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A Slap Upside the Head...How Gen Y's Are Changing What it Means to Buy & Sell Real Estate!

By
Real Estate Broker/Owner with Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate

 

Gen YSometimes you need a smack "upside" the head to jolt you into reality.  Well, it was two smacks for me today to be precise. Delivered via virtual space long hand in a couple of blog posts.  Mark Eibner, the Real Estate Zealot, writes a blog post  entitled "Are You Gearing Up for Gen Y Business?" in which he links to a recent  CNN article about the 17 year old kid who unlocked the I Phone's tether to AT & T; making it possible to use the phone with other carriers.  This was big news on August 24, 2007.   Although I did hear about it on the national media, I didn't fully grasp the implications of what had happened. 

Reading the CNN article clarified things for me.  The code that tethered the iPhone to the At & T network was one of the most closely guarded secrets on the face of the earth. The system was programed to be be unbreachable by some of the most brilliant computer experts on the planet.  It also represented potentially billions of dollars of proprietary business; blocking out other would be competitors. 

The fact that the code and process could be unravelled so quickly was astounding...but by a 17 year old kid!  After accomplishing this monumental feat, the kid posted all his "how to instructions" on-line for other would be hackers;  apologizing that it was such a cumbersome process. He also gave "assistance credits" to two individuals from Russia whom he didn't know apart from their on-line monikers.  Thus heralding, a new concept in collaboration...networking to create solutions across the globe by collaborating anonymously with others on-line towards the accomplishment of a shared goal. Talk about kicking the concept of Free Shareware up another gigantic notch. 

This is how Gen Y thinksAnd this is why they won't do real estate the way their parents did.  They have this insatiable desire to share...everything.  On-line music, blogs, games, movies, shopping....The fact that we can obtain real estate information anywhere for Free is baseline for them.  That's par for the course. 

They also have a radically distinct view of "ownership."  The kid (of iPhone hacker fame) felt that his solution to the "problem" faced by many who were held "prisoners" to a proprietary system was ultimately the property of the world.  This is the generation which created major headaches for the recording industry with pirated music from Napstar and thought it was cool to allow everyone to listen to music for Free. Will this approach to ownership and proprietary information make the current process of broker aided real estate transactions seem archaic if not downright draconian?

Perhaps we are about to witness a radical transformation of the meaning of the word transaction...how it's executed, how it's paid for and what it is.  The Real Estate Transaction of the near future will embody elements that cannot be imagined today. It is certain that there will be a re-definition of the meaning and value of professional expertise.  We can also anticipate that the relationship with the "expert" will be much more collaborative and interactive than it is today. Real Estate Blogging represents the primary swing into the first portion of the arched curve around this track. 

This also underscores why *76 Million Gen Y's (1982 - 2000) connecting to the real estate market within the next decade will make the real estate transaction of today feel like viewing the relics of a dinosaur.  I quote from the Mike Eibner, the Real Estate Zealot..."All media is moving to the palm of your hand and this includes real estate."  Are you ready for a revolution that's aims with the precision of a pinpoint to transform the world with the gentle side swipe of a finger?

Stay tuned for the next installment of My Second Slap Upside the head!

photo by Personeelsnet's on flickr.com

*Edited/update:  #number of Gen Y's.  A lot of conflicting information regarding the exact number of Gen Y's, but 76 Million seems to be a number which is more reflective of current norms depending on what year you start the count.

*Blog Update #2:  Christian Sterner has written an excellent post about Gen Y's and Marketing.  With his permission, I am posting this link: Top Four Reasons Why You Should Not Use Video in Your Marketing. Christian shares some great perspective and insight.

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Comments(95)

Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Well, gotta roll with the changes...but I'm with Lenn...grow up first. My kids are 25 and 26 although they are responsible kids and don't share (just kidding)  they do pick up their clothes and wash their own clothes though but still living with gramma. I too get energized by some of their ways...(Midori's comment) and it'll be interesting to see what transpires.

Awaiting the next post...

Sep 06, 2007 06:07 PM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Lola, I'm back.

