Education

In the rapidly expanding internet-centric purchasing world, real-estate consumers/buyers often find properties listed online well before their Realtor.  This shift is huge and will drive the real estate industry in the coming years.   As mentioned previously, online platforms like Redfin, Zillow, Trulia and Realtor are exploding.  These sites have given today’s consumer access to more information than ever before.  In order to better align themselves with the changing needs of their customers, Realtors will need to adapt from the current standard commission model to a more transaction paid model.   Realtors are still a very important part of the buying/selling process and are needed to navigate all the logistics of a transaction.  However, their traditional roles have changed over time and the customer should not continue paying for services that are no longer exclusively provided by their Realtor.  One example of this can be seen with Zillow Buying, Showing Desk and Redfin’s platforms that give buyers access into houses without the assistance of a Realtor.  The customer can benefit in this new landscape through cheaper listing fees and a more transactional approach.

The Real Estate landscape is changing quickly but traditional brokerages are clinging to the past in many ways.  The conventional structure of brick and mortar offices, combined with in-house staff, add to overhead and ultimately create unnecessary expenses that are passed along to the consumer.  The established model of magazine and newspaper marketing is neither cost effective or timely.  Traditional brokers will need to adapt in order to stay relevant in the future market.   The Real Estate industry has huge margins and brokerages that have high overhead and lack of creativity will struggle.  Online platforms like Redfin, Zillow, Trulia and Realtor.com are exploding.  These sites have given today’s consumer access to more information than ever before.  This information greatly increases the consumer’s power and diminishes their overall need for traditional real estate brokerage services. It no longer makes sense that a seller would need to spend the 6% real estate commission that is an expected part of the transaction.  The standard ways of operating are no longer in the best interest of the consumer.  Brokerages that can provide excellent service, reduce overhead, create unique buyer/seller experiences, cut commissions and lead with curiosity will survive and thrive in the new future.