Lately, there has been a lot of talk about the Critical Race Theory. While there are many thoughts regarding this theory, the purpose of this post is not to discuss that particular thought process but to take a look at what I call the Critical Real Estate Theory.
It is important to note that a "theory" is not a law. A theory is made up of various schools of thought regarding possible scenarios or a particular outcome. Therefore, a Critical Real Estate Theory is a school of thought regarding the cyclical real estate market.
What is really interesting is the fact that real estate as we know it today, is a relatively new field. Over my lifetime, I have witnessed the industry move from the days of mimeographed books of listings held in each office, to now up-to-the-minute real estate data in the palm of our hands.
Along with the technological advances, we have seen the advent of real estate teams, various types of brokerage models, and even the possibility of no-agent transactions.
My theory has to do with the fact that real estate is and always will be about people. With this in mind, new fandangled systems, technology, and fancy programs will never replace the human interaction that is needed in real estate. Therefore, a critical real estate theory is one that states, "real estate is the process of marketing, purchasing, selling, and managing real property transactions."
While great systems and technology will enable agents to do their jobs effectively, these can never replace the all-important aspect of human interaction. Being able to pick up the phone and reach an agent to discuss one's concerns, ideas, etc. should never become obsolete. Home-buying involves an emotional aspect. Due to this fact, people matter and always will.
So my theory is that no matter how far we advance, our field of real estate will always need to circle back to people, people, people. The Critial Real Estate Theory means those of us in this industry must not forget who we serve and to keep this point in the forefront of our minds.