"What keeps me awake at night is the thought of four 21 year old University of California, Berkley graduates sitting in a garage in Seattle re-thinking what real estate should look like and then doing something about it"
Alex Perriello, Realogy Franchise Group in response to a question posed to CEO's of the Top 5 Global real estate networks by Steve Murray at recent Real Trends Conference about what keeps them awake at night. May 2010
You know, if you had a crystal ball and could predict the future, somebody would be there to make you rich beyond your wildest dreams. Guaranteed! That's how valuable knowledge is.
And yet, with all our analytical tools, charts and lofty research, we seem to be continually surprised. We're upended by the titanic shifts realigning the world through social media and still reeling from the impact of misguided financial policies that have literally brought the world to it's knees.
This evening, I asked my resident Millennial (back home from college for the summer) what he thought would be important in the real estate industry in the future.
After a little hemming and hawing, he said the following:
"You know, I'm not really worried about the Purchasing Agent, I can do most of that research myself and find the home and area I like online. I'm worried about the Listing Agent."
"Why?", I asked.
"Well, they're the ones who can really mess you up & make you lose real money. They're the ones who you need to make sure really know their stuff and are smart enough to market and sell your house. They're the ones who you hope know what they're doing in your neighborhood. Because if they don't, they can really hurt you!"
Murky Waters...
Today, the murkiest waters in the real estate industry swirl feverishly around two areas which lack any real degree of transparency. These are:
1. An unbiased, accurate assessment of the skill and success level of the real estate agent
2. Proof of what a home is truly worth
Today, most of the evidence about professional success remains anecdotal. This makes folks feel vulnerable. Consumers are hard pressed to find data about who has actually sold properties in any given area and what level of service they provide.
But the opaqueness extends well beyond this barrier. How are consumers to determine how an agent fared in comparison to competitors? For instance, did a quick sale occur because the agent sold a home significantly below the market value of similar area properties? Inquiring minds want to know. Inquiring minds want to make informed decisions.
The Future...
Now, if some Millennial youngsters are thinking about issues like this before they are really serious about purchasing homes, I have this gut level feeling that we're looking at the future. This generation is going to find a way to solve this problem and create a transparent process that makes sense.
Mr. Perriello may be onto something with his observation of the Millennial generation. The future is not as distant as we think. It might be sitting at your dinner table tonight.
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