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The Future of the Real Estate Office... and Company

A note of thanks to Marc and Brian of 1000Watt Consulting, Joel Burslem of FOREM, and Ash Munshi of Terabitz for their contributions to this topic. Picture this…

You own a brokerage in a major city. You are an established name. And like everyone around you, you currently suffer at the hands of the real estate downturn.

Business is down 40% and your costs are spiraling out of control. Costs that include:

Print advertising. A surplus of marketing, IT, managers and support staff. And a lease for office space that provides too much room for too many agents who have no need for it.

This image is filled with roll-top desks, conference rooms and employee break rooms. It could be an office in any town, in any city, in every corner of the United States. And somewhere, in some lonely office within it, the sound of CFO’s weeping only masked by the whispers of agents talking near the coffee pot can be heard.

“So… how’s your business” “Business? It’s really tough out there.” “Yeah. Did you hear about Steve? He went to (competitor X) the other day?” “Really? Wow… Sally took a part time job at Coffee-Joes.” “Huh… That’s smart. Gives you a little cushion.” “Yeah. I’m hoping the Spring Market kicks in soon.” “Uh-huh. Maybe the stimulus thing will help. I wish it was still $15K.” “Well, I spent some money on a program to get some Internet leads yesterday.” “Really? That’s a good idea. I just started a blog.” “That’s a great idea. I heard about that Social Internet. That’s where the buyers are…” “Uh huh… I’m going to focus on the Luxury Market.” “Well… I’m gonna go to some broker’s opens. Wanna go?”

Do these images look and sound familiar?

What it could look like .

Unlock this door and enter a 2,000 sq. foot space. Inside are half a dozen customer service people with varying degrees of specialties that range from sales to legal to mortgage services. Outside, an intern arranges the courtyard space that includes tables and chairs that run along the sidewalk. Outside, music is piped in from satellite radio. Inside the flat screen panel televisions spark to life. The smell of fresh locally-roasted coffee roasted specifically for your company and branded with your logo begin to fill the air as a local pastry company delivers trays of treats.

The agent “sitting floor” dons a headset connected to her computer linked by VOIP to a central server that holds all the company listings, information, and agent contact information. The first call of the day arrives. Since the caller dialed an extension for property information, before the call is answered, the property information, pictures, property videos, neighborhood market information, tax information and comparable properties are populated on the screen.

The agent who answers the call is instantly able to provide all the information to the caller. Since they are part of your “Client Care” group they can communicate effectively and intelligently with the caller on all buying and selling . The selling agent’s schedule also appears on the screen, so the sitting line agent can setup a buyer’s interview an hour before a the appointment, which is sent immediately to the selling agent’s handheld.

A stream of passerby’s stroll through the door taking advantage of the ancillary services made available to them. Whether it sipping coffee, accessing the web from the mini bar of computers, stock quotes, RSS news feeds, and short video spots of properties and the company’s current CSR projects flow across the LCD screens as they wait. For those have brought their laptops they freely tap into the Wifi provided and log in from the companies branded webpage that also includes local news feeds, real estate information, videos of homes for sale, current market statistics, and more.

Outside the brokerage their solar powered sign displays the time, the temperature, current interest rates, as well as the # of kilowatt hours this particular office has saved by doing their part to go green. A fleet of Zip-Car hybrids that sport the company logo on them are parked out front available for both agents and local residents to use upon request. A number of dog bowls with fresh water line the side of the building and in the windows are pictures of local school outreach programs, sports teams, and children’s social responsibility groups that this brokerage has been a part of.

A young couple enters and is immediately greeted by an office manager who answers their many questions about the current real estate market. As a result of this discussion, which reveals them to be first time buyers, their needs are matched to the appropriate agent rather than whoever happens to be free at the moment.

The right agent greets the couple and takes them through the process of buying a home, the benefits, potential downfalls, and explores their short – mid – and long-term goals. He discusses school districts, why they are looking to buy a home right now, the current state of the real estate market and then asks if they have learned about “Financial Responsibility in Lending” yet. The couple replies no.

The agent invites the lending professional who occupies space inside this facility. They present a “Financial Responsibility” worksheet for these first time buyers. It’s a multi-paged brochure that discusses the responsibilities associated with mortgages, what is needed to apply for one, and what type of information will be required to apply for a mortgage.

An interested lunch crowd is invited to gather and attend an impromptu performance that includes a set list of economic talking points such as “Improving your Credit Score” and the Are you stimulated by the housing bill. This free seminar is held 2 times a week and is part of the “Home Buyer Education Curriculum”. A free flash drive containing budgeting software, articles, and a copy of the presentation is provided to each of the attendees upon completion of the seminar.

Wouldn't YOU want to work here?

The real estate office of the future starts… and ends… with the real estate Company of the future. I think that this is a good start.

Matt Dollinger
Read more like this at The You Factor.com

Posted by Matthew Dollinger on 03/15/2009 03:47 PM

Comments (170)

Industry Future in the ActiveRain Channel

real estate, consumer loyalty, client relationship, future industry

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170 Comments on The Future of the Real Estate Office... and Company

MAR

Hi Matthew~ Would I want to work there? You bet I would!

Matthew,

I takes a new type of office. to work in a new type of company. Very intriguing post. Really makes you think. Thank you

Nice post Matt. I would believe this business model would appeal to today's consumers. I know that technology and instantaneous information help me connect with buyers.

I firmly believe that this takes care of so many factors... I didn't even get to the aspects of

- citizen journalism

- social responsibility

- drivers for the zipcar fleet so agents could use mobile broadband with clients in the back

- sponsoring local sports teams, etc.

This is the future of real estate, integrated into the community and serving the desires of the consumer. Think ING Cafe + Apple Store + Real Estate Office = The Future of Real Estate

MAR

Good ideas. You have to spend money, smartly, to make money. I like the green side of it. Thanks.

Boy oh boy I would love to work somewhere like this. This type of an office located in a building of offices could be like the kitchen of home, where everyone just migrates to for comradreship! Great post! An entertaining read...

I wouldn't think twice about transferring to a company like that. However it sounds like it would require lots of start up capital.

Good post. There are some good ideas you came up with. The start up capital mentioned by K.T. could be reduced if you partnered with the franchisees for the ING Cafe and Apple Store. they would bear much of the start up cost for those and also sell ads on the billboard to generate additional revenue. Just my $.02

Wow! Wow! Wow! I'm in love!

What a fantastic concept! I'm game! Do you want to create this franchise? Count me in! Seriously! If anyone is interested, let's do it! I LOVE THE CONCEPT!

Matthew, thank you very much for this enlightened post! I will read it over and over, so that I will not miss a single granule of it. I will start focusing on this concept. Let's make it a reality!

Matthew, with this blog you won me over. I'm easy... I believe in love at first blog...

This is now featured on the Optimist Group.

I just re-blogged it too. This concept is just soooooooo good! I will read the rest of your blogs this evening. I'm so excited about this! Thank you Matthew! You are brilliant!

Hi Matthew, it sound great!!!

Matthew, have you considered moving to South Carolina and opening this office. Your concept is so far infront of the curve that it just takes my breath away.

I just flagged this for a feature.

Wow thanks Sandy... I'll put you in touch with my fiancee and you can convince her! Shouldn't be hard since she HATES cold weather!

You got any nice horse properties that we can look at???

Thanks again for the potential Feature...

If you like what you're reading, I would suggest subscribing to my main blog at www.TheYouFactor.com

Matt

MAR

Matthew: I sell in the upstate of SC and we have some beautiful horse properties. Your post deserves to be featured. It is MAJOR impressive.

Matt: This is going back up to the top of the Optimist Board again tomorrow, but today we are having LOL Friday. If you have any jokes you'd like to share, please post them here!

MAR

Matthew.....the memory works in strange ways. I read this blog, and said, "Self, I've read this! What's up!" Whew....luckily, I copy/paste/saved it in my Broker File, and went back to find it. All be darned, same author! LOL!

This is such a totally cool office....hence why I saved the info for the future! Who knows?

The agent "sitting floor" dons a headset connected to her computer linked by VOIP to a central server that holds all the company listings, information, and agent contact information. The first call of the day arrives. Since the caller dialed an extension for property information, before the call is answered, the property information, pictures, property videos, neighborhood market information, tax information and comparable properties are populated on the screen.

Now my question is, is this kinda of software available? I suppose for a price it is, but what a concept! This concept certainly has the makings for fitting in Chicago or Midtown Atlanta! Maybe?

Glad I found the article again, and the author!

Wow Matthew you made it to featured! This is a brilliant post and deserved to be featured. Congratulations!

Matt...just the mere thought about a new way...or more importantly breaking away from the old way seems exciting. Removing the rigid walls of conformity may be just the thing to jump start a differnt spirit of success. The whole concept of the public invite is a winner, and such a departure from the formal bricks and sticks barrier we have gotten used to in a real estate office. Nice multi-function yet , compatibility vision.

