My favorite time of the year to get my geek on, the "Swanepoel TRENDS Report 2014" is out! In this Real Estate trade magazine they interview the top minds in the industry and ask them a series of questions to help us get a peek into what they anticipate will be our coming attractions. You will likely get a few blogs from me with my thoughts on different parts of this year's book
For today, we will explore this question and the answers:
"Which three specific innovations/changes will, in your opinion, impact the residential real estate brokerage business the most over the next three to five years?"
Gary Keller, Co-Founder of Keller Williams wrote;
"Since looking backwards is a great way to forecast forward, I see three events already underway that I believe will strongly impact the real estate industry for the next three to five years: agents expanding their borders, the expanded use of predictive analytics, and the progressing battle for online listing data."
He went on to say how he believes that the greatest innovation we will see will not come from technologists, but from real estate agents. He believes Top agents will continue to monetize their systems by expanding into new markets. That agents will move their value proposition from "information provider to information interpreter. His third trend is the ongoing battle over who will provide the public with their listing data. This will not go away until the war is won. The outcome isn't decided at all, and brokerages are beginning to realize that if they don't step up and become the solution they will at some point become expendable.
Brad Inman, Founder and Publisher of INMAN news;
"1. New and better products will be created. They sky is the limit on innovation.
2. Smaller tech companies will be gobbled up, as REALTOR.com, Trulia and Zillow square off in heated battle.
3. Brokers who don't innovate or partner will be left in the dust. Old ways are most threatened at times like this.
4. Agents will be offered more and more products and better ways to do their job. Their growing independence will be even more emboldened.
5. New business models will be tried, further challenging the old guard.
Finally and most importantly, the consumer will enjoy a better experience, buying, selling and renting homes."
Curt Beardsley, VP Product Marketing Move, Inc.:
"Today, several complete - or nearly complete - data compilations of nationwide listing data exist. Over the next few years, brokerages, software systems, and agent tools will begin to directly interact with these standardized compilations through APIs and direct interfaces - and not the underlying content providers (MLSs). This single access point for regional and national listing content will render the number or structure of these content providers irrelevant to the users. many of these content provider systems will remain, but some brokerages will begin to directly interact with the aggregated compilations, relying on peer-to-peer and other alternative agreements for cooperation and compensation."
Pam O'Connor, President and CEO of Leading Real Estate Companies of the World:
"Globalization;
The world is shrinking, and as various economies ebb and flow, we have seen investment from foreign buyers increase to represent seven percent of all U.S. sales, and as much as thirty percent in states life Florida and California. Even in interior markets like Iowa's Quad Cities, multi-national companies are bringing in expats, so today's consumer wants to know that his or her home is exposed Globally. Depending on how the U.S. economy grows or stagnates, residents here may also look to other countries to invest. Creating connections to other real estate professionals around the world, and developing platforms to achieve property exposure globally will become more prevalent as time goes on. This trend is already very much a factor in the luxury market."
(Being with RE/MAX, I loved reading her comments on how critical it was for a global reach, no one is as connected globally as is RE/MAX today.)
Jack Miller, CEO T3 Experts:
"Millennials don't care how you're used to doing business. Millennials have grown up with technology that works remarkably well, and the won't suffer the industry's retro technologies - and retro mentalities - either as consumers or practitioners."
The overall tenor of the group was a feeling of optimism and a belief that the industry would continue to evolve into something relevant for tomorrow's consumer. Yet, they believe that those who are not part of the change, are not pushing the envelope will soon not have to worry about it any longer because they will no longer be in the business, be they agents or brokerages.
I guess to put it in an old way of saying, it is up to you to Lead, Follow, or get out of the way.
