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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 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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