Good article....the internet is changing everything. Its making the old ways obsolete.

I dont even worry about going to real estate offices to market. ( Im a home Inspector )

Im getting my business from internet searches.

David Nasser

www.pyramid-home-inspections.net

This is an excellent concept. The old form of real estate office has lost its significance.

Brian Madigan

Congratulations, Matt! You got the GOLD STAR from Active Rain. This is now featured on Active Rain - the main board.

WELL DESERVED!

Good stuff Matthew! I love the way everything is integrated especially the way the info pops up for the receptionist so she is ready to answer any question the caller might have about the property

Sounds like a fantastic plan to implement in anyone's 5-year plan as well as implement small concierge services in one's everyday business.

Well done and very impressive. Those who lead with revenue will survive. Sadly, most don't and we will lose many good agents........

Sounds good, but I think there will be even more to offer. Could any of us have perceived how much this business has changed over the last 10 years or the tools we now have?

Hey Matt!

Our office which celebrates its 2 year anniversary at the end of this month closely resembles the 2nd scenario you presented. Although, we don't have the impromptu lunch crowd presentation...we do have vendors or builders come in each Tuesday to make presentations and provide a free lunch for those agents able to attend.Our broker, Gayla and office manager Sharon are AWESOME! We now have 50 agents with more to come on board soon!! I am blessed to be part of such a great office.

Financial responsibility counseling is a must. Getting financed these days is tougher, but making application has never been easier. The government wants to assure borrowers that they have lots of choices when it comes to financing, and additional opportunities to salvage their income by providing value at the settlement table. HUD's RESPA GFE revision looks promising.

Fascinating post. I would love to work someplace like this...

Nice. This is the type of outside-the-box thinking that makes ActiveRain fun.

Wow! What a picture. I can easily imagine it in virtual office. Brick and mortar one sounds costly but what a way to develop the Real Estate business. What a way to create an attractive image of professional Realtors(R)!

Man... and I thought a 55 degree Sunday with the dogs at the beach in Chicago couldn't get any better. Here's the response list and THANKS to everyone for sharing your thoughts... this is a WORK IN PROGRESS so keep sharing your ideas!

Mirela - special thanks to you. You made my weekend.

Sandy - Thanks SOOO much for being the first to flag. Much appreciated

Thom and Ray - I think that this concept would do well in either a large metro city like Atlanta or Chicago, if it was the right neighborhood. A place that's a little higher affluence, but still has some up and coming renters and such. "The" place to be if you will. AND... a must is foot traffic. The technology DOES exist and has so for a while. Cisco has phone systems like this that have been around for at least 10 years, and now the Verizon Hub (pictured) can do much of the same.

Norma - There's LOTS more to offer, but I was trying to keep it from been TOO whimsical. Some other thoughts are

Local acoustic bands and sponsorship of local little League (or similar) teams
Neighborhood Stewardship through Corporate Social Responsibility
Hybrid minivan's or similar to drive the agent and clients around with mobile broadband? (too kewl)
the list goes on

Sonja - sounds like a great office you work out of. BUT... the idea here is to get the CONSUMER to want to be part of the office, not only the agents. Think ING Cafe + Apple Store + Real EState

Think about this. Starbucks wants to be "The Third Place" in our lives (read my blog post by the same name here) Why can't we do the same, but focus around their largest investment ever?

David - You hit the nail on the head which is one of the key things I coach all of my agents to do. BECOME THE REAL ESTATE ADVISOR. That's why the ONLY agents that are able to work "floor" there or work with clients have passed an extensive number of tests to not only deliver 110% customer service but also know the industry, mortgage, financial, and local market trends upside down. Wait a minute.. maybe NAR beat us to this???? (FEEL FREE TO USE AS MARKETING IF YOUR NAME IS CHUCK!)

KEep the ideas flowing... this has a long way to go!

Matt Dollinger

(Like what you read? Read more at www.TheYouFactor.com)

I'm impressed!

Wish my name was Chuck...

Interesting, as a Broker/Owner, I'm always looking down the road at the big picture. The concept is great in theory. I'll pose some questions here for the sake of discussion only (I have my own answers to them but will refrain from posting them here):

Have we really come so far that agents want to go back to having their Brokerage have such control of their business?
Would this type of concept relegate agents to mere order takers?
Is this the road leading to agents becoming employees?

Again, just some thoughts for discussion.

Colleen,

Interesting points. I think that as someone that has worked at Re/Max or any other company where the splits are higher but agents are billed for more things, this might kind of hit home (if your office is different I apologize).

1. The agent needs support. they need marketing, tech, training, coaching, etc. Every agent that I have talked to that is doing good business right now is working 2x as hard as ever before. So I think it's a total advantage for them to have these kinds of things taken off their plates.

2. I don't see where the control comes into play? If an agent WANTS to do floor or work with the walk-in traffic, I think that they should be held to an immense level of professionalism and ethics. This is not grade-school baseball where everyone gets to play... this is the largest investment most people will ever make.

3. Order Takers? I don't think that's really a concern. They would be actually providing value to the consumer that comes in the door and are expected to provide it. I think that this would be no different from Floor or Online business with regards to order taking.

4. I still have split thoughts about the whole "agents as employees" element. There's alot of good, but I know that by making someone an employee 50% of the time that stifle the drive of the self starters... Anyway, that's another post for another day.

Thanks for the comments!

Matt

If it works for the people who need to get their homes sold then it will work! Very nice post.

This sounds a lot like the physical plant that we designed at Inman in San Francisco last year. We had a "Brokerage of the Future" session, and part of it was the physical plant...

Matt,

How progressive. My market is very small, only 270 residential listings right now, so I don't see something like this happening anytime soon, but components of it certainly.

What I focused in on is the wonderful customer service and client education. I am all about giving the best customer service possible and about client education, however I am not an expert in every aspect of a transaction. I have formed a team of trusted professionals to service my clients, but there is always room for improvement. I will read your post again and steal borrow your ideas that can be incorporated into my business.

Thanks for the blog and congrats on the featured post,

Matt - This sounds very interesting, maybe when we look back in 10 years this will be reality. Business as usual will not last much longer.

Matt, are you recruiting? Sounds like a place I want to be. I would love to have more things going on in the office, more energy, energy makes energy. Great post! I am bookmarking this one.

That is a really good concept and the companies that get the future it's not about controling the data but how it's given to people is the key will survive

Matthew, Talk about thinking outside the box. Of course my outdated model was the office of the future when I started in 1995. I bought my first cell-phone. Had never heard of a laptop, and a cell phone was for making and receiving calls. Digital camera? Tax info on line, NO MLS books? Things are changing rapidly and by the time I put together the wonderful dream you described, I'm afraid it too will be passe'. Great Post!

What a great post to force people to think out of the box. My office has an abundance of space and we are always looking for ways to "share" it with the community. We're also in the middle of planning some home buyer and seller seminars. Thanks for the great ideas!

I am loving the concept of functional over fanciful! I just opened my own office last month and I set it up to be very functional and not a posh place where agents can loaf and drink coffee all day. I had a top producer agent walk into my office to interview and she did a once over glance of my functional office and said..."THIS IS IT????" and I said, this is all a professional producing agent needs! I stand by my assertion that this is the office model of the future...oh and I am in a rural market too! Thanks for the great post!

Matt, WOW! So funny that I ran across your post here. I relocated to Huntsville last year, from Nashville. My old company was "da bomb" to say the least. The owner of my old company just flew some of his staff out to Chicago to visit your company...They came home SO excited. Anyway, I'm hoping to help open an office like this in my area in the next year or so...working on it :) (shhhh...don't tell, lol).

Matt - Where do I sign up? Just like the old real estate business model, the way mortgage brokers operate needs to change as well.

I suspect that we will see the death of many mortgage broker firms this year if they do not adapt and change. I for one plan to be one LO who survives this market and I am already making my changes in order to do that.

Matt, OMG! I'm so excited to read your post! Yesterday I had posted on my blog about whether or not to re-open our storm damaged office in a "brick and mortar," traditional office...or, go virtual. The concept you outlined in your blog is one that I have been working on for over a year...as the Galveston Real Estate Center. Our concept went a little farther in creating a marketing "look" similar to our local Chamber and tourist bureau. We've created an "official" logo that is consistent with other governmental entities so that it attracts tourists, as well as the general public. I've shared my ideas with others and have had all sorts of responses. My agents love the idea. Agents with other companies laugh. My local Chamber didn't want the competition! I would love to get things under way, but we simply haven't been in a position financially to do all things I had imagined. Now that we are rebuilding, I'd love to bring this concept to fruition...and your blog has been a huge inspiration!

