A Population on the Move
Although our population has always moved and impacted our industry, Baby Boomers have caused or changed more trends than any other group. As a result of the cost of living and the availability of affordable housing, a significant group of Boomers are likely to move during the next couple of years. This potential geographic relocation places us at the initial stages of a huge population shift, one that could have a national impact, redefining cities across the US, and creating opportunities galore for the smart broker and agent.
Integrating and Managing the Real Estate Transaction
While the 2000 dot.com crash rained destruction on the one-stop-shop-parade, the integration of transaction components, the effective management of the transaction, and the drive toward a more seamless real estate transaction is still very much alive. However, transaction management is different today, as title companies lead the way by laying a solid foundation for an automated real estate transaction.
To Those Who Have, More Will be Given
Size, previously considered by many as more cost-prohibitive than effective, has demonstrated to the world just what sheer volume is capable of overcoming. Economies of scale have changed the financial landscape and dominated industries. For the first time in history the residential real estate brokerage industry has a mega company with the power to really effect change.
The Franchising Revival
Franchising is one of the most popular ways to expand your company. The Internet has also fueled the growing need for a recognizable online brand, providing a competitive advantage and increased market recognition. Globalization is an added bonus for franchising. So whether a real estate agent wishes to expand their brand, or quickly acquire another brand, franchising is currently one of the best opportunities to achieve that end.
The Realignment of Marketing Strategies
The Internet has become the most powerful tool in real estate, both as a research device and as a marketing medium. The web has totally changed the consumer’s focus in selecting a media containing the desired data.The challenge for brokers and agents is to find a dynamic blend of print and Internet advertising in order to create one balanced channel that meets the specific needs of their segmented and fragmented real estate consumer. The potential for those who succeed may be a significant increase in market share.
Evolution of Multi-Listing Services
Although MLSs continue to play an essential role in the US real estate market, migration to the Internet has opened a myriad of complexities. The industry has worked through data ownership, but still struggles to ensure the security of data. The next hurdles include data exchange, territorial issues, and uniformity.
Advancement and Sophistication of Real Estate Agents
Gone are the days when agents were the gatekeepers of a wide range of real estate information. They are now, by default, broad experts in the home buying and selling process. The pace and extent of change in the real estate business has been escalating faster and faster. The challenges facing the agent of today are more complicated and complex than ever before. To succeed in the new world of real estate, agents will have to learn some new skills, be very technology proficient, offer a broader base of services, and learn to adapt quickly.
Changing Consumer Characteristics
There is not one single customer type. Increasingly we are learning that different generations and different groups behave differently and have differing needs based upon a wide range of factors. Specialization, coupled with niche marketing, will provide agents an excellent opportunity to gain a competitive advantage in the future.
Development of the Internet
Technology has significantly influenced the way the real estate marketplace operates. The pace of technological change has been startling. However, the Internet is a very dynamic beast, and although we as an industry have advanced with e-mail and e-commerce, we have more coming down the pike, including ASP, Wi-Fi, broadband, and blogging.
The Proliferation of Business Models
Competition in the residential real estate brokerage industry is immense and intense. Brokers and agents are increasingly assailed by a large
selection of business models, products, commission structures and Internet options. In reflection, one can see that previous business models and trends significantly influenced the industry. For example, the growth of multiple listing systems in the 60’s, the franchising of the 70’s, the 100% concept in the 80’s, and technology in the 90’s. There can be little doubt that something different will again cause a major shift in the industry.