate agent queries reflect the dramatic growth that is currently being experienced across the industry. As demand increases, so does the number of registered professionals in real estate. Therefore, real estate as a career is becoming increasingly more competitive, a trend that is set to continue into 2024 and beyond. Networking is a key to standing out amid the growing waves of competition. Retaining key contacts across businesses, from brokerages to construction professionals, can help you serve clients better and, in general, get more business. 

Staying current on technology

Another trend that is sure to be on the rise through 2024 is the use of technology in real estate. Already, we’re seeing the integration of tools that use AI, VR tech and mobile applications throughout the real estate process. Businesses that fail to adapt to this era of digital transformation are beginning to get left behind, as there is such a high degree of client demand in this area. However, networking is a way businesses can stay connected with current technological changes.

For example, if you’re a real estate company business owner, you may not know how to integrate the best technology into your listings. However, industry and marketing professionals are well-versed in this area and can help guide you on ways to adapt your business. Knowledge-sharing is such an incredibly valuable tool that many business owners forget about and is perhaps the biggest reason to prioritize networking through 2024.

Getting started

Attending networking events can be time-consuming and not enjoyable for everyone working in the industry. However, thanks to technology, it’s easier for real estate professionals to connect with others than ever before. Attending virtual events and webinars, adding contacts on LinkedIn or even just scrolling through industry websites and sending emails are all great ways to network and expand your contact base.

As you begin the process of expanding your network beyond just your immediate business contacts, remember the incredible value you are building and how impactful it will continue to be. Networking effectively will help you grow as a professional and as an individual throughout the next year.