RE/MAX Pinnacle

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:

“Google is not a real company.  It’s a house of cards.”

Steve Ballmer, CEO, Microsoft (2004)

“Neither Redbox nor Netflix are even on the radar screen in terms of competition.”

Former Blockbuster CEO Jim Keyes (2008)

  

So if businesses evolve either up or down, where are we now?

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Lancaster County’s April 2018 Real Estate Market – By the Numbers

The old saying, “April showers bring May flowers” is a reminder that even the most unpleasant of things, in this case, the heavy rains of April, can bring about very enjoyable things indeed – an abundance of flowers in May.  The lesson?  Patience.

So how did the rains of April affect Lancaster County’s real estate numbers?  Let’s take a look.

(Click on each infographic for a larger version)

2018 04 April Market Stats - Avg Sales Price

The Average Sales Price made a huge jump in April – 9%.  We have been humming along for months between 1-4% so this is a significant change.  As you will see when we examine the Absorption Rates this month, the upper price ranges (i.e. $400,000+) are now starting to move which is a good sign. Continue reading →

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Lancaster County’s February 2018 Real Estate Market – By the Numbers

February’s winter winds are behind us and the days are now starting to get longer.  As we head into spring, there is always a sense of anticipation for what lies ahead.  Let’s take a look at the latest numbers.

(Click on Infographics for larger size)

2018 02 February Market Stats - Avg Sales Price

  • Average Sales Price – A huge jump of 7% from last year at this time.  As the supply of inventory continues to struggle to keep up with demand, expect prices to continue their healthy upward trend.

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