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.

Evolution of Multi-Listing Services

Although MLS’s 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.

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.

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.

Impact of Immigrants and Minorities

Many immigrants come with little or no knowledge of the inner workings of the American real estate transaction, nor do they understand the vast number of terms used during the process. In many cases, this is compounded by a lack of proficiency in the English language. Yet, they desire to and increasingly do buy homes. This poses multiple opportunities for real estate brokers and agents.

The Growing Knowledge and Skills Vacuum

During the last five years the real estate industry has absorbed an influx of newly licensed agents at a rate and number that has shattered all records. Simultaneously, brokers and agents have been bombarded with new business models, the Internet, bundled services and specialization. The need for true knowledge and fundamental sales skills has never been more prevalent and essential than today.

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.

Rebirth of a New Middleman – Lead Generation

Numerous attempts to reduce the role of the agent in the home selling and home buying transaction will continue. The recent strong growth of the lead generation initiatives are raising concern among some, since they feel the existing commission pie is being pre-sliced. Increasing dependency on these leads may also allow for price increases that will further exacerbate the situation.

Electronic Devices Take Center Stage

We’ve been dazzled with palm pilots, blackberries, bluetooth, m-life, t-mobile and more. Now the time has come to simplify and integrate all these individual devices into fewer, multi-function, more multi-task-enabled devices. REDtablets, iPods, and GPS devices are just some of the items currently making the news and providing a promise of saving time and increasing productivity. For those who love gadgetry, heaven has a name on earth: CompUSA.

Trends on the Fringe

Trends on the Fringe reviews trends that did make the top 15 for the 2006 report. This includes discussions on mortgage fraund, thinking globally and acting locally, generations x and y, data security, and the restructing and rebuilding of Realtor® associations