The Evolution of Real Estate
Somewhere in America…
A top-producing real estate agent is meeting a buyer in a local coffee shop. It’s right in the desired neighborhood, and a convenient location for the agent, who doesn’t have a traditional “desk” at her brokerage. It’s their first face-to-face meeting after a dozen Facebook conversations. In preparation for their first meeting, the buyer has done extensive online research.
As they sit down to a cup of coffee, the agent uses her tablet computer to give “virtual showings” of several listings, using MLS data, interior photos, street-level video and satellite photos. Meanwhile, the buyer uses her phone to forward those listings to her Facebook page and sends texts or tweets to her friends asking for comments about the neighborhood or properties. Two people check in right away with positive remarks, and the agent and buyer are soon on their way to the first listing. The agent doesn’t need to stop by the broker’s office because she has all of the information she needs, right in the palm of her hand.
Real Estate Redefined
Did you know? Structural trends are impacting all aspects of the real estate industry. They include changes in technology, as well as personal, buyer, and seller behavior. Real estate professionals who understand and embrace these trends and their interrelationships will remain or become leaders in their local markets.
Red Door Brokers is committed to providing your platform from which to capitalize on these important structural trends.
Trends Impacting the Real Estate Industry
Our goal at Red Door Brokers is to stay on top of marketing and industry trends, enabling us to provide the best resources and tools to our brokers.
Trend #1 – Mobile
Today, real estate professionals can conduct virtually any aspect of their business from outside the office — reading e-mails, social networking, downloading MLS data, uploading mortgage applications and contract offers – the list of possibilities goes on and on.
Trend #2 – Social
“We have reached a tipping point with social media. To be successful in the future, you have to understand how to manage this new form of communication.” — A real estate consultant
Facebook, not Google, is the most-visited U.S. website — a clear signal that the Americans are gathering information in a new way. People no longer rely on newspapers, radio, television or even websites for news and information. Instead, they spend their time doing social networking, such as reading their friends’ Facebook postings, Tweeting each other, sharing photos on Flickr or watching videos on YouTube. Since consumers of all ages now “hang out” at social media sites, real estate professionals need to understand how to create an appealing online presence that ultimately results in referrals.
Trend #3 – Local
“Having extensive knowledge of a local market is inherently valuable.” — A regional broker “
It’s never been easier to gather information about a local real estate market, a neighborhood, street or property. Among the online options are broker and agent websites, social media sources, blogs, public records, streetscape videos, satellite photos and services that estimate the market value of each property. Because so many buyers have done extensive online research before contacting a real estate professional, many agents report that their number of physical showings has actually decreased. Today, it’s the consumer who actually “drives the car.”
Trend #4 – The Cloud
“It’s the end of the desktop as we know it.” — A technology consultant
A new era of “cloud” computing offers endless possibilities for Realtors. Key documents, including client files, forms, and checklists can be easily accessed from any location by any device. There’s no need to worry about whether or not the latest version of a buyer’s offer is on the agent’s USB drive. Crucial business data is stored away from the physical premises, providing protection in the event of fire, flood, earthquake or hurricane.
Trend #5 – Company Presence
“Every company is looking at reducing costs and real estate is a sizeable chunk of their budget.” — A commercial broker
As more agents work from home or remote locations, many brokers will be able to reduce their office footprint. In general, real estate offices will be smaller. One of the implications of this trend is that agents are likely to become more self-reliant and in less need of a broker’s traditional services. Brokers saddled with large offices and overhead employee expenses will have no choice but to cover these expenses through agent commission splits or agent paid office fees. On the horizon is the unraveling of the large-scale brokerage.
Trend #6 – A New Generation
“Putting our young people in charge of organizing their own meetings has been hugely successful.” — A veteran real estate broker
In 2010, the Millennial population surpassed the Baby Boomers, signaling the arrival of a new generation into the real estate market. In the next few years, young adults in their 20s and 30s will constitute a growing share of the real estate market — and play a larger role within the industry itself. Millennials will establish households and begin starting families. It also means adopting social media as a primary method for meeting prospective clients and cultivating those relationships. Within the real estate profession itself, the advent of younger professionals is bringing “new blood” and style to brokerage companies and local associations.
Trends Source: National Association of Realtors
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