I guess it's time to take the plunge. We are at a point where we can design a new office any way we want. A corner location in our center is now available. We are on a main street...so, the location could be fantastic. Although my office management program doesn't "automatically" pull up listings when a caller dials a property ID, it does have all the information available to the agents with two simple clicks...We've already started spreading the word of our concept to developers and other ancillary service providers so that visitors will have as much information as possible. Additionally, we've been collaborating with a supplier so that we can offers books, lock boxes, riders, etc. to local agents, as well.

Most of the other components...LCD Screens, coffee bar, comfortable seating, etc. are ideas we plan to incorporate...eventually. Where you got me was the dog bowls! I love it!

Thanks for the timely info...

We had a similar type idea/venture as a brokerage model here in Atlanta for about 10 years . . . New Homes America. They started in Tampa, FL and then moved/copied the model for Metro Atlanta.

They had 2 or 3 locations around town with a car dealership like showroom marketing many of the major Atlanta builders. Walk in traffic was generated from ads in real estate magazines and real estate books. Worked well for a while but eventually became extinct. Not sure exactly why it died.

The future is now and obsolete in 5 years. Your concept is interesting . . . keep the ideas flowing! Thanks for a glimpse into the future.

Mark,

Thanks so much for the comment!

The concept that I'm proposing wouldn't have any models, buildings or anything like that. That's thinking from a real estate agent perspective, not from a client perspective.

The CLIENT is in control and they're not going back. We have to accept this and embrace it. We need to provide value and make it comfortable for them to come to us again...

Remember this... We are one of the things caused this mess in their minds. We were greedy, we pushed people to spend more than they could. We advised them to take sketchy mortgages... etc. I'm not saying we did this - but this is the client's mind!

We have alot of work to do for our industry, and understanding them is the first step.

Matt

I don't think this is very far away! It is just that so many are STUCK big time in the past! Count me in on this model! It is what consumers want.

MAR

Interesting post. Still really evaluating the benefits of the physical office at all these days vs the overhead expenses. So much can be done virtually. Lots of offices closing these days due to the costs of keeping them open.

Matt,

It is an interesting concept. This broker should located inside of the busy shopping mall with booth so the agent can greet the shopper also. I love the improu seminar in lunch also. That is a great idea to bring warm leads to hot.

Grace Keng, Silcion Valley realtor, California

Matt, my company treats walk-in and phone traffic much the way you describe. Clients are distributed to the agent that most suits their needs.

I formerly worked for a full service company and although it was well received we were expected to use the companies services and outside lenders and title companies were banned from our office. I like the opportunity to do business with varied services that fit the needs of my clients. I do alot of networking in the area where I work and enjoy doing business with the friends I make.

Sounds a lot like Foxtons in London. Foxtons made an attempt to enter the US market in Boston and New York but pulled out.

But, I agree real estate offices and services need an overhaul to catch up with the times.

Hey Matt,

Great post to stir the imagination. Disney taught us about imagination. We need much more of it.

1. It could work in a condensed city where people walk or with necessary public transportation (subway/rail).

Constructive critical thinking...

2. The concept also would be in competition with all sorts of industries for that same "piece of the market pie" doing similar things with their various focus product. (i.e. similar to new builds; too many agents)

You and Sean make a great point: could you co-op with other businesses to work the same "piece" together, but in your different ways. That would depend on the other companies needs at the time.

It almost sounds like a mall once you go that route. Then you'd have to trust the other businesses and their services being out of your quality control.

If it's a one stop shop and truly customer focused, I feel something else is missing to really compel people to make it a life brand. I'm not sure what that is yet, but there's something missing ... the "it" factor.

3. Expand the "brand" with an online parallel, so that one doesn't always have to visit the store to get a similar or continued experience (i.e. live video feed of the lunch talks, phone cams so you can see/talk with an agent/advisor/consultant you've already met or will meet, etc.). This concept assumes that so many want to visit an actual place.

I think one would be more likely to visit once a connection is established on the customers own time. That would compel them to come in and experience the place at some point.

Just some quick thoughts, but very good stuff.

M/I Homes just opened a store at Easton Town Center here in Columbus. (not going for any SEO there, haha. It's in the comments here on AR). During my visit, I saw a few similar concepts. There were some big positives and some major holes.

We shape the future. Plan. Try. Do.

Here on the "right coast" we acknowledge that many of the cutting edge ideas come from the "left coast". I for one see this being a hugely viable model and would welcome whatever the "easternized" version proves to be! LOVE IT, LOVE IT, LOVE IT!

Matthew - Wow ! Rock on ! Now that sounds like an office climate ! Something for all of us to strive for. I love it ! Thanks for the vision !

Hi Matthew -- I think virtual offices will be the wave of the future as consumers demand more for less, and the Internet coupled with local expertise combines to create the best of both worlds, all without brick and mortar. It's already in existence, small, but growing.

Very interesting post, and I think there are elements of this in play today and will be even more pronounced in the future.

Great post. I posted on Trulia wondering what the consumer expected in a real estate agent- I think that the consumers' expectations are changing, and agents are having a hard time seeing that- or being oblivious entirely.

Matt - You are so right!

The CLIENT is in control and they're not going back. We have to accept this and embrace it. We need to provide value and make it comfortable for them to come to us again...

Thanks for the concept. You won't have any problem getting agents to work there or clients to use the services!

Great ideas here. I'm in a professional office building with doctors/lawyers/accountants. Not much walk in traffic. But I would LOVE to be downtown on a busy corner.

I have no floor duty. All leads get filtered through me (the broker) to be qualified and then sent to the APPROPRIATE agent. We have agents that are specialists in niches. One agent is great with first time homebuyers, another investors, etc. Some work certain geographies. The call goes to who fits their needs BEST, not who is next on the rotation. It's all about serving the customer best.

Matt - I love it when people break out of the regular ideas of a business model.

Here's my questions, that I think a lot of excited agents overlook:

1. What type of initial capital would be involved?
2. How many people would need to walk/drive by every day, and then what percentage would enter?

Could I offer some suggestions to this model?

1. This example doesn't provide much room for a-synchronous communication. The BEST agents will not be sitting around the office, waiting for someone to "walk-in" - as we tell our agents, the BEST agents are out showing houses, on listing appointments, or writing up contracts - not sitting around for floor duty.

2. This model does't incorporate the theory of "specialization" and "strengths". Incoming calls should be routed to those with the best track record of converting calls to appointments. Ditto with Buyer Presentatations - I don't care if you've got lots of time in your hands that day, or if you consider yourself a "first time home buyer specialist" - let's try things out, and see how many you convert over time.

I've seen a lot of differenct business models work in real estate - I'm sure this one could work, but I think you have to make sure to incorporate some more strong, business principles. Too many businesses have failed based on a "build it and they will come" mentality. And real estate agents can get really excited and even LOVE where they work, but sooner or later, without profits to both the agents and the broker, people will move on.

But, overall, I must say, your ideas are exactly what makes this country great - coming up with better ways to do things!

Sean Goerss
Realtor, St. Paul, MN
Co-Founder
www.RealEstateTechnologyExperts.com

Twitter - http://www.twitter.com/seangoerss
LinkedIn - www.linkedin.com/in/seangoerss

Matt,

This is a great post, completely thinking outside the box, but executing simple changes and tasks to reinvent your company.

Not to steal the spotlight, although I would love to hear what you have to say regarding our new virtaul walkthrough service I have included my post below.

http://activerain.com/blogsview/986097/Walkthrough-a-home-from-the-comfort-of-YOUR-home-Sounds-CrazyBut-True

It really speaks to the CLIENT being in control, of what they view, in a non pressure atmosphere

Sounds like a fun place to work, but I like my set up. I work from my home 90% of the time on office days, on others I am out doing bussines.

Matt,

Thanks for taking time to respond to my comments. You're right . . . some consumers think we played a part in causing this. Perception is everything.

Harry Truman said "The only thing new in this world is the history you don't know." I believe that. I know there's a lot I don't know, but I'm always eager to learn more. Very thought provoking.

Thanks,

Mark Hall

Matt, I just found your outside blog when voting over at the Blog Bawl and came here and you are on the feature board. Did you see me in your bloglog roll? LOL

Virtual offices, cloud computing....the future ? I suspect so. As someone who rarely goes in it would not effect me except in a good way and save the brokers some money.

Great ideas. Do you know of any companies that are implementing these types of ideas?

How far away is this future?

build it, the business model will change again if you wait.

I believe the real estate office of the future has many faces; this could well be one of them.

I really enjoyed reading your post, does an office already exist or is this something you're interested in putting together. Are you looking for an investor?

Hey -- Your office looks great -- It looks like a metropolitan version of the new office I joined -- Check out the video clip on Real Living Realty Experts Blog ( Garner NC)-- The open friendly layout really helps -- especially in this market --its puts people at ease -- no more maze of cubicles.

I have been reading more and more about this type of thing. I agree with many of the comments that it could work well in some cities. We as a profession need to be more forward thinking. I guess those of us here at AR would be considered that.

