So they say now that the residential real estate brokerage industry is facing the impact of a certain "tipping point” A shift, a big change, a revelation, a consumer pivot name your degree of “:different” and in no way is it looking good for the residential real estate brokerage industry.
This comes as no surprise to me, as I have been commenting and blogging on this certain reality for many years. Seven plus years to be exact. The sad thing is that I think this analyst is being very generous with regard to the timing of such a “tipping” event. Why is this? It's because of this very critical observation that I made long before I read his opinion.
I believe that the residential real estate brokerage industry is not nearing a tipping point, I think it has already tipped, and it’s just that we haven’t realized it yet!
See the Inman article linked here.
The point I want to make has been articulated very well by Campbell himself in this article and it goes like this:
"Campbell believes that agents have not been able to deliver on a different consumer experience because of a lack of capital and general power, lack of a feedback loop to tech development and lack of desire to rock the boat. That’s led to stagnation in the industry over the last several decades, but now he believes true change is on the way."
Shocking revelation? Not really. I have long noted that the current responsibility for the consumer experience was in the total control of the independent agent. And as a result, the brokerage industry has been incapable of assuring that much needed change happens now. Our defenses of our business is being paralyzed by the refusal of the agents to change.
The same agents that have basically refused to change to provide alternatives to their outdated traditional processes and ways of doing things. We all know that agents are independent and that independently they are clearly not doing the things that are necessary to be done now to evolve the real estate experience for the consumer. And if they collectively do not do so soon, the well-being of your entire company is at risk.
Are you willing to risk the future of your company on agents that will leave at the "drop of a signing bonus" or for yet another greater commission split?
Today more than ever, brokerage companies need to be design and execute a solid hedge on the old traditional model. And most importantly, a hedge on on what their agents ARE NOT doing. Brokers really need to take control of the consumer experience and to do something about enhancing it before it is too late.
In closing, I know and I can feel your pain as you read articles like this one. But this observation about the industry has reached more than a status of a rumor or something that is forecasted out for many years. It is happening now. The old days of not wanting to go “consumer direct” as a broker are really over. And it is time for your brand and your company to become something different and better in the minds of the consumers that are now seeking and demanding change.
Have a great day.