I'm still reading your comments. It is very clear to me that if we don't re-define ourselves, we will be re-defined by market forces. If these kids are the market forces so be it.

I for one think that we need to "establish" just what a real estate broker is and then "guard" our turf. We are under assault from all sides, not just these kids.

I'm in the process of writing a post on the battle we are having or should have with attorneys. If we don't guard our niche we will find that we have very little ground left to stand on.

Bill Roberts

Sep 07, 2007 03:23 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Hi Diane, Thanks for stopping by and commenting.

Todd...Yes, to these folks we are definitely "older." :)  I'm sure that Gen Y's will keep us all on our toes!

Midori...I feel your pain. :)  We all thought that real estate was hard work...and this was before blogging!

Sep 07, 2007 06:50 AM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist
Youtube is the wave of the future - do you have your camcorder (or is that genX) ready? :-)
Sep 07, 2007 06:59 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Hi Cheri...Thanks for your comments and for sharing some of your son's thoughts.  It will be interesting to see if the perspective for Gen Y's changes as they mature.  I suspect it will. However, I think they are fundamentally different in some unique ways particularly because they have grown up with such incredible access to information. Consequently, Gen Y's have an entirely different relationship with the acquisition of knowledge than previous generations do. 

How this will translate into business waits to be determined.  But, I know that encrypted signatures would make the sort of closing that your son mentioned possible! I was amused by his response to how technology would affect your job...oh, the luxuries of youth. :) 

Sep 07, 2007 07:01 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!
Coach Steve, I visited your site and I'm listening to your radio show and your conversation with a caller from Costa Rica.  This is really cool.  Looks like a wonderful way to connect using technology in an innovative way. Thanks for stopping in and posting a comment and the link.
Sep 07, 2007 07:07 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Hi Brad, Thanks for sharing your thoughts and the links.  The websites were very interesting and are indicative of a trend that is growing.  There are pros and cons to these emerging models and the marketplace will determine what eventually thrives. 

Recently, I had some significant computer issues which had me on the phone for many hours talking with operators in the Philippines trying to resolve my problems in the United States.  Eventually, I hired a local specialist who came to my home and was able to correctly identify and correct my issues. 

As I explored the sites above and read the news articles, I was struck by the fact that these "cost savings" will probably be obtained by giving up some level of service.  Both companies had centralized call centers...I shuddered...could buying my house in the future resemble the recent experience I had trying to get service on my computer?? I wonder...

Sep 07, 2007 07:28 AM
Cheri Smith
Prudential Gary Greene, Cypress TX - Cypress, TX
Realtor Prudential Gary Greene
The only issue will be if there is a blackout or the web gets shut down due to a virus or something. This generation won't know how to survive without the web and all of the other technology!!
Sep 07, 2007 07:35 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Hi Rick...Thanks for sharing your insights.  The old business models are gone but what has not yet been completely determined is what the NEW business models which survive and thrive are!  That being said...one thing is certain we would all do well to be open to change and to be brave! :)

Hi Chrissy..Thanks for stopping by to read and comment.  I have certainly learned alot throught blogging!

Hi Lisa...It may not be as rare we would hope.  The biggest issue to me is why...my generation would not have invested time in 'breaking the code", we would have saved to buy the phone and then used the network provided...at least the vast majority of us would have. :) 

Sep 07, 2007 07:39 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!
Hi Rob...interesting point.  Many Gen Y's have lived fairly affluent lives compared as a whole to other generations at least in this country.  It will be curious to observe to what extent their desire to "share" goes.  In many parts of the world, people live much closer together than we are accustomed to here.  But with house prices skyrocketing, this may be one of the adjustments that people will be willing to make in the future.  Who know... 
Sep 07, 2007 08:01 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Thank you for the comment and the compliment Patrick!

Hi Bob & Carolin...Continuing to be open to learning is the key!  Thanks for stopping by.

Hi Sally, Thanks for stopping by to read.  I appreciate your comment.

Hi Bill, Thanks for stopping back.  I am intrigued by your article on the "battle" with attorneys.  I'll have to read that.