One thing is for sure...the dynamics of the real estate office is changing. Your vision is interesting and my broker and I have been discussing the inevitable (and welcomed) overhead reduction, streamlining processes and maximizing the available technologies. Thanks for your insight! Pam

I love the idea! I wish I had thought of it! The banks in the DFW metroplex have all gone to this style of banking. The first time I walked into the bank that was designed this way I thought I had gone in the door. Now that I live in East Texas....it's all old school here......but I think this idea has been a long time in coming.

This does seem to be on the front fringe of thinking... as I too have begun to see more "service based" businesses going to this model.

Coming up with an idea like this would have led me to believe you'd have been from Austin, TX (just kidding).

I thought I was reading Inman Rain for a minute there

This is greatest post I have read. Sign me up when you open this office! I am going to share this concept with my office! Thank you!

Here's a killer horse property: http://www.beachandriverhomes.com/Listing/ViewListingDetailsAuthenticated.aspx?ListingID=1524127&Preview=false&TabID=163204

I agree with part A of the blog, it sounds so familiar, but the future to me will be different than Part B. I see office space melting away from agents and more agents becoming virtual or car office agents. Not just agents but brokers as I predict that more agents with enough years under their belts will get their broker licenses and run small one or two person companies that are lean and mean and truly tech saavy. Big brand name real estate companies will be marginalized by the new wave of agents. Imagine what future agent that are currently graduating high school will be like when it comes to instant information and communication. Keep pushing because there's always someone better coming up.

I worked 35 years in a different that had a good (not excellent) professional environment. I'd jump for the office you describe in a heartbeat but only if it's in Hawaii.

Aloha

Great post Sounds like you are really on to something. I read something similar on Inman the other day. When I went to check it out they say you had to pay to join. Here is a link if anyone is a member. http://www.inman.com/opinion/guest-perspective/2009/03/13/a-real-estate-tomorrowland

Matt,

Awesome blog! I can "see" this office and know it would be a hit with consumers. Today's consumers are attractive to the more progressive agents. Attracting more consumers IS the bottom line, right? After all, without them there would be NO RE industry.

If I may add one more aspect to your virtual concept...virtual assistants!! As a virtual assistant I could see myself in so many roles in your ideal office. Someone has to create the marketing, the presentations, set-up the "virtual" MLS system that feeds into the software, etc! Of course you will need a good barista in the coffee bar, but they are usually much cheaper than a full-time assistant. When planning on going virtual don't forget a virtual support staff. We are affordable and already trained!

Whoever "builds" this office first call me...I want the first tour!

I think I'll put on my LOLLERSKATES and roll on by this post while LMFAO!

This is nothing but a laughable dream and ya know what's really funny, this post reminds me of real estate commercials where there's always some 30 something tech savvy agent telling you how wonderful real estate is and how great it is to work with so and so agency. It's such a joke and a blatent marketing lie. Until this industry rids itself of the 50+ and 60+ geriatric 'do it the old way' crowd, which makes up the majority of companies and real estate offices, there's no hope for a silly notion of an office like this.

You're better off having 1 room with 10 wireless computer desk stations. Put the manager in the corner and put a dunce hat on top of them to boot. We all know how agents treat their brokers.

On top of that, force every agent who works for you to get a smart phone. Watch how your agent population drops down from about 100 to 5.

2000 square feet?? Coffee?? Front desk agent with a HEADSET??? You're crazy. In 25 years maybe, but not a chance today. 20 somethings are avoiding this business like it's the plague.

Matthew

Welcome to the future of Realestate.

We see the changes and have been working on a website that we feel will be a part of that future.

CHUCK

Interesting post and certainly one that shows a great option for how the future real estate brokerage might be modeled. In our brokerage, Luxury Realty Group, we are 100% virtual, paperless, strong Internet presence, have class A office space conference rooms on an as needed basis, VOIP telephone systems and low overhead and yet we continue to provide first class services to our globsl luxury real estate clients.

Great post Sounds like you are really on to something. I read something similar on Inman the other day. When I went to check it out they say you had to pay to join.

Here is a link if anyone is a member.

http://www.inman.com/opinion/guest-perspective/2009/03/13/a-real-estate-tomorrowland

I would live to talk with anyone interested in this idea as I have already started to build this kind of company. Email me: info@reofusa.com when you get a chance visit www.reofusa.com

Quite a concept! This is definitely the real estate office of the future. I believe that some of your ideas will slowly be implemented into existing business structures and eventually there will be something to the effect of technologically sound and environmentally copesitic real estate offices in communities around the world. I can only imagine the effect it would have in my market and how much this design would stand out and as a result draw out clients.

Hi Matt, the article was enlightening and boy I would jump at it at heartbeat. Times have change and we don't utiliize all the tecghnolodgy that is available.. but yeah, I can't imagine what the start up cost would be... $$$$$$$$$$$$ The whole process systems sounds so refreshing. thanks for the post

Wonderful... I am all for your idea. Where do we start?

Hi Matt,

I like to inform you that this concept is been hunting me for a long time

I'm almost there, I been working hard and look like is going to work just fine.

I just open an office and I'm in the process of opening two more

I and some of my agents drive hybrids and we have VOIP system in place, the lending institution is inside and we working on figuring how to use the sun power to supply our electricity.

What a marvelous and interesting concept!

May I make a suggestion for adding one more person/business to this model: the Professional Home Stager! Then, when a potential seller walks in the door, they have instant access to a person who can guide them to getting their home "sale ready"...and your real estate company has the best looking listings in town. There's no point in showing them pictures of sub-standard houses: ALL of your listed houses can be wonderful!

Call a Home Stager when this happens!

Love the out of the box ideas AND all of the comments that this has generated. Looks like everyone wants a little more out of this business than the same old same old! Gina

When the markets slow down the overheads still have to be paid. Could commision revenue carry a severe downturn? Also great for the buyer concept. The Person who is listing would say come to my home> This is and always be a belly to belly business. This office however would bring in first time buyers at a alarming rate. good idea ....

I hate to be the one who rains on ANYone's parade...but to be more realistic, selling real estate is going to follow the path of travel agents....fewer and fewer are going to be needed and consumers will do more on their own from the convenience of thier home computers and even their smartphone. How many car dealers have increased their business by turning heir dealership into a coffee house to attract consumers? Thnk it would actually work?

It's simply a matter of consumers following the path of least resistance. Your best bet in the real estate industry is to make the process so complicated (which is happening every year with more & more paperwork required) that the consumer will HAVE to come to either an agent or lawyer to help them decipher it. And lwayers doesn' charge as much.

As the younger generation ages, they will be using the internet for gathering more and more information right from the comforts of their own home. Live video braodcast will be posted for anyone around the world to watch and ask questions at the same time. They will be able to "attend" several open houses in a single weekend while sitting at their breakfast table.

It's the real estate professionals who step up to the plate and embrace the changes not only in the market, but in the consumer, who will succeed. The majority of real estate agents have not yet learned how to "speak" to the consumer, rather they speak about themselves. Most have not yet caught on to the ways of advertising and marketing that has worked for major corporations for YEARS, so they continue doing the same things and getting the same results and blame it on the market.

I could be totally wrong. I've only been in the business for eight years observing, studying, reading, and asking questions. It's great to be innovative...actually it's a MUST to be creative in business. But at the same time one has to be pragmatic.

...please thiink more about the concept than the typos...it's been a long day. It's meant to provoke more thought into being creative and not ignore some of the proven methods used by other industries for many years. -Jim

"Build it and they will come". Great concept.

Thanks to everyone (ok almost everyone) who posted. I did write this article and submitted it to INman where it was published as well.

I do have a problem, and am going to have to try and bite my tongue while I respond to it, with one of the comments provided by Nick Ruta. I won't go into the derogative comment that Nick left above, (you can read it until it's removed by AR) but there are a couple of points I would like to make to Nick.

this post reminds me of real estate commercials where there's always some 30 something tech savvy agent telling you how wonderful real estate is and how great it is to work with so and so agency. It's such a joke and a blatent marketing lie.

Nick, I work in a company that has agents as young as 22 and as old as late 70's. They all love where they work because we have built a culture around the agents that helps them do business. It's a model where people love to work and we have done so through respect and "trickle up" economics. Oh... did I happen to mention that we are a locally owned company that last year closed 1.9 billion in transactions and... we're only 8 years old? Umm... and I would be that 30 year old saying that, well, because I'm the coach here and alot of my ideas get put into practice.

Until this industry rids itself of the 50+ and 60+ geriatric 'do it the old way' crowd, which makes up the majority of companies and real estate offices, there's no hope for a silly notion of an office like this. Put the manager in the corner and put a dunce hat on top of them to boot.

