In the 1990s only about 20 percent of the top 10 major residential real estate brokerage brands were owned by public entities, by 2012 that number had exploded to 80.In this report T3 Sixty takes a deep dive into the consolidation of the brokerage industry and specifically the acquisitions of Berkshire Hathaway.
Two decades ago, the real estate industry waited with bated breath as terms like disintermediation and new business models were thrown around, and many thought brokerage companies and agents were going to disappear entirely as a result of changing technology, the Internet, and the collapse of commissions. While its been far from the doom and gloom anticipated, the industry is changing rapidly, and recently there have been increased calls to again look at reengineering the real estate brokerage model.
In the rapidly growing digital age, how consumers receive information is everchanging. Real estate agents and brokers need to move away from oldfashioned ways of marketing their businesses and listings and learn to use and embrace the tools of technology.
Franchising has shaped the industry like few other concepts or strategies. Its impact ranks with the MLS and the Internet as one of the top three gamechanging strategies in real estate since World War II. This 2010 report is an indepth review of the franchising model in real estate.
New models are shifting the traditional residential real estate brokerage model.