Swanepoel Trends Report Opens Research for New 2011 Report, New Business Models at Top of List

Look at Allison James, have not penetrated PA yet but are elsewhere as a start, there are several smaller "virtual' start ups in our area of PA as well. As mentioned above i am also noticing more agents getting their brokers license and setting up smaller boutique companies. With the strength of the internet many consumers may no longer care about market share of a big company, but prefer a smaller company.

Stefan,

There have been few real changes in business models. You have a couple of MLM-style companies and a couple of fee-for-service / limited service models that have come along. These compete side-by-side with the national franchises, as well as the regional and small independents. 

Will virtual brokerages replace the brick and mortar brokerages? I think they will gain market share based on a lower cost to the consumer fee structure, but I doubt they will replace the local brick and mortar brokerages anytime soon.

It all comes down to service. 

One of the most interesting is RedFin--both from an agent compensation standpoint and how they work with the consumer. Their agents are paid a salary and a bonus based upon a post-closing client satisfaction survey rather than a commission based upon the sales price of the property. 

Looking forward to your report.

Tom

The need for large square footage offices is definitely over !!!!!!!!!!!! Agents from this point on will be much more virtual !!!!

Don't know if this means anything to you - you are probably way ahead of me on this.   I work at Keller -  I like the model - BUT the trend towards very large portals on the net might be a problem with the more agent-centric brokerages that have done well in the past.  I notice that brokerages that post massive Indexable IDX sites are elbowing out people like me. I'm constantly working my long-tail to keep up.   But its going to get harder and harder as time goes on. 

So although niche marketing and hyper local are current trends - how does that square with these big sites shoveling the same listing crap at people and taking up valuable virtual space in the process.  After all the consumer has to FIND the  niche agent and that might not be so simple as it was.

Matt was on the track with Diamond Dwellings, but launched with poor timing.  As much as I want to say me (with GarageHomesUSA.com), CarProperty.com is kicking my butt with a national model based on advertising and referrals. 

I see a lot of agent level folks here on AR that are drilling down to neighborhoods and seem to be doing quite well.

I am curious to see what's recommended here as I'm interested to see where the models are going next.

I have to agree with Lane, #4.  I don't see a lot of business model changes, but massive changes in the marketing spectrum.  Niche, highly targeted marketing has given me more leads that I would otherwise not had in this slow market this year.  

In Humboldt County, California, a lot of the smaller boutique brokerages are closing up, and the brokers/agents are moving to some of the bigger agencies.  Very interesting how things are different in different areas of the country!

Stefan, I look forward to reading the results of your study. What I've noticed, locally, is that although consumers are doing research on the internet, when they are ready to act they look for someone they know or someone referred by a friend.

Stefan, there is a missing comment (#5).  I would guess that someone thought it looked like a spam comment and reported it as a concern. 

Stefan,

I continue to marvel at the variety of business models that find and capture EXTREME success.  While technology has certainly created a new interface for RE business, it's still boils down to who can provide SERVICE.

I look forward to your findings,

Steve