Nick, where I do believe that there needs to be some "house keeping" done for those agents that refuse to change with the times, I don't think it has anything to do with age. I have a 65 year old agent that Tweets. I have an older agent that blogs. 75% of our agents are on Trulia voices, FAcebook, and LinkedIN. 75% of them have all taken my class on using agent Metrics for market statistics. And ALL of them (yes all of them) use Google Reader for their information. I don't care WHAT age you are, but that's tech at it's best. (BTW... I hope you don't put your listings in with scathing age-discrimination like that)

We all know how agents treat their brokers. On top of that, force every agent who works for you to get a smart phone. Watch how your agent population drops down from about 100 to 5. 2000 square feet?? Coffee?? Front desk agent with a HEADSET??? You're crazy. In 25 years maybe, but not a chance today. 20 somethings are avoiding this business like it's the plague.

Umm... ok. Every one of our front desk folks has a headset (is this revolutionary?), 98% have some version of smart phone, we have a Starbucks machine in our offices (this increases productivity... it's scientifically proven!) and once again I don't think that age has anything to do with anything.

SO... for anyone else reading the comments, this "Dream office" that I have put together is doable. It's outside the box, but there's not one thing in here you cannot do for your office. And unlike Nick, I don't care what age you are or where you come from... if you are willing to try and embrace change, (as we all did in November) you can work in my office any time.

Matt

Careful you're not creating an office with more overhead than the one you just left...

WOW! What a concept! One stop shopping and an education too!! Sign me up..love the environment..great way to cut some costs once it is started up! Great article!

Matt, you are 20 years too late with the article. I sort of agree with Nick Ruta with a different take.

Realtors are up against the idea of their very relevance to today's real estate marketplace. Having an "office of the future" is extremely boring idea to me. It may have sound exciting in 1990, but not now.

I DON'T want to go to ANY office, period, thank you. Changing my son's diaper is infinitely more satisfying, long-term return on emotional investment, than asking short-term and long-term needs of any clients.

The "office of the future" is online. I will take Listingbook.com, bidselect.com, and showingdesk.com, etc., any day.

I am not sure how long the MLS monopoly will last. While it does, a real estate model needs to evolve where seller agents get paid to list houses, and buyer agents get paid to show houses. Heck, I would split that showing fee with the seller so that I don't even have to drive. How GREEN is that for the real futurist out there?

I'd rather help the buyer, buy the right house, based on my knowledge of the market and my negotiating skills. I am not interested in being a free worker-bee to a broker, or being a chauffeur for my buyers.

Lee

BankFreeInvesting.com

Lee Ali is the author of "Crowdfunding: The Solution to Eliminate Booms and Busts in Real Estate Forever!”

Interesting post and reply's. This might work in the future for some. Each state is different with laws and regulations. Long time before it would ever happen in Arizona. I'm not sure the baby boomers would like this concept.

I felt myself relaxing just imagining working in such an office.

OK, sounds like you have a lot of bases covered!

But about that traffic thing...

I can't really see myself going in there with any regularity, even if it was all the things you say. What would make me go there? What would make me stay and ask questions, as a casual foot-traffic shopper?

I'll tell you what would make me go there and stay...

Equity Advisers.

Just as people fret over their other assets, so do home owners fret about what specifically to do to their homes to enhance equity. So, let's say you have a Curb Appeal Center there, you know, connecting to that cafe. I'm thinking a water feature, soothing plants, rock seating, in an atrium-like setting. It's really something out of a magazine layout. And there are people available with the skills and know-How to advise you on a lot more than just what's blooming. I am talking about a new thing entirely. People who are not selling plants, specifically, but ideas, to enhance your equity in the long term. And maybe a design center, too, where Equity Advisers can help advise people on making forward-thinking changes they can make for the interior of their homes.

Of course, I see the relation between people who want to make changes for their home in the interest of equiity all the time. I am a Curb Appeal Consultant and a Real Estate Stager...basically, I am an equity advisor.

I see how HGTV blends real estate + home improvement concepts. I think this is a real boon for any cutting edge real estate company to capitalize on this hugely successful marriage of two very related industries.

Equity enhancement holds a MYSTIQUE for homeowners, and there is no one-stop advice outlet for them to readily access. In providing this advisory service at a physical LOCATION, you will be bringing them naturally and comfortably into your new real estate world, allowing for relationships, sales leads, and loyalties to form in a no-pressure setting thru casual interaction.

When they are ready to sell, they don't need to call the neighbor who's sister-in-law is an agent. They just do what they have already done so many pleasurable times before, they go to the location they are familiar and comfortable with, having received competent advice in the past about increasing the possible ROI from their biggest asset.

It seems so obvious, but no one is doing it. Even the big box stores haven't figured out people who are in their stores are lacking the one thing the buyers are truly seeking... REAL HELP MAKING HOME IMPROVEMENT CHOICES IN THE INTEREST OF PRESERVING THEIR EQUITY.

That will not only generate your needed traffic, but very specific traffic from contientious homeowners that will make for more sellable properties for the agents themselves to market.

So, putting a patio and garden center, a quality paint store, and furniture and decor store, a flooring store all with this central hub of Real Estate-based Companies becomes a Home Mall, if you will. And don't forget to put your Equity Advisors and your Realtors together in the middle of all that action.

As a former paint color consultant, I'd get to work each morning and have three customers waiting for me and I'd continue to take care of three customers at a time, all day, every day. Taking a lunch was a joke. We didn't even advertise we had color consulting staff of three. Word just got around. Imagine what could happen if it was widely known?

And what if you paid them salary, and the advice was a service your agency provided.

It would be off the chart.

~Michelle

www.curbappealfordummies.com

OK, I gotta agree with Nick and Lee, although I am in the 50+ group, our team is still not acting my age :)

I see the future as a smaller footprint office with agents working out of their homes, where they would rather be. I'm with a company like that now and my overhead to my broker, who by the way is an incredibly sharp guy that I go to often with questions about Real Estate as well as running our business is amazingly low. That's what I'm looking for. It's how I treat my clients, one on one that matters, not the glitz of my office. With the Starbucks concept on the downhill slide, it seems like the public is not wanting to stop in and linger much. They want what they want and then move on.

Maybe at the right location this would work, but I see people wanting to Webinar more and drop in for lectures less.

Way to think out of the box though. There is appeal in the idea. Create this feel virtually, and I believe you've got a hit.

Marianne

www.bandyhomes.com

You so get it. The tough thing about this biz is it's aging and traditionally because of the pay structure folks got in as a second career hence middle age. How does this industry atract a younger crowd that can take the financial plunge. Not having to count on the week to week paycheck out of the gate.

The learning curve is getting larger all the time. I think age has tons to do with it. I have ear friends in real estate that are stressed with all the changes from electronic lockboxes to smart phones, texting, forget socialnetworking, just having to enhance digital photos and put links in the right places. If you never had to do simply those things and that's just entry level. Forget balancing that with all the other technology along with keeping up with the ever changing laws, lending changes, short sales and contract changes. Again the learning curve is huge. It's not the stay at home mom that wants to make some extra money job of the 60's anymore.

Go get em!!!!

Sounds like my kind of place Matthew!

Very cool concept. I think the idea is really great, but I also think that a lot of agents are beginning to go the way of working out of their homes, and becoming their own brokerage. I rarely go into the office, except to interact and get some answers to some new dilemnas.

I think all generations will enjoy the coffee house/ internet spot..... I think the agent with the headset is a dead idea, at least where we are, there are not many call ins.... It's internet or Open Houses.

Thanks for all of the great out of the box ideas, though. certainly more fun than the traditional office!

Dagny

I feel way behind, though. I am going to check out Google Reader right now.

I agree with Kim. There certainly is a huge learning curve with all of this tech stuff coming out daily. It is tough to stay ahead of the curve, and certainly not for someone who is part-timing it.

Off to look at Google Reader!

Dagny

What a great fantasy - don't forget that not everyone can get instant technology access - lots of us still live in the middle of nowhere...(horse & cow country)

I truly believe this just might be the way real estate works in the future. I already see offices, growing smaller because agents are now working from home, not needing the office space except for conference rooms. Great concept

I loved reading your post and am happy to work at an organic agency that is Client Centric. Weichert Lead Network sounds a lot like the office you describe but the calls are then routed to agents.

I am going to push for a removal of the agent cubbies and push for the addition of the cappucino maker.

Our main problem is we need some money to implement this so off to sell some houses!

Katharine

All other comments aside, what kind of dogs?

I can smell the coffee!

I think I died and went to heaven! I left a big box office as you first described to start my own company based on what you described next. Not the easiest proposition in this market with lots of nay-sayers who have done it another way for a VERY long time....Great post!!!

Matt,

Nice post, it seems thats this has been the way the past year and going forward the only way to survive and thrive.

I agree with Marianne, and that's who I see the market going, small offices and most agents working out of their home. A wonderful as that office looks, who is paying for it? I'm almost 100% commission and I see about 50% of it going to that office above. The younger generation could care less about an office. They are wired and they don't care where they meet you, as long as it's convienent, mostly on the road somewhere. If this is what works for you, more power to you. I just think the industry is going in the opposite direction.

