See this article and the KW announcement.
So it seems that with each new day is a new entrant into the iBuyer marketplace. Note I said the iBuyer marketplace.
I said this because what the iBuyers are doing - with nearly total uniformity - is providing an option, yes a choice for the consumer. And the consumer when properly presented with that choice is opting in for the iBuyer process in contrast to what you are offering today - the traditional real estate experience and processes.
And therein lies the most critical discovery you need to fully understand.
Here’s what I think we can learn from this pivot away from what we do to what the consumer is signaling that they prefer. The consumer is waving their arms around and saying that they are essentially sick and yes tired, of the random real estate experience. The exact experience I have referred to as what 1.3 million independent agents are offering today.
You know the one I’m talking about. The one where we use outdated for sale signs, unsecured lock box access, antiquated open houses, empty brochure boxes, conditional sales processes and then fight like mad to do away with the portals that provide the only real meaningful consumer exposure to listings in the industry. The same experience that each year the consumer consistently and effectively drives the price down.
Do you know why this is so obvious and true? Why else would the consumer agree to take less and pay more just to avoid what we cling to as the coveted traditional real estate transaction?
So I have figured out the biggest catalysts for change in the industry's history. Have you? It’s the iBuyer. And oh yes, the iBuyer turned iSeller. So what now?
Very smartly, industry players like KW that see this trend and the resulting “power of the pivot" do not want to just stand around and watch as the iBuyers snag away consumers with a greatly improved, formatted, predictable process. They cannot or else they fully realize that what they have today as a network will certainly be gone tomorrow. Ironically, the smart players are getting more involved and to assure that they have a role in this model in the future.
Yes, they have awakened to the day that has arrived whereby the agent no longer controls the experience. They essentially turn the transaction over to the iBuyer and the iBuyer controls the experience. And then, the iBuyer turns into the iSeller and they in turn control the marketing of the property. Now you really need to think about how that is causing a major pivot for the consumer! Because it is.
So who cares about this pivot? The answer is everyone, Or at least everyone should. Even all the diehard agent-centric forces like KW understand this now, and so does Realogy, and even Zillow and let’s not forget Redfin and on and on and on. The institutional processes used by the iBuyer are busting the agent spheres of influence wide open.
So why this blog? Because I believe that we need to pay attention to this pivot being powered by the iBuyers and being adopted now by the consumer. Our traditional processes are an issue now and need to change. This and the retention of your top producers are the two hottest topics you should be focused on today. These two components your business need attention before they systematically cause the demise of all that you have built over these many years.
In closing if your defense of the status quo is in anyway an offense that is based in what you have today and how it isn’t going away - I highly suggest that you think again.
Have a great day.