Have you ever heard of the “last mile problem”? I first came across this idea while listening to Mike DelPrete and it got me thinking about the concept. It might sound like something from a race, but it’s a challenge that exists in many industries, real estate included.
What is the “last mile problem”?
The “last mile problem” refers to the final step of delivering a service or product to a customer. For example, think about ordering something online. It’s easy for the company to get your package to the city, but getting it right to your front door is the tricky part. This last step is where things often go wrong, with delays, miscommunication or mistakes.
The last mile in real estate.
In real estate, the “last mile” is all about the final steps of buying or selling a home. Everything might seem smooth at first, but it’s in these last few stages – like closing the deal, completing paperwork, or securing financing – where things can get complicated. These final hurdles can slow things down or even cause the entire sale to fall through.
Even though real estate has gone digital with online listings, virtual tours and marketing, the last mile of the process is still a challenge. Buyers and sellers often find themselves dealing with paperwork, negotiations and inspections that can be stressful and time-consuming.
In a world where consumers have access to more information than ever, real estate professionals need to focus on providing the human touch and expertise that technology alone can’t deliver to help take homeseekers across the finish line.
Why it matters.
Here are three big reasons why the last mile matters in real estate:
- Efficiency and timeliness: In real estate, every second counts. Delays during the last mile can frustrate buyers and sellers, especially in fast-moving markets. When deals take too long to close, it can lead to missed opportunities. Set your prospective buyers upon automated searches, including price adjustments and status changes, so they see new properties as soon as you do.
- Cost implications: Unexpected problems in the final steps, like delayed inspections or issues with financing, can lead to extra costs. Both buyers and sellers might end up paying fees they didn’t expect, adding to the stress of the transaction. For instance, booking home inspections before the subject removal date helps buyers feel more at ease. This way, they won’t feel rushed to make decisions based on the inspection or scramble to find a contractor for a last-minute foundation or structural check. Likewise, keep the title transfer day separate from your client’s possession day to avoid additional storage costs or interest if any financing issues arise.
- Customer experience: Even if everything else goes smoothly, a messy last mile can leave a bad impression. To avoid a bad testimonial created by the recency effect, make sure that last impression is a good one. Ensure there are no loose ends in paperwork or unanswered questions and stay in contact after the transaction closes. Buyers and sellers want a stress-free experience and real estate professionals need to make sure the final steps go well to ensure satisfied clients.onals need to make sure the final steps go well to ensure satisfied clients.
How real estate professionals can solve the last mile.
Mike DelPrete nailed it when he said that realtors are actually the “last mile solution.” Agents play a crucial role in helping clients through the final stages of a sale. As Trevor Koot explains, “The first connection is just the start. No matter if the connection is from a lead, a referral or just a random conversation at the grocery store, it is just the beginning. How you foster that relationship is key. How you connect with that new contact will determine the success of making them one of the 85%.”
Here’s how real estate professionals can make the last mile smoother:
- Technology integration: Tools like digital document signing, online contract management and real-time communication can make the final steps easier. Using built-in apps for webforms like Docusign or Authentisign allow you to send your clients a copy of filled-out documents once they’ve been completed so you don’t have to send it later.
- Better coordination: Real estate transactions involve many different people: lawyers, inspectors, mortgage brokers and more. Coordinating between all these parties helps keep things moving. Get the right parties involved by making early introductions and loop all the necessary people in on relevant transaction information and updates.
- Enhanced communication: Clear and constant communication between agents, buyers and sellers can help avoid surprises and reduce delays. Ensure you’re communicating right away with updates on negotiations. Don’t put off relaying vital information to your clients so they can make timely decisions.
- Client education: Educating clients about what to expect in the final steps can reduce stress. When buyers and sellers know what’s coming, they’re less likely to get frustrated. Have a buyer’s or seller’s guide and review it during the process of their transaction. Every time there’s a new step taken, review it with your clients and refer back to the documentation so they feel communicated with.
Looking ahead.
As the real estate industry continues to evolve, platforms like REW.ca are focused on solving the “last mile problem.” With new technology and better tools, we’re working toward a future where the final stages of a real estate transaction are less stressful, faster and more efficient for everyone.
“The last mile is important – but so is the first – and every mile in between, for that matter. I’m not sure which mile it is between meeting a prospective client and them feeling like they can trust you, but that mile is one that you should be paying attention to. If you work to understand who they are, demonstrate your value, keep in touch with them and truly care about their journey, you will turn a contact into a client every single time,” says Koot.
In a world where consumers have access to more information than ever, real estate professionals need to focus on providing the human touch and expertise that technology alone can’t deliver to help take homeseekers across the finish line.