Great innovative ideas and an interesting read! Thank you for sharing! There is one small agency that recently started in San Diego with another hub opening up soon in San Francisco that has already integrated some of the items that you have mentioned. They also have a versatile platform to allow for growth into the other areas you have addressed. Check out - www.bugrealty.com

Something has to be done to the existing real estate office or it will completely disappear. After the MLS went online and Realtor .com appeared clients felt empowered enough to forgo the agent search until the very last minute. Offices are now basically empty caverns with agents only dropping in to run copies, pick-up their mail, or grab some paperwork. Agents are either at home or in their cars. With more offices needing to downsize or close it would seem more than the right time to make a change.

My goodness a real estate business model that actually thinks of the consumer... bravo!

left the big commercial firm after 20 years 5 years ago Saw it coming commercial real estate will have the same challenges faced by our residential brothers and sisters with clients becoming more empowered by their access to the commercial property marketplace through more and more resources on the web.

Thanks (STILL!) for the continued great comments...

I would suggest that those of you that are fearing the 100% commissions and such that you might want to talk to a couple of companies that have really survived this well.

I understand that each area is different and agents are different across the board, but having been in recruiting, I know that MOST (not all... ) agents are concerned mainly with their income, their clients, and their reputation... (and maybe their income again!)

So, here's an idea...

Take that money that you would spend in super duper collateral materials, billboards, private offices, and yes... (it's going to hurt)... but unnecessary print advertising and do the following:

Get a GREAT website that will help generate business (check out this link to see some of the best http://theyoufactor.com/?p=97)
Invest in a couple of local citizen journalists to teach your agents how to write great copy
Invest in some great Email marketing programs like MailChimp
Hire a couple of Temps or Interns to take their content and send it out to their clients
Use the copy that they write to power your company's blog to engage your client
Align yourself with THE BEST financial planners, attny's, mortgage brokers, and inspectors to teach your agents advanced education
Align yourself with the local school to teach your agents about client psycology
Open your doors to the consumers and answer ALL of their questions
Give the agents a 5% bump in commission if they will work virtually
Invest in something like homefeedback.com where it will automatically send out feedback requests
Etc. etc. etc.

Total price tag to that above = +/- 50-100K

Are your competitors doing it? probably not

Recruiting "Value" 100%

THAT's thinking out of the box... agree or disagree that's fine. But do something... don't just whine about it. (And read Steve Murray's post "Small Ball" and change the word AGENT to BROKER)

that was fantastic Matt. It reminds me of Disney's Carousel of Progress... :-)

Wow, very interesting view points have been provoked here. I do think we are heading more toward the virtual office than anything else, but personally I still find myself most productive keeping an office location. That's coming from an agent under 30. To each his own.

Wow, a lot of great dialog here. I'll have to come back and read all the comments. This is a remarkable thread. I believe it is one of the most successful blogs I have seen on AR. Way to go Matt!

MAR

Matt,

Wonderful post.

Change has come for all of us. Irrespective of your industry. Those real estate brokers who will not adapt in these economic time will not survive. Even those that survive will be unable to return to the "golden days" of yester-years. This is not suggesting that we are not going to have many more golden years......................We will. It will be different (obviously). Technology will have greater roles to play in real estate transactions. Take it or leave it! ....... or adapt it to suit you.

The choice is yours.

There are many technologies out there. Many (see post by Sean Goerss) have created businesses servicing the real estate professionals with new tools.

For those who still want to do it "their own way" many companies offer these tools. If you have logged on to this site and you are reading this, then you can use these new tools in you business. Click Here to see one example of such a company/product that can be adapted to your needs (the demo runs for about 40 minutes).

Don.

Just a thought,.....How is this for a office....we have the technology to make an office not exist and, that would free up an agent from all that faxing, and picking and opening their mail and so forth.

Eventually eliminate office entirely within 17 month period to eliminate rent, electricity, insurance, maintenance ,cleaning, all thngs associated with traditional brick and mortar /virtual office services per agent of email,voicemail,fax line from online service provider/use winforms online whenever possible with electronic signature/broker override agent contract with clause editor feature to assure DRE compliance so cut back on unnecessary management supervision/use CAR legal hotline whenver possible to eliminate any need of additional management/ eliminate receptionist by forwarding calls to overseas workforce, contract a call center in Phillipines to deal with customer service issues, outsource tech support to India/utilize online auotresponder to respond back to business inquiries/use TOP PRODUCER to its FULL capabilities ( agents need that Happy Birthday congrats email!) have office meeting by teleconference or online webinar. Use virtual escrow, closing services to further eliminate taking from peoples time that they need to do their work.....Can the average agent do better than the clause editor when the data is imput to CE? Do agents use the clause editor? What would the cost per transaction sale? People buy houses. Soylent Green is people= Soylent Real estate! Thank you for your comments in advance.

Matthew,

Thanks for the ideas! As a commercial broker my Industry Partners (www.ConsultPete.com/ Industry Partners) and I will explore these synergistic ideas. My commercial brokerage, CommercialMasterminds.com is the first internet based, full service commercial brokerage and can easily adapt to such a setting! Awesome ideas!!

Pete Chrzaszcz "Shunz"

Commercial MasterMinds

Nicolas Cleans.O.C!

34111 La Serena Dr

Dana Point Ca 92629

www.servicescleans.com/

Dear Matt:

I totally agree. The future of Real Estate is more virtual than having a full time office which agents don't need. Trim the fat and cut the exessive overhead cost that is being incurred by agencies these days.

Reinvent your self and be honest with your customers they will be loyal for life. I still don't see as major of a problem yet for me in New York since I diversified and is able to handle one or more markets. Real Estate in the past few years was extremely over priced and now it is a bit more realistic as to where it should be. Stop just trying to make a sale and advise your clients what you think is best. Don't give legal or mortgage advice it will come to bite you in the end.

Educate your self as to your area of expertise and use it to the best of your abilities. Social networking may help as well as opposed to this one stop shop that people are trying to sell you is the wave of the future. It is that way now and its not working. If you are going to do a one stop shop do not fill it with only people in the industry ie. Mortgage Brokers.. etc because if the industry fails everyone fails. Try something Automotive, Concierge, Travel and I don't know anything but the same.

We are doing it here in NY and we are doing very well. Get back to the basics where honesty, hardwork and creatvity worked and you will reap the benefits. When life give you lemons. Make lemonade. Good Luck.

Matt,

Great post- the companies that are not moving in this direction are bleeding a slow death. This is a great business, but many of the larger companies are run by Boomers that have missed the sessions on technology and virtual at NAR. The agents and companies of the future will be more consumer-centric on all levels. Thanks for sharing your thoughts on this. I have passed it along to the boomers that run my company...again.

Look like the way of the future.

Matthew, not much I can say that everyone else hasn't. Good post. You have my mind going too fast this early in the morning. I haven't even finished my java yet. Thank you.

It sounds like there are enough of us that find this environment ideal. Maybe we should create a master mind group with a mission of making this idea a reality in our markets. With the right people involved, anything can happen.

Sounds great Matthew, but it may take another generation to get there. With the industry currently controlled by my middle-aged tech-challenged compadres, it would be a stretch. I am constantly fustrated with being unable to reach other agents, agents that respond to emails three days later, and still rely on fax machines. The current problem for the tech-savvy agent is that he doesn't have enough other agents to interact with. At 58 years old, I just hope I can live to see your vision fulfilled!

10 years ago, a company opened an office similar to what you described in San Jose CA, as you drove buy you could see inside, a bunch of computer kiosk's, where the buyer was invited to search for property on their own, then be able to consult with an agent about questions. I don't think there doors were open for 6 months. I have often wondered if they were just way ahead of their time....

Hi Matt;

What a refreshing idea! Real Estate Companies get stuck in the same, tiring operation. Most of us move about doing the same things we have always done. No innovation, no imagination, just the tried and true method of conducting business. It takes young, fresh minds to make changes. Basically, what does one have to lose by stepping up the the bat with new idea's? If you fail, you can always fall back on the tried and true version that has worked before, albeit "boring". One thing is for sure, we all need more training in the field of technology!

Hi Matt!

This is otal genius, dude! Awesome thinking outside the box! Just what this industry needs.

what you've described here is a real estate mall!!! And who among us doesn't recognize the exteme psychological marketing forces behind the mall concept? This environment also allows buyers to cruise properties and just absorb the vibe unfettered by agent hovercraft until they're ready to discuss their needs and gather more information.

I love the refreshment/entertainment features. And the property info pulling up data instantly. A pay as you go food court is definitely a plus.

The only thing I just wouldn't do is the cars. HUGE, HUGE liability factor, dude. The last thing we need is more paperwork! But lack of auto fleet wouldn't keep this concept from succeeding at all.

