I consider myself an “old school” real estate agent, I started in 1985. I have seen numerous changes in the real estate industry over the years. Many of the changes had been in regard to license law, but since the mortgage melt down starting in 2006 and the eventual across the board financial difficulties our country has experienced, major changes have started to take place in the entire real estate industry. This evolution is not over but is changing as we speak.
What I’m seeing is that the traditional real estate franchise business i.e. C21, Coldwell Banker etc. are struggling. This business plan has been around for 50 years. You purchase a franchise, rent or buy a nice office, and you hire a bunch of agents. The more the merrier. The office and agents ran adds in the local paper and real estate magazines to sell homes. The agent belonged to the local board of Realtors and listed the property for sale in the local MLS. No one had access to the local listings on the MLS except members of the local MLS. The listings on the MLS were a valuable commodity and were guarded fiercely by the local board of Realtors and the National Association of Realtors. When a home sold, the listing agent would pay a portion of their commissions to the office and the franchise via royalty fees. After paying their business bills, MLS fees, MLS membership, advertising, business cards, flyers etc. Realtors kept what ever was left.
This real estate formula perked along nicely for some 40 or 50 years. Like the travel industry, stock brokerage industry and many others, the real estate industry was destined to change and evolve. Several factors have attributed to the change, not the least of which is the Internet. With the arrival of the Internet came the more widely distributed information on homes for sale. It became possible for a potential home buyer to sit in their home or office and research homes for sale in areas that they were interested in purchasing. This was wildly popular by the masses, because they were able to maintain their anonymity for the most part until they were ready to buy. Today, statistics show that over 87% of home buyers start their search for a new home on the Internet.
Unfortunately, there are many real estate practitioners left in the business after the great financial crisis we have been going through that are still holding on desperately to the old way of doing business. It is perfectly normal for a human being to fight change, but the early adapters to new ideas and technology are usually rewarded for their foresight and adaptability.
We at Florida’s Beautiful Homes™ are a small group of like thinking early adapters who work diligently at being on the cutting edge of real estates future today and into the future.
Dave Tipton, Broker- Florida’s Beautiful Homes™
813-653-1241
reprinted from ActiveRain
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I agree, it’s hard for the traditional broker model to work, at least profitably, in the current market. Here’s to success to all of us “early adapters” to the new reality.
Michelle Carr-Crowe, ABR ALHS ASP CDPE RECS SRES