WHERE IS THE REAL ESTATE BUSINESS GOING?

By
Managing Real Estate Broker with CCI Real Estate

If we all just had a crystal ball that worked. Unfortunately, none of us are able to peek into the future to see what will happen next. We all just have to exist with what we know now. I think we all would agree that the last several years have been brutal, and it may not be much better for a little while. As such, we all all have to cope with less income.

The Internet, though, seems to be on its own warp speed. Most of us can barely keep up with all the new things that technology can now do. If this is what we know now, it seems that the real estate industry will evolve along those lines and will be headed in that direction. I can see that the real estate companies that have not already, will soon be going to the 100% commission models.

Agents will not be able to survive otherwise. Brokers will understand that the brick and mortar offices will sail into retirement as a way to keep the office overhead manageable. Most of us have already been using our virtual office- even if you haven’t realized it. We will become increasingly dependent on web sites, social media, and things like the new QR codes. If you are not using these new avenues of marketing, or worse, if you do not know what these are, you are already playing catch-up. Technology will work best if it helps you do something better, or faster, or both.

The successful real estate brokerage companies of the near future should be savvy enough that they understand the necessity of tech support for their agents- and lots of it. Brokerage support should now be focused on creative ways of marketing using the power of the virtual world. Helping agents set up, use, and integrate the pertinent types of available technology will be a key advantage to a brokerage company. Companies that offer these benefits will live on and prosper. Others probably won’t. And if what we know today has any bearing on the future, you might want to get on board. I can almost see the train leaving the station as we speak.

Comments (10)

Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Carolyn very well said.  Bricks and mortar are on the way out and though they won't necessarily be gone forever a big ostentatious office is a think of the past, IMO.

Jun 09, 2011 01:04 PM
Carolyn Campbell
CCI Real Estate - Bozeman, MT
Virtual R.E. Broker, Bozeman Montana

Thanks Cindy,

 

Change is hard, but things always get better....

Jun 09, 2011 01:07 PM
Michele Norris
Crystal Realty - Incline Village Nevada - Incline Village, NV
((( Buy or Sell, Call Michele ))) Lake Tahoe NV

Hi Carolyn,

Welcome to ActiveRain!I'm still fairly new, and have really struggled to get on board. Anyway, I like how you point out the importance of tech support from the Broker.

Jun 09, 2011 01:09 PM
Ken Cash
CB Select Real Estate at Lake Tahoe - 775.691.3855 - - Incline Village, NV
Lake Tahoe Lake Front Homes, Luxury Homes, Condomi

Agree!!!  I cannot even begin to keep up.  I am using QR but not sure why.  I did see a QR code on the back of a city bus in San Francisco yesterday.  It had to be 18"X18".  You could not miss it.  But I almost wrecked trying to take a picture.  No wreck and no picture.. 

Jun 09, 2011 01:24 PM
Carolyn Campbell
CCI Real Estate - Bozeman, MT
Virtual R.E. Broker, Bozeman Montana

Michele,

Some Brokers are out of touch with the new Internet wave. On top of that they don't have the business they are use too. In today's market you have to remember you are in business for yourself. 

 

Jun 09, 2011 02:32 PM
Carolyn Campbell
CCI Real Estate - Bozeman, MT
Virtual R.E. Broker, Bozeman Montana

Ken,

 

I love using QR codes on my Real Estate signs. I  do a video of the home. 

Jun 09, 2011 02:35 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Carolyn - Welcome to AR community, and you are right. Lately, I am noting many real estate brokers offering 100% commission, and real estate agents work out of their homes. Thanks for the blog.

Jun 09, 2011 02:59 PM
Mike Morrison
Will & Will Real Estate Brokers, The Woodlands, Texas - Houston, TX

How does the Broker benefit from a 100% agreement with an agent? Obviously from a monthly or annual flat fee paid by the agent to the broker. That business model is doomed to failure for the broker. The broker is forced to "sling it against the wall". In large metro areas, brokers are forced to hire agents in mass. Most agents are usually not vetted as well as they should be. Consequently, the broker is constantly answering complaints from state regulators & attorney's. Logistics just get in the way of this sort of model.

Jun 09, 2011 06:35 PM
Carolyn Campbell
CCI Real Estate - Bozeman, MT
Virtual R.E. Broker, Bozeman Montana

Mike,

I agree to some point in any business model where the broker is not supervising the agent adequately and selecting the competent agent to begin with. Real Estate is a profession. You have to watch out for the cheap verison business models, that are not providing the service an agent needs to be successful. Those have a good chance of making it to court.Times are changing and change is hard, but neccessary with this type of economy.

The days of Broker's making the high splits are mostly gone. The new economy just does not support that anymore. Broker's can make a good living with the 100% commission, especially if the office has 35 or more agents. The key here is the proper allocation of funds between the Broker and the agent. 

If the Broker wants to hire agents on mass, just to make that paticular model work for him, than he should not be in this business.

The quality's of making a Broker succeed are leadership, the ability to select the proper agent, and the ability to run a successful brokerage business.

Jun 10, 2011 03:13 AM
Mike Morrison
Will & Will Real Estate Brokers, The Woodlands, Texas - Houston, TX

Carolyn, that's what I'm trying to convey. The hire 35+ agents cuts the broker off from the agents. Let's say the broker charges a flat fee of $200 per yr. If I'm the broker you as agent will get $200 worth of my time. This business model lends itself to a train wreck. I'm not saying a 50/50 or 60/40 split. I understand times have changed. in fact, I see the franchise co.'s gone in 5 years.

There is just too much liability for the broker with little or no supervision. Prove me wrong but, let's say a lower flat fee could not get the same supervision as say a 90/10 or 80/20 split. The numbers won't work.

Jun 11, 2011 03:39 PM