You've hit many nerves and I would run, not walk to your attorney's and accountants office and set this up immediately so you can start the ball rolling. Realty World, party on, excellent!!!!!

Call me to discuss opportnities in Philly. 215-694-4192.

Cheers,and Happy St. Patty's Day. Comp reponsibly.

Matthew, to me your post #122 is IT. You might want to turn it into a main post. Thanks for sharing the ideas.

Cool concept Matt...I would imagine that we'll begin seeing this type of concept become the norm in 5-10 years...

Great post, great vision Matt...we really are being challenged to RETHINK how things are done and reinvent on a deep level. Work smarter not harder. Why not add the tool that helps the brokerage as a whole average shorter days on the market for their listings? In that vision, there is a home stager inside the service team.

Matt,

Congrats on creativity. If this isn't the office of the future, it should be. This could take all the fun out of the old 10,000 square foot mostly empty office. We are looking for a new location and have been brian storming - hope you don't mind seeing some of your ideas put into action here in the high country.

Once again great Post.

Matt,

Hard times spawn great thinking and you're proof of that! Your concept seems to be a hybrid of the "virtual office" meets "coffee shop real estate office" concepts talked about at conventions and on the web for a few years now. In Phoenix a REMAX office tried the concept of a hi-tech coffee shop front office complete with expresso, flat screens, hostesses, computer terminals for clients etc. It's a a very appealing concept but I think you have to pare the physical space requirements down to a minimum. Remember, now you're paying for high-visibility retail space not office space. After running a traditional mortar and bricks real estate company for 15 years I can affirm your concept is appealing on many levels. Plus, I like the idea of mutlple profit centers. You also solve a huge problem of finding customers. You let them find YOU by being a comfortable, available and useful resource.

Let me know when you franchise this idea, I'd be a buyer!

Sounds like out of a Sci-Fi movie, but in fact can be done with today's technology... just need the mindset that makes it okay, and of course, the funds to implement it... nice if all agents used handhelds and digital calendars... beats not getting a call back for three days from a listing agent...

Great vision, Matt. Smarter not Harder. It's funny, though. This will appeal to a certain type of realtor...the one who wants a career handed to them. I am very tech-savvy but I still believe "old-fashioned" hard work will succed in the end. I see the bulk of agents in my community rebelling against any amount of additional labor to kick-start their businesses...even in these troubling times.

I am anxious to see how this concept grows.

I too have been working on a very similar concept. I look forward to seeing the traditional ways of doing things become eliminated and the customer come first.

Matt, think it and it will happen. A few tweaks and this is possible.

Brilliant Matt! this was your BEST blog post ever!

I've already sent it on to the "Powers that Be" at ReMax Olson & Associates.

Honestly...this is a microscoptic preview of what the future will hold for Realtors and Agencies alike.

Keep posting...I want to see more of what you vision in that crystal ball of yours!

Carol...your oldest fan...and I do mean OLD!

This was a good post, and lots of good discussion. I just wanted to say that I love the concept of a solar powered billboard! Is that already happening?

Picture This... A red painted door, followed by hardwood floors leading to the warm glow of a fireplace. You smell an apple pie baking in the oven and the aroma of cappuccinos brewing in the kitchen. You are surrounded by strong, productive, creative Agents who love to share what they know with others. Sound like a happy place to work? It is! Real Estate Cafe ~ Where Something Good is Always Brewing!

Aloha

Great idea! Sort of what ING is doing here in Waikiki---big, inviting, non-threatening space, coffee and donut atmosphere---stroll by, walk inside, munch a pig-in-a-blanket and sign-up for a 20 year savings program.

It would be great if a person could walk into a space like that and sit down in front of a computer to see for themselves what real estate is available in that area, square footage, price, amenities, etc. Chaufering clients around is so old (and so expensive). Prospects don't need that, nor do they need us realtors telling them what they want; they should know that on their own, right?. But they definitely need help navigating the purchase contract which used to be 2 pages, but now is 20 and growing... They also need us to point them to other professionals, such as lawyers, accountants, home inspectors, loan officers, decorators and landscapers (if they're selling), and so forth ad infinitum.

The days of the "hovercraft agent" are over. The dawning of the Age of the Real Estate Facilitator is just beginning. And this model office you propose is a step forward. Nodoubtaboutit

MAR

Matthew, your vision of the ofice of the future incorporporates community involvement and permission based marketing.

Matthew,

AMAZING !!!!! Ok tell us the truth... you stole the Back to the Future car and as soon as you got back you wrote this blog !!!

Great mind and great imagination of what should be today's real estate office!!!!!

Great Vision Matthew, that picture of a cubicle office with fluorescent lighting looks so obsolete; I worked in an IBM sales office in the 70's that looked and worked the same as many real estate offices in 2009.

Let's build a smarter real estate brokerage!

Combined ideas

Michelle & Lee seem to have the right idea and by combining the two you may have a winning combination

By using Lee's cocncep that there should be a separation of buyer agents and seller agents each working for their cient with no conflict.

Using Michelle's concept, every seller agent should be a team of two, one getting the listing, the other providing advice and help in staging the home to maximize it selling price.

Buyer agents have new technology at thier fingertips to find and view homes quickly...even view live open house presentations online without having to drive around showing houses until their buyers find one they really like, thus narrowing the choices and reducing the driving.

Matthew's office concept may work best if the office specialized in buyers agents or sellers agents rather than both, then there are no conflicts of interest and it would instill greater trust by the consumer. The broker could even have two separate offices under different names, just don't make it obvious to the consumer.

Now THAT'S and office I would invest in!

...it's good to banter ideas around...that's how you create great ones!

Great post. But i think there needs to be more virtuality to the office of the future. One or two conference rooms, and /or smaller meeting spaces. have most associates doing the work virtually, only using the office to meet and greet clients ; file their paperwork , hold ed seminars for potential clients on a multitude of topics.

Given today's technology - a wireless laptop, cell phone - one can work from any where especilly if you have a "base " providing receptionist and other office services.

We've been a virutal company since 1990 are now almost 100% paperless

couldn't imagine doing business any other way.

MAR

I'm nr. 160 and happy about it. I plan on revisiting as nr. 200.

It's nice to see that a few people don't think I'm loony toons. Ideas always need to be challenged and this idea, while grand and dreamy, isn't a future reality in my eyes. The office of the future will be primarly a virtual environment, small, and have only the tools necessary for agents on the go or the occasionally client meeting and final settlement.

A real estate office isn't like a McDonalds, where consumers HAVE to go to eat. With real estate, consumers go ONLINE first when they are hungry for homes...they research stats, pull up pictures....they don't walk into offices expecting services anymore or coffee. The eat it up all online and then, when THEY are ready, they'll find someone to call to go see houses. Hopefully you can get them to come to the office at that point, but even then it's a struggle.

I recently had a client who found all the homes he was interested in, used his GPS in his car, went to all 6 homes, then called me back and said to keep sending him more.....none of the homes he saw impressed him.

The man got into his car...used his GPS...went to the homes....on his own. I did NOTHING other than help him with his search. Just driving by the homes was all he needed to see to make up his mind. That fact and this story is a true testament of where this business is ultimately going.

Yes, there are exceptions to everything, and your 1.9 billion dollar empire may be just that. Some form of real estate office utopia where everyone uses a smart phone and checks their Facebook account every 20 minutes. Bravo. Whatever your secret sauce is, it must be good.

While your office sits on a mountain, above the rest, I do believe age indeed plays a factor in where this business is going. While you may have found the fountain of youth for your agents, the sad reality is MANY older agents absolutely do not embrace change, especially with the steam rolling technology coming at them from all sides.

Anytime there's some new techno service, tool, or website that could make their lives more interesting, productive, or have any sort of impact on their business for the better....guess who the complainers are? Not the 20 and 30 somethings or the rare group of 'experienced' agents who embrace it.....it's ALWAYS the 40, 50, 60+ crowd of people believing NEWSPAPERS are going to make a comeback. ALWAYS.

The generational gap in this industry is staggering and the single biggest challenge EVERY broker should be figuring out is how to get the young, tech savvy individual into this business. Because, in our area at least, I'm not seeing it. 20 somethings have too much debt from school or credit cards, 30 somethings need the pay-check they've been used to in the corporate world. Without some form of financial security for the younger generation, a generation of people we NEED in this business, getting into this career is no joke. If a spouse can't support them for 6 months to 2 years, or they don't have cash in the bank, they are out the door fast.

I'm gonna be 85 some day...and when the XBOX 8700 is released, I'll be ripping the controller from my grand kids hands. This current older generation hates change...it's going to be us, the younger ones, the up and coming group of kids who'll be shaping this world, this business, and future real estate companies.

Other industries hopefully are taking note of this fact...because I know, people my age and younger, we'll all riot in our wheelchairs and rockers if our nursing homes don't have Internet access.

