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THE POSSIBLE FUTURE OF REAL ESTATE MARKETS

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Services for Real Estate Pros with Your BluePrint-To-Wealth

We've all heard the buzzwords. Consolidation. The Internet. One-stop shopping. The real estate industry, much like other industries, is going through a shake-out that will alter how we buy and sell homes in the future.

What are some of the trends that seem to be driving real changes in the industry?
 

Changing ownership. According to Real Trends, a magazine that looks at trends in the real estate industry, more than half of the owners of the top 350 firms nationwide are aged 55 and older. If they haven't started already, these owners will soon be looking for ways to cash out of their businesses and set up their retirement.


Franchises now control nearly a 44 percent market share. The biggest player on the scene is HFS, Inc., which owns ERA, Coldwell Banker and Century 21, three of the top four franchise brands in residential real estate. HFS has plenty of cash, and has actively crossed the country buying up independent brokerage companies, like the 7-office Kahn Realty in Chicago.


Does this mean when you go into your local Century 21 office you'll be dealing with a broker from HFS Inc.'s headquarters in Parsippany, NJ? No. Your agent is the same local agent you used to do business with. It's just that he or she now pays a percentage of the sales commission you pay to the owner of the franchise.

The biggest change is the shrinking number of players in the business. The number of real estate agents, like the number of mortgage brokers, is shrinking as roles are defined and services become unbundled. Ultimately, we may see the day where real estate agents are hired to do a particular part of a transaction, for a lot less money.


One-Stop Shopping. The Internet seems like the ultimate place for one-stop shopping. On the Web, you can purchase "for sale by owner" signage, shop and apply for a loan. You can find the house you want to buy, and through the listing broker, negotiate and deal. You can close electronically, and then find contractors to help you renovate, and movers to move you in.

Its not surprising to know that a larger number of Real Estate professionals are leaving the industry looking for other alternative sources of similar income..


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Comments (1)

Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
Preston yeah to those agents who are leaving. our industry is over saturated with agents who make less then mcdonalds workers. Maybe our reputation in this market will change around as well.
Feb 12, 2008 12:58 AM