The Future Of Real Estate Brokerage
What the heck is going on in the real estate brokerage industry?
There are all kinds of new brokerage concepts popping up around the country. You see transaction models, profit sharing models, and even a mixture of both. The future of real estate brokerage is changing fast!
The real estate industry is quickly changing. New brokerage concepts are popping up around the country. You see transactional models, profit and revenue sharing models, virtual offices, and all of this in the middle of a technological revolution. The future is here.
Agents and their clients understand their options. Broker pitches that appeal to big box brands are falling on deaf ears:
“BUT MY COMPANY NAME IS… AND WE HAVE BEEN AROUND FOR 99 YEARS… OUR MARKET SHARE IS AMAZING!”
Nobody cares, especially the consumer. Clients do not choose the brand, they choose the agent. Only 2% of clients choose their agent because of brand affiliation. So the brand has little to do with the transaction other than keep a certain percentage of the commission, right? It is the agent’s expertise and client relationship that creates a good experience, not the brand.
Are you ready for the change?
Everything has gone online. This has changed the consumer buying and selling habits. Previously a real estate brokerage controlled access to information about properties for sale. They used to be the consumer’s first stop.
The way real estate is bought and sold has changed dramatically in the last 15+ years. It was not long ago when consumers needed a real estate agent to obtain information on the buying and selling process.
In today’s world that information can easily be accessed by turning on your computer and logging onto Zillow, Trulia, Red Fin, Realtor.com, and other property search related websites.
In other words consumers used to visit the real estate brokerage first when inquiring about buying or selling a property. Now they log online.
It’s because of this that consumers used to think their local real estate office on the corner with the most signs in the neighborhood was the best option. The brand an agent was with used to matter to the consumer, hence the value the brokerage brought to the agent.
Not anymore! Real estate brokerages have lost their leverage.
Agents Needs Have Changed
Since everything is now done online in terms of information gathering from a consumer’s perspective, this has shifted the way agents do business.
Realtors need things today from their real estate brokerage that they didn’t 15 years ago. Most of the things Realtors want seem to centralize around marketing. We get hundreds of agents who read our content each month so we have a very good idea of what they are looking for. Here’s a short list:
Squeeze pages, branding
Systems to market business
None of these were agent “needs” 15 years ago because they didn’t exist, but right now knowledge of these tools and their application are crucial to an agent’s success.
What Do Agents Really Want From Their Brokers?
Agents are looking for leadership in these two areas because things have changed so quickly and they have not kept up with it. They are turning to offices that offer more support, take less commission, and have leadership in these areas.
“We are not a real estate brokerage, we are a Realtor Customer Service Business”
Mike Jurecka, Designated Broker URocket Realty
Another company we’ve been watching grow is Attorney Broker Services LLC dba URocket Realty. Their concept is very unique and they tout themselves as an Agent Partner Brokerage. They cap their agents at 100% after a certain volume is reached and offer their agents revenue partner bonuses that extend up to 50% that are very lucrative.
All of their agents get great tech support with systems like Real Geeks and now BackAgent Transaction Management and Bombomb Videos. Their leadership went out and put in place what agents wanted so they could better serve them and it looks like it’s working. They are recruiting like crazy.
They created another way for an agent to eventually retire and receive a residual income. They do have a brick and mortar office spaces for 2 and 3 times weekly training.
All of these models are redefining real estate brokerage in America. We’re confident this is the future of real estate brokerage.
We will see over the next decade of what’s in store for the traditional real estate brokerage split model, but there is no doubt a paradigm shift occurring.
We’ve seen this play out in a couple different industries.
Taxi’s vs. UBER
The hotel industry vs. Air BNB.
CarMax vs. The Used Car Dealerships
There will remain several factors that make a strong real estate brokerage that we don’t think will ever change.
Culture– Realtors still look for a real estate brokerage with a strong culture. They want to be around people they like.
Leadership– Realtors want a real estate brokerage with someone who is leading the way.
We know the right question to ask now is what do you charge me and what do I get. Look around; there are Brokers who are now serving their agents. The traditional model has been turned upside down.
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