The Biggest Challenges Facing Sales Teams in Residential Real Estate — and How to Overcome Them

The residential real estate market has always been dynamic, but in recent years, the pace of change has accelerated dramatically.  From a global pandemic to a recession and a housing crisis, there seems to have been a long period of instability, which, sadly, may continue for some time.  As real estate lawyer Joanna Bullard advises, ‘Economic fluctuations and global events are likely to continue to impact the real estate market over the next five years.’  She puts this down to ‘Brexit-related uncertainties, and shifts in global economic conditions, not helped by higher interest rates and inflation.’  For homebuilders, this has been a long period of uncertainty, especially for sales teams who are at the frontline of this volatility.

When it comes to challenges faced by sales teams, there are certain issues that cannot be prevented, such as global events and financial instability.  However, there are also significant challenges faced by these core members of the homebuilding sector that can be minimised, if not prevented completely.

In this blog, we explore five of the biggest, yet likely preventable, challenges sales teams are facing in residential real estate, and what can be done to overcome them.

1. Shifting Buyer Expectations

Modern homebuyers are more informed than ever.  They do their research online, expect immediate access to information, and want a frictionless experience from first click to final contract.

Last year, Market Financial Solutions published a report titled ‘The Homebuyer Wishlist 2024’ which outlined the most desired features of those looking to purchase a property.  The most desired feature of a new home for today’s buyers was broadband and mobile connectivity, topping the table at 84%. 

The emphasis on connectivity is both a sign of the prevalence of remote working and a digital-first living experience, as well as a reflection of a desire for immediacy, whether that be information, streaming, or, in fact, buying a new home.

Sales teams in the new homes arena are under pressure to provide quick, comprehensive, and consistent information across multiple channels, so it is important to ensure they have the tools or content they need to deliver this experience for prospective buyers.  Digital home user guides and homeowner portals allow buyers to receive 24/7 access to key documents, warranty information, and support.  This reduces the burden on sales teams and can enhance the overall experience for homebuyers.

2. High Turnover and Burnout

Residential sales can be a high-pressure environment.  Customers are parting with the largest sums of money they have likely ever spent and have an understandable desire to know this purchase is worth that investment.  This can make homebuyers anxious about the process, having many questions and needing regular updates on progress.  These traits can make the process more stressful for sales agents as they try to manage the requests of their buyers while also trying to process the sale smoothly.  Some agents might also be faced with unpredictable commissions and most will face long lead cycles from initial reservation to final completion. 

It’s no surprise that turnover remains a persistent problem for sales teams in homebuilding companies.  In fact, The Negotiator published an article reporting that ‘Three out of 10 estate agents are quitting their jobs’ and that the ‘turnover is being driven by the employees themselves rather than employers.’ 

Burnout of sales teams also leads to inconsistent customer experiences and disrupts continuity, which is especially damaging when buyers are already navigating such a stressful purchase.

To avoid or limit the stress of the sale for both the agent and the purchaser, streamlining the sales-to-aftercare process allows sales professionals to focus on building relationships with their buyer and closing the sales.  Automating the handover process gives buyers peace of mind while reducing follow-up fatigue for teams – and greatly minimises chances for burnout.

3. Lack of Real-Time Communication and Visibility

Many sales teams still rely on emails, spreadsheets, and even paper documents to track progress and update buyers.  This slows down response times and makes it difficult to provide accurate updates – so much so, that research discussed in Estate Agent Today magazine found that, ‘Poor communication among stakeholders was a top five frustration causing delays for estate agents and conveyancers in particular.’  They also revealed that chasing and being chased for information took up to 44% of the working day for real estate sales agents.

Unfortunately, missed follow-ups, delays in documentation and slow communication can all diminish customer satisfaction as well as team productivity.

Instead, ensure homebuyers receive real-time updates on their purchase, and provide sales teams with a single source of information using a residential portal.  This improves transparency, reduces confusion, and enhances trust throughout the process.

4. Managing Post-Sale Engagement

In the homebuilding industry, the sales cycle doesn’t end at completion.  Buyers increasingly expect a continued relationship with their builder, especially during the warranty and aftercare period, and this is also a stipulation of most regulatory and consumer codes for the sector.  Plus, as Ruso Development Inc. points out, ‘Aftercare services play a pivotal role in ensuring the longevity and satisfaction associated with construction projects.’  

However, in many cases, sales teams can find themselves pulled into post-sale support.  As their main point of contact throughout the sale, it’s unsurprising that buyers call upon their sales agents when they need support post-sale.  However, this ongoing contact with buyers can detract from their ability to pursue new leads and complete further home sales. 

A sure remedy for this is to ensure buyers know the correct member of the organisation to contact for aftercare issues.  Using a homeowner portal can empower buyers to manage post-sale issues, book snagging appointments, and access documentation independently, which frees up time for the sales team and improves overall satisfaction.

5. Adapting to Market Volatility

Economic uncertainty and interest rate fluctuations are continuing to impact buyer confidence.  As Estate Networking magazine points out, ‘Interest rates have a direct correlation with demand in the housing market.’  Low interest rates can stimulate activity in the market through affordable mortgage offers, whereas high interest rates increase the price of mortgages, making many unaffordable.  This, in turn, can ultimately bring down house prices.  Sales teams are often forced to adjust pricing strategies, marketing messages, and sales tactics with little warning to cope with this volatility.

When property prices come down or rise suddenly, it can erode trust between buyers and homebuilders and cause buyers to drop out of the pipeline.  It is hard to understand how the same product can be worth more or less than its original price, and when the cost of that product is so high, like a home, the change in percentage is normally in the thousands of pounds.

Leveraging a digital tool to ensure that communication is consistent and up-to-date allows homebuyers to feel in the loop about fluctuating market conditions and pricing.  Whether it’s updating documents, sharing new incentives, or broadcasting announcements, digital tools give teams the flexibility they need to adapt fast and send communications out swiftly.

How to Equip Your Sales Team for the Future

In today’s residential real estate market, fostering a relationship based on open and honest communication, and a buyer-centric service isn’t optional – it’s an essential ingredient for success.  By addressing the five biggest challenges for sales teams head-on and integrating a digital tool like Spaciable into your workflow, homebuilders can empower their sales teams to perform at their best and deliver an exceptional buyer experience.

Want to learn more about how Spaciable can support your sales team?  Visit our website to book a demo today.