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One of the things I have heard as I have traveled across the country and spoken to tens of thousands of REALTORS® over the last 36 months is the following belief: Buying and selling a home is an infrequent, emotional event in one’s life. Because of the emotional aspects of this event, a real estate professional will always be needed, to help fulfill the emotional need and support of buyers and sellers. The conclusion is then, because of the above, I can never be replaced in a real estate sales transaction. This complacency could prove to be your downfall as a real estate professional. If you plan to succeed in the real estate industry in the future, you must begin to examine the possible answers to the following questions: It is true that the purchase and transfer of a home is an emotional event that has many tasks and needs that must be fulfilled by "someone"; but must that "someone" be a real estate professional as we now know them today, working as an independent contractor for a brokerage firm? Is the current sales transaction model cost effective for consumers, the buyers and sellers of real property? If not, what will the future real estate sales transaction model look like? How will costs be cut? How will it become more cost effective? Is it possible that the emotional needs of buyers and sellers may be satisfied by "someone" that works for a title company, escrow company, or lender; someone referred to perhaps as the "transaction coordinator". Can marketing be done cost effectively on the internet? Can showings be arranged by "showing companies", companies with bonded employees who are present when a potential buyer wants to view a property (and hold open houses)? Because loans are the part of most transactions, what if lenders formed an "association" and built a data sharing arrangement with each other that had the effect of providing what an MLS provides, exposure of properties offered for sale? In the age of information and technology, is it possible or even probable that the future needs of buyers and sellers involved in the purchase and sale of a home may be fulfilled by a new type of "professional" under a new real estate sales and transaction model? A real estate sale transaction model that is more cost effective than the current model, a model where the average costs of sale are between 5% and 7 ½ %. Is there more than one successful model? What are some of the potential models or job descriptions of real estate professionals and what is the potential amount of compensation and method of compensation that will become common place? What method will consumers prefer and demand? What is the role of the New Real Estate Professional? Who are they? How will they be paid? How much will they be paid? If you are currently earning a living as a real estate professional, broker or salesperson, you must begin to consider the answers to the above questions. If you are an association executive, the answers to the above questions will help you prepare to service your future member, and possibly insure your continued existence. If you are an MLS executive officer, MLS vendor, provider of technology or educator of real estate professionals, you are equally concerned with the answers to these questions, for they will shape your future in this industry as well. |
