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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REALTORS® Property Resource (RPR) – A Powerful Tool for Today’s Real Estate Agent

The National Association of REALTORS® data product is a powerful resource for real estate agents that know how to harness its information.  Here is a presentation that will introduce you to the program and give you an overview of its unique features and comprehensive reports.

All the best!

The Home Selling Process

What does it take to get your home SOLD in this market?  Click on the infographic to follow the process.

the-home-selling-process-infographic

All the best!

Understanding Zillow’s NEW Owner’s Dashboard

Zillow is about to go after a huge, untapped portion of the real estate market that they have never pursued before – – – Sellers.  Property owners can now hop on Zillow and manage their real estate.  The real estate search portal also provides comprehensive, in-depth market analytics that provides consumers with greater insight into what is happening in their local real estate market.

Whether you like Zillow or not, you’ve got to hand it to them.  They’re always pushing the envelope and making industry insiders nervous.

All the best!

Understanding and Explaining the Dreaded Zestimate

Over the past couple of years, homeowners have been able to go online and obtain an estimate of their home’s value in the span of about 30 seconds.  Just type in an address and a value is delivered to your computer screen for your viewing pleasure.  But how accurate is the value?

Before I dive into the accuracy issue, lets spend a moment on how we got here.  Twenty years ago, if a homeowner wanted to find out how much their home was worth, they would have to contact a real estate agent and undergo a root canal just to obtain a five or six digit number.  The homeowner would have to arrange the appointment with the agent to see the home; spend an hour or two with the agent walking through the home and answering a myriad of questions; wait three days for the agent to decide to come back; sit through a three hour appointment at a kitchen table and listen to a presentation about the agent’s qualifications and company stature; then get THE NUMBER.

Now I ask you, if you were a homeowner and had two options to obtain the value of your home, would you choose the 30 second method listed in the first paragraph of this post or the five day, painful dental alternative?  So when I hear agents rail against these online estimators and roll their eyes about the accuracy of them, I just want to say, “Shut up and deal with it!”  They are now a fact of our business.  Learn how to present these estimates instead of ignoring them.   Continue reading

2016 – The Year Ahead in Real Estate

The real estate business is on the threshold of some potentially massive changes in the year ahead.  I make some bold predictions on what lies ahead in 2016.  Will they all come to fruition?  Probably not.  But it was fun to play Nostradamus and peer into a crystal ball. Continue reading