Where is the real estate industry heading?
As somebody who is relatively new to the real estate industry, specifically with 3 years in the title and escrow industry, it is hