Technology innovations are fueling rapid change in the future of real estate residential sales transactions
My first income-producing job was filing Multiple Listing Service sheets one-at-a-time, in a folder, while working with my mom in a small Ohio real estate brokerage. In those days, there was lots of lag time before receiving information on new listings. Over the years, access to listings evolved, with the production of MLS books and then online listings, available only to agents, and controlled by local and state chapters of the National Association of REALTORS®, the legislative body of real estate that advocates for the rights of property owners.
Today, professional associations are still the primary source for real estate-related information, but over the years, technology companies have challenged traditional real estate industry models.
Now, many potential buyers and sellers go to sites like Zillow to view property values and sales statistics in their area. And, lots of consumer-friendly software has been developed that allows access to information once available only to real estate licensees.
Through all of that, the transaction process has remained the same, but the future of real estate is changing the way we communicate and interact with clients.
Real estate brokerage models — another cycle of change is here
Though traditional real estate brokerages still exist, they must adjust to the technological changes and embrace working with agents who work for non-traditional brokerages. These agents may have different approaches to listing and selling real estate.
Innovative companies like eXp Realty have developed cloud-based, virtual real estate models that appeal to tech savvy real estate professionals — many of whom are millennials. Billed as “The Agent-Owned Cloud Brokerage®,” eXp Realty still puts the real estate professional at the center of every transaction, however, the methods of disseminating info and interacting with clients changes. Internet entrepreneur Brad Inman says eXp Realty is one of the most innovative real estate companies in the world. This agent-owned cloud-based brokerage is revolutionizing the way we assist our clients and managing the listing, selling and escrow process.
EXp Realty recognizes the need for real estate professionals, who are independent contractors, to have retirement benefits through profit-sharing and stock ownership. With the eXp Realty business model, real estate professionals who are willing to embrace the learning curve have an opportunity to build a business with retirement benefits.
Traditionally-trained (a.k.a. “Old School”) real estate pros must embrace the fact that transacting business through cloud-based offices is the near future of real estate. Millennial licensees — who live and breathe social media, online services and are often technology whizzes — are finding the cloud-based business model exciting!
Keller Williams is another realty brokerage that offers profit-sharing, and ways to build a real estate business in a non-traditional fashion. KW has open-door policy on agent training, for new licensees, and for seasoned agents needing to brush up on their technical skills and industry trends. KW’s transparency, and willingness to educate and offer tools for success, makes them one of the top real estate training organizations in the world.
Time to reinvent and re-educate
All markets have a cycle, real estate included; I have experienced many real estate market cycles. With each downturn or surge came greater public awareness, greater access to data, new technology, new laws, and new brokerage models.
Right now is an exciting time, if you embrace the philosophy behind the Infinite Success Alliance Market Cycle, espoused by Rick Glade, which says “…in any market cycle there are Innovators, Early Adopters, Early Majority, Late Majority and Laggards. All products and services have a life cycle. The time to reinvent or sell-out is during the euphoric state of market share.”
Buyers, sellers, and real estate professionals, should utilize all the technological resources and tools available, and become educated on market trends.
Change is inevitable in the future of real estate… embrace it
To arrange a personalized session to explore the changes we face and how you can adapt, please contact me!
Comment below, and offer your experience with change and how you’ve adapted.