5 reasons for all real estate agents to start considering new careers.

I agree that there will be a lot of change in the real estate industry by 2020.  Your number one reason is my number one pet peeve.  I feel it is unfair real estate agents are still being charged handsomely for information we provide to the MLS system and others get to access it for free and utilize it not to use a real estate agent.  A happy medium needs to be reached on this accord.  One thing which has remained constant since I have been in real estate since 1988 is that change has remained a constant.

It's not just the tech-savvy generation deciding to go it alone.  I've noticed a few FSBO signs posted in baby boomers' yards.  You can now have your home listed on the MLS for a flat fee and handle the sale on your own.

I used to be a recruiter and when the internet took hold that was the end of that for the vast number of us who really hadn't established ourselves and were just dabbling in the lower end. I think what is going to happen is that the industry will be culled and only those who have been in the business for a while and built a strong base will survive. Recruiters are still used for the higher level positions, especially in the tech industry where there is a scarcity. The same in our business. In a sellers' market buyers are going to still need help to stand out from the crowd. The same for sellers in a buyers' market.

Change is inevitable. I'm not sure that the general public will like the changes after the fact. I can foresee a time when people with less money might find it difficult to afford their own agent and choose to go with whatever process is readily available to the masses while those with more money are able to afford their own real estate agent. Hope I'm wrong. 

#3 is scaling back and that 's not great for wreckless, get-rich-quickers.

Good luck and prosperity,

Laura

One needs to adapt and embrase change. 

Richard, you just threw a rock at the hornets' nest.  Somebody had to do it!  Thank you, you have caused us to pause and think!  That is a good thing--for all of us.  Automobiles and tractors brought on a change in the way we use horses, but it did not kill the horses.

We REALTORS® need to huddle, thinking it is forth and long, and go for the endzone.  I recall when all the Texas homebuilders decended on Nashville, Tennessee in the early 90's: the word was that they were bringing cheap labor, and the thought was our local builders would fold.  Not so, the quality builders excelled, the lesser builders dwindled, and the cowboys returned to Texas.  Several national builders have remained, but builders like Frank Batson, Phillips, Old South, etc. are stronger.  I saw the same thing with the national mortgage lenders who rolled into town.  Change is a part of growth, so let us grow as we change.  

When selling dust control products, I began telling customers "If I sell on price, I can lose your business on price.  I chose to sell on quality and service, and provide that quality and service.  Someone has to bring you a better quality and service for a better price to take your business from me."  Seldom did I lose a customer, but never on quality and service.  Nissan and Bridgestone continue with my former employer to this day because of quality and service.  My loses were when customers sold out, failed, or moved.  It worked in mortgage finance as well, and is what I strive to do in real estate now.

We have a challenge, but with quality and service we will prevail.  Prescription: more quality education, attitude, performance and marketing.  I agree with Richard Bazinet (#55) that having data and knowing how to utilize it is a big difference.  We may need to pay more attention to the MLS instuctors to maximize our data, and focus more on what our clients ask about.  Change is coming, and it behooves us to utilize the ActiveRain® pool of experienced pioneers to climb that next mountain.

Hi Richard,

Very thought provoking post. While many disagree and would like to argue it couldn't happen, or it won't happen, history has taught us what couldn't happen, or won't happen can and does happen. No one has a crystal ball. No matter how educated a person is, i.e., a physician, they still are not God. Can this be a winning argument? Probably not today. The subject is too raw and close to home. Minds that are jammed with can't, couldn't, and no ways aren't easy to convince. You laid down your argument for looking toward the future in real estate. How people react, what they say or do is their decision. I think we should always keep our options open because change is inevitable. Like Jane said, I was also in the recruiting business and the hand writing was on the wall. Like others, I said, it couldn't happen - it did. Like many other occupations, my job was outsourced.  People can scream, weep, say what they want... it won't change the outcome. All people want security but honestly is anyone safe in any career or job today? The INTERNET is like the virtual dragon, slaying the way of life we have known. Wages, careers, jobs, are becoming obsolete. I think NAR should be more supportive and protective of the people in our industry.  There are no guarantees.  I never say never, ever. I can not swim against the current but I can control what I do. Thanks for the great post. 

Richard,

I see a lot of truth in your post, I have to respectfully disagree that it would be as soon as 2020.

I can perhaps see a computerized Intermediation Advocate Program* with the blessing and certification of our government.

Yes, I do agree that there will be drastic changes, but it will take much longer to implement.

*Computerized Intermediation Advocate Program...taking the role of "referee" between the seller and bidders along with must do checklists for both the seller and winning bidder. Optional a la carte professional services and must use other professional services advised. Advanced easy to understand disclosure statements acknowledged by a hand scan and later with advanced technology acknowledged by a brain scan.

Well, some agents do need to think if this profession is a good feet for them, but those who will stay, adjust and learn will still be in demand. I don't believe the realtors will disappear any time soon.

Dear Revered Richard!
I learn so much from you all the time. Yes, the days of the guarded books with postage stamp size photos are long gone.

I posit that the intelligent Buyer will look at his/her hourly earnings and realize that it is more cost effective for a real estate professional to pull the deal together.

Those who are skilled will survive. You will always have a job skilled as you are!!!
Have a happy day -
Lynn

I think the MLS as we know it is going to disappear maybe even by 2020 as you predict.  The real estate sales field will continue to exist.

I agree changes are ahead but I also believe there will always be a need for Professional Real Estate Brokers. I mean, you can go into any drugstore and buy a bottle of hair dye for $10, so why do I spend 20x that to get my hair done by a licensed professional? Because I want the job done right the first time! I tried doing it myself once and it ended up costing much more to have it "re-done" by a professional to correct my mistakes.

Even though I have an advanced College degree, I would never compare my work to a surgeon - but a hairdresser? We can all color or cut are own hair, but should we?

Richard, I've seen a few posts point to this one...you got quite the discussions going.

Which is good, even if we don't agree with you, the debate is healthy and should ensure we all look forward to 2020 and prepare ourselves for whatever we expect in 2020.

If a business model doesnt change, but those around it did, yes I believe we will see its demise. You weren't quite specific on the direction but I dont know if you meant if the brokerage will die. Very vague there.

I read this as a result of your other post.  Few of my clients go to Realtor.com, most go to Trulia or Zillow, where the "Zestimates" will kill you every time.

Yesterday I killed a deal and released a buyer client because she found a FSBO, the Seller wouldn't pay my commission, and I called it "paying it forward".  My recommended attorney will save her $4,000.00

I think the idea is to constantly adapt and stay one step ahead of the game.  I work with a lot of techie first-time home buyers--they still like the hand-holding.  And yes, there will always be the arrogant FSBO that will think they know the market, overprice, etc.....

Maybe the bad agents will be winnowed out.  But once you're branded--you have a brand.

Hello Richard ... very interesting post! This is one of the main reason Vegas Bob never quit his construction career of 40 years. And why I am a RE investor, photographer, artist, author and more. We never really know when one type if career will fall by the wayside!

Sir Vegas Bob 

As long as people still like to sleep on beds at night, people will still want to buy and sell houses.  Currently, according to some real estate statistics in Texas I read the number of people selling FSBO is declining.  Of course this is anecdotal evidence, but my friend has tried selling her home FSBO and did not get one nibble, and has now begrudgingly listed with a Realtor.  All the technology in the world is not going to allow you to price your home too high.  As long as people are still people, they need some guidance. 

Richard, this is a tough one to follow, but the writing could be on the wall.