Matthew,

Great post and great vision. I just wanted to comment to say that here in sunny Charleston, SC we have been doing 90% of that since mid-2007!! We opened what we call The Real Estate Studio on historic King St and it is a consumer-centric set-up rather than your traditional real estate office. We have a 2500 sq ft space, only 500 of which is the 'office' part with 4 desks for our rotating Virtual Agents. Nearly 1700 sq ft of it is for the potential buyer or seller. We have large flat screen TV's, couches, a 'tech desk' with 3 Mac computers for the clients use, Wi-Fi, fresh lemonade and coffee, a concierge to assist people with booking things in Charleston, Videos of most of our properties etc...We hold community events here in the evenings, for both profit and non-profit enterprises and showcase local Charleston artists. I could go on and on but check it out for yourself at www.dunesdowntown.com. It has really been a bright spot for us these past two years.

I love your ideas of going greener - something for us to strive for in the future!!

Again, Nick i think you're way off track but I appreciate your sharing. I know plenty of agents that refuse change no matter the age.

So riddle me this Batman? WHY do people go to Starbucks? Because they have branded themself as the 3rd place in our lives. That's what this model has done. And no tech-widget-GPS enbable stuff is ever going to take away from the personal touch that a well educated advisor can provide.

I'd be suprised if that buyer with the GPS didn't nickel and dime your commission... becuase that's the type of buyer I assume doesn't really see value in a Realtor.

Matt

Again, there are exceptions to everything. But when it comes to adapting to technology, new ways to market, new gadgets, the next big real estate website social networking toy....it's the 'stuck in their ways' dinosaurs which cry the loudest in this career.

As for why do people go to Starbucks? Demographics, habit, 12 stores in a mile radius, and of course lots of play money to spend. You might as well throw in people being lazy to make their own too. I could take 2 minutes every night, set my coffee machine to start brewing at 8am, and it's ready when I leave at 9am. Do I? Ehh, sometimes...but I'll tell ya, there's no 7 dollar muffin and coffee morning for me regardless. If had money to blow everyday, sure, maybe that model would entice me...but that's definitely not the case for myself or most anymore. You could probably make an argument that the gotta have it "Starbucks" mentality is parallel to exactly why this country is in the fix it is. Buying Starbucks coffee has more of an upper class image stuck to it than most would admit.

And, if you've been paying attention to Starbucks you know they've been restructuring BIG time. Their business model had to change, adapt, or die in this economy. They've lowered prices, canned tons of people, closed stores, etc. It looks like they are doing the adapting, but at what future cost? There's a lot of shaky news on them lately and with McDonalds and others catering to the newly birthed American cheapskates, they have to buckle.

I doubt they are going anywhere, but with 600+ stores closed, 12000+ jobs lost, they are waking up to reality. Let's just hope the rest of the world does too.

Lastly, the personal touch you mention, I absolutely agree, and maybe your model will capture that with today's and future consumer. It's going to be a struggle in my opinion, especially as more and more information comes online, readily available for all to see, with literally no need to go into an office. We'll see....because you're right again, Mr. GPS never returned any calls, any emails, or any other attempts at communications. The good news is, I never wasted my time outside of those 30 second phone calls and emails.

I love it!! Let's get it started!

Very possible in the near future. I've already started seeing advanced models like this popping up here in North Carolina.

Matt…you suggested the following:

"Take that money that you would spend in super duper collateral materials, billboards, private offices, and yes... (it's going to hurt)... but unnecessary print advertising and do the following:..."

Yes, I agree, a great website is necessary and to insure that you have everything that consumers are looking for when they go through their homes searches online. You mention engaging the consumer with material to give the perception that you are a resource for consumers to keep coming back for more (another important point), BUT...you can have the best website in the world, but unless you either have a tom of money or spend all of your valuable time sitting in front of a computer writing blogs and staying in contact with 2,000 of your closes friends on facebook so you can reach that top 8 positions in a Google search day in & day out...no one is going to see it.

When is the real estate industry going to catch on to what every other industry has proven for years? Sorry to say but print still drives the internet. What comes to mind when you hear or see the word Geico? How about Afflac? What's the 1st soup that comes to mind when you're in the grocery store and you need a can for your family? You're probably saying "Mmm-mmm good" to yourself as you read this! Major corporations have already learned through research that it makes a HUGE difference by being first in the minds of consumers, that's why they spend millions of dollars through integrated advertising, TV, radio, billboards, internet, smart phones, etc.

How many print magazines do you all have coming into your mailbox every week? (L.L. Bean, Lane Bryant, Lands End, Victoria Secrets, etc etc etc) Why do you think they spend so much money printing magazines and sending them throughout North America? because they know that people still like to look through magazines. And what do they do after they read them? They go online to look at more or to order!

COME ON PEOPLE...why are you trying to reinvent the wheel? You don't have to have the budget of a major corporation to brand yourself nationally, you only need to be known in your own local market.

The point of print advertising is for branding and name recognition, and to convince consumers to type in your website address directly (rather than trying to rely on them finding you in an organic web search). Give them a good reason to go there, and be sure that you have a well designed and functional website to give them what they want, a way t share it with others, and engage them to return again.

The main problem with print is that the majority of the real estate agents simply don't put enough time and thought into their advertising. it's something that just takes up too much of their valuable time and settle for whatever they can come up with at the last minute that it's due. They haven't a CLUE how to effectively "speak to the consumer". Most ads are all about the agent and not about the consumer, along with a list of homes and ad copy that's mostly pointless features with no mention of benefits to the consumer.

I challenge you to take the time to pick up some of the magazines lying around your house and look at the ads. With most ads you can easily tell WHO their target audience is and what their product can do for you. There is often an image used to invoke emotion and you rarely even see an image of the product itself, unless a consumer is shown using it. A good agent could sell a home without even showing the picture of the home in their ad simply by showing a couple kids and a dog playing in a back yard with a big headline "I've only 3 reasons we moved to this neighborhood."

Are we caching on here? You have to "connect" with the consumer. Otherwise, you're just another home listed in a magazine..or just another agent showing their one home in a magazine.

Agents also try to be everything to everyone and in doing so, there is no differentiation from one agent and another. Everyone is an expert at new home buyers, empty nesters, investments, senior, relocations, foreclosures, you name it...and they specialize in homes throughout North America (OK, so that may be stretching it a bit but I think you catch my drift). By trying to be everything to everyone, they end up reaching no one.

Print advertising is not going away quite yet...it's just an expense that agents don't want to make, which is just as well because they would simply waste their money by looking at it as a necessary evil rather than taking advantage of it by hiring an expert to show them how to do it right.

I have to say that there ARE a minority of agents out there who have not only caught on to how to market themselves effectively (and quite successfully), they have even set themselves up with a exit strategy for when they decide to retire. I'll bet you haven't thought THAT far down the line yet, have you? Remember...you're in business for yourself. You need to create a plan, invest in yourself, and think about an exit strategy just like any business.

Matt's ideas are certainly attractive, but you don't have to create a new business model or a new "coffee-house" approach to attracting consumers. Watch what successful business are doing around you every day and mimic their approach to success. Consumers are becoming more elusive. They don't WANT to speak to you (no offense), which is why you see so many car shoppers on the lot on Sundays. YOU have to speak the THEM in an unobtrusive way and encourage them to WANT to come to you. You can do that more effectively and economically in print than any other medium...if you do it right!

MAR

Hey Matt,

Interesting artcile - Makes me wonder how much time you have actually spent with "Third Place" concept stores.

I don't think Nick Ruta is getting right - he is going over the top on his end, but I think you may be too.

The third place concept requires one crucial ingredient - people's deisre to go there. If you can't get that, you can build your office all day long, and you sit there and sweep the dust off the floors.
Anyone who say "built it and they will come" needs to seriously think about the dot com boom, that was the mentality - and guess what, proven fact - it didn't work like that.

I worked in the software industry in a little town called Seattle, during the dot com era - I have built software solutions for what you propose and I am quite familiar wiht the Cisco system and well as a couple of solutions providers who does similar things - it's all in the call center 101.

Your ideas are good, no doubt, a client centric service would be ideal, but implementation is the crux. And I don't know that the glossy office is going to do it for you. However, I would say, there are some other ideas that have been brought up here, that really makes sense too - including some of Nicks thoughts - although he does seem to have an issue with anyone past 22.

What I would like to see, might be thoughts on implementation, say on a team level, start with the service side of things, if that is working and bringing in business, mod your office to suit it better.
If the office gets onboard and it all takes hold, then go think about building a different office to better suit it.
By going at it from the team level, you are sure to bring the team members onboard, that way you have the fundamentals working - it is vastly different from telling them how it has to be.

These are some thoughts for you - no need to love them... :-)
Oh, and I would a 40 something tech savvy agent

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CLEANS. NICOLAS. Especialing in Residential Cleaning & Commercial Janitorial & Maintenance Services

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