Sep 07, 2007 08:10 AM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

OK Lola, here it is To Be or Not To Be, Legally Speaking

I "featured" you, so you really have to read it and comment.

Bill Roberts

Sep 07, 2007 08:25 AM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Lola- Great post. Thanks for writing it. You write so well. I look forward to your posts. That being said- maybe my family is not the norm anymore. I have 4 grown up Gen Y s. They are all very conservative. Two work with us in Real Estate. They are all artists and have a strong belief in protecting their work and intellectual property. They are very conservative in their views, sometimes more than me. They are not into all the gadgets. They are all very right brained except for one. My 2 daughters, 21 and 18 do tend to show a sense of entitlement but I think that is an age thing. I know most of the gen y kids at my church are all very conservative and do not believe in the free information thing as much as it being stated outside of this circle. None of them steal music except one and only a couple at church have done so. They are taught from a very early age that stealing is wrong no matter how it is justified. My son just bought his first house last year and he wanted it all to be very traditional. 

If it does turn out to be the way people say, well, then I better get busy revamping my marketing program for the senior citizens. But then again, I will be kept rather busy with baby boomers until I retire. Katerina 

Sep 07, 2007 10:58 AM
Vicky Poe
Good Ole Rocky Top - Crossville, TN
Realtor/ Auctioneer
I am a Boomer, but I am raising 3 y's.  They don't talk on the phone everything is "text" with an ipod stuck in their ear.
Sep 07, 2007 03:18 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

This was an excellent review, Lola. Understanding how other generations think, process information adn so on is so important to better serving their real estate needs. There are too many folks ready and willing to do what need to be - we either get on the bandwagon or we stand to lose many opportunities...which we cannot afford to do in this market. Thanks for another well written and thoughtful piece.

Jeff

Sep 07, 2007 04:58 PM
Shane Leady
Apella Business Solutions - Zolfo Springs, FL

Is it not great what you can learn from the youth?  This is a great post and wake up call at the same time.  I think that there is a lot to work with in this post for the real estate industry.

"The kid (of iPhone hacker fame) felt that his solution to the "problem" faced by many who were held "prisoners" to a proprietary system was ultimately the property of the world."

I really like this line. It is this kind of thinking that just might get us into deep space or even maybe save human kind .  Sure it may seem risky or counter productive for business right now but if it can change business then it may not be so bad in the long run.

Information is king.  I almost feel like I need to hire a few of these kids.  :)

Sep 09, 2007 02:15 PM
Membership Cancelled
Pullman, WA
We need to continually learn about changes in our industry. Doing this can help us make transitions with this generation.
Sep 12, 2007 10:08 PM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Hi Katerina, Thanks for your comment.  There will definitely be a lot of Baby Boomers to serve although the Gen Y's are a larger generation.  It is about choosing a market segment that one feels comfortable with, understanding their needs and behavior and then creating a great service plan! 

Hi Vicky...Thanks for your comment.  Yes, Gen Y's have a different view and way of life!

 

Sep 15, 2007 01:37 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!
Hi Jeff, Thanks for stopping by to read and comment.  Every generation is different, but I think the advances in technology have amplified the differences in a way that has not been experienced before.  It is important to seek to understand...because through wisdom and knowledge, appropriate actions and decisions can be made.  I appreciate your insights.
Sep 15, 2007 01:46 AM
Martinelli Caputi
Martinelli Caputi & Associates, Ltd. - Warwick, RI
& Associates, Ltd.
Lola:  Gen "X"er here.  I really enjoyed the post (linked from Bill Roberts).  I wouldn't worry about the kiddie hackers... they don't really care about hacking a MLS system (unless they're in the biz, they wouldn't have a clue what you're referring to!).  The iPhone hacker was frustrated with Apple's determination to capitalize (monopolize) on technology that is available to the public.  You'd see the same effect if a new computer was invented but could only be connected to the internet via 1 internet service provider.  Unlikely, yes... but you get the idea.  The internet has definitely changed the game... as real estate professionals, we will have to figure out the best way to keep the game within our reach.  Thank you for the thoughts (and the comments everyone!).
Jan 10, 2008 09:22 AM