Throughout history we can trace changes in society, brought on by cause and effects of certain events.  Our country went from agrarian, to industrial to the information age.  Each transformation of society brought with it new practices and ways of living and going about our daily lives.

The progression of real estate practices has been effected by societal and economic changes too.  For those of us that have been in the business for 20 years or more, we have personally witnessed and experienced these industry changes.  Let's explore these changes.

1. Owner Centric ~ many old timers will recognized this period of real estate when it was all about The Broker or The Company.  These old timers had the mindset that the agents belonged to the broker as well as everything they did.  Agents working for these brokers did so and were paid a commission split.  If they left, they left brokerage, they left all their accumulated business behind.  The all-empowered broker controlled the show.
   
2. Agent Centric ~ In the late 1970's a new concept came on the scene.  First developed in Arizona, Realty Executives developed a plan where the agent was in control of the business, rather than the broker.  Like most good ideas, this one was taken and made popular by Dave & Gail Liniger, founders of RE/MAX.  To say RE/MAX changed the industry is the solid truth.  Using the an agent centric concept, the agents became the center of the transaction. In the agent centric plan the agent receives the lion's share (100% or close) of the commission.  The agent in turn pays a usage fee for his office space and other itemized costs.  The agent is in command of their own business paying for what is important to him.
   
3. Consumer Centric ~ Thanks to the age of information, we are now entering a period of time where the consumer is demanding and receiving services of all kinds.  Real estate is now being delivered via a menu of services.  Everyone doesn't have to have the same helping of real estate services.  Consumers are showing up on our doorsteps with more information than ever.  We as Realtors have to run pretty fast to keep up.  We are being asked to change the way we have done business in the past, if we don't accommodate the request, the business clicks on the next link.

 What Centric are you working in?

 If you were trained in the owner centric model, you may be finding the changes in real estate very difficult to take.  We tend to stick with the ways we were taught, deeming them  to be the "only way." Sales techniques have evolved since the period when the Owner Centric model was popular.  At that time, agents were taught to "overcome objections" with popular retorts and standard comments that often times had little to do with the customer and more to do with "strong arming" them into a sale.  Today, techniques like this are very transparent and work against most agents.  People withdraw when they feel pressure.  High pressure sales techniques are not what the consumer wants.

Agent Centric times were very interesting.  Agents became so enamored with themselves, believing that they had to convince others of their value by putting out marketing materials focused on themselves.  High glossy four color personal brochures were all the rage.  We had our own logos with slogans and pictures of our luxury cars and pets all because we were trying to affiliate with the consumer.  Success breeds success was the message.  But this has come back to haunt us.  We so successfully created the image that real estate was an easy way to success.  Consumers now believe we are all rich and now they want some of the action.  Little do they know how much it costs to stay in this business.

 Customer Centric is the next phase of real estate.  The Consumer now has information at their fingertips.  They know what is for sale and how to get financing.  They have zero patience for high pressure or egotistical sales people. They want choices, validation and consultative real estate services.  They don't care about anything but themselves and their goals.  What they want are agents who can get them to where they want to be, on time and without drama and stress. They just don't have time for anything else.

Avoiding the Disconnect

As Realtors we need to be relevant to the needs of the consumer.  Despite all the rumors about our demise, the consumer still needs us.  What they want is relevance, they don't want to be squished into our pre-made box of how we do business. They want real estate their way...blame it Burger King, Starbucks or who ever...the customer Centric Model is here.  Those agents who recognize this fact and can speak to the consumer on the consumer's terms will find opportunity. 

Those agents who are still wrapped up in themselves will find the end is near.