Trend 6: The NAR-Broker Relationship

How Brokerages Can Best Leverage NAR

This is the fifth blog post in a series of ten that covers the trends that will shape the residential real estate industry in 2019 and beyond according to the publication, Swanepoel Trends Report 2019. The views, thoughts, and opinions expressed in this post belong solely to the author, and not necessarily to the author’s employer or the publication cited.

Just a quick caveat before you read this post; I am acting Secretary for the Lancaster County Association of REALTORS and sit on their Board of Directors. So some could take a look at this post and say I’m biased in my point of view. I get it. Having said that, here we go – – –

The National Association of REALTORS (NAR) is over 1.3 million members strong and has been around a long time. Anytime you’re dealing with a body this size, your decisions will second-guessed by a lot of people. Even if it is just 1% of the members that are disgruntled, that tally comes to over 10,000 people. When was the last time one of your decisions was critiqued by that many people?

So what exactly does NAR do?

If you ask ten random REALTORS this question, I guarantee that close to seventy percent will have no idea. That’s a problem and perhaps one that I’ll deal with in another blog post in the future.

Well here’s the short answer; A LOT.

Let’s start with where they bring the most value to the table according to the Swanepoel Trends Report:

Multiple Listing Services (MLS) – This is probably the most recognized benefit that we have because most agents use it all the time. Most MLS’s across the country are owned, or partially owned, by their local association.

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Trend 7: The Digital End-To-End Real Estate Transaction Dream

Closer than Ever, But Still Far Away

This is the fourth blog post in a series of ten that covers the trends that will shape the residential real estate industry in 2019 and beyond according to the publication, Swanepoel Trends Report 2019. The views, thoughts, and opinions expressed in this post belong solely to the author, and not necessarily to the author’s employer or the publication cited.

The real estate transaction has long been an analog process that has, until recently, been more than adequate. Real estate agents who could manage the plethora of different systems and personalities (i.e. mortgage, inspection, title, insurance, etc.) could excel in the business.

More companies, both inside and outside our industry, are now recognizing that the real estate transaction is broken. Too many unknowns; too many systems; too many parts that don’t talk to each other; too much duplication – – – and none of them create an exceptional customer experience. But that is changing.

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Trend 8: Blockchain + Real Estate

Redesigning the Brokerage Relationships with Agents and Consumers

This is the third blog post in a series of ten that covers the trends that will shape the residential real estate industry in 2019 and beyond according to the publication, Swanepoel Trends Report 2019. The views, thoughts, and opinions expressed in this post belong solely to the author, and not necessarily to the author’s employer or the publication cited.

If you’re like me, your eyes glaze over when someone tries to explain what Blockchain is. Most people that write about the topic are techno-geeks who are trying to impress you with their level of knowledge on the topic. Unfortunately, the average person gets lost in the Blockchain jargon about the second sentence into an article and they stop reading.

The average person’s understanding of Blockchain is illustrated perfectly in this comic:

*‘Dilbert’ comic courtesy of Scott Adams*

Well here’s one of the reasons why you should want to pay attention and try to understand this concept and how it could effect the real estate business: forty of the top financial services companies have already invested over $1 Billion (yes – with a ‘B’) in Blockchain company infrastructure in the hopes of reducing costs in the future.

Let me try to explain Blockchain in simple terms to that you can understand it.

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Trend 9: The Evolving Real Estate Value Proposition

Redesigning the Brokerage Relationships with Agents and Consumers

This is the second blog post in a series of ten that covers the trends that will shape the residential real estate industry in 2019 and beyond according to the publication, Swanepoel Trends Report 2019. The views, thoughts, and opinions expressed in this post belong solely to the author, and not necessarily to the author’s employer or the publication cited.

Running a real estate brokerage “ain’t what it used to be.” That is pretty much an understatement. Today, brokers walk a tight rope between serving their agents and the consumer. Tilt to one side too far and a brokerage risks plummeting to irrelevance.

The Swanepoel Trends Report examines the changing relationships between the broker/agent and the broker/consumer and suggests ways in which all sides can win if they embrace certain strategies.

The Broker/Agent Relationship

Brokerages’ compensation models have evolved over time. From the early days of 50-50 splits to 100% desk fee models to hybrids somewhere in between, the permutations are endless.

Agent’s are now more independent than they have ever been before. They only want to pay for what they feel they need from their broker and many agents are now accustomed to paying for services from private vendors apart from their brokerage. As a result, the agent relationship with the broker has eroded.

Other market changes have led to a further deterioration in this relationship. They include:

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Trend 10: The Residential Real Estate Brokerage Shift – Suddenly Arrived in 2018

This is the first blog post in a series of ten that covers the trends that will shape the residential real estate industry in 2019 and beyond according to the publication, Swanepoel Trends Report 2019. The views, thoughts, and opinions expressed in this post belong solely to the author, and not necessarily to the author’s employer or the publication cited.

If there is one constant in the residential real estate industry, its change. And with change, brings a lot of mixed emotions. Some individuals and companies seem to thrive in this environment, while others hold onto the past and get swept away in a tsunami.

The Swanepoel Trends Report cites a number of examples of companies that were on the top of their game but then failed to anticipate a shift in the business environment. Read these two quotes and you’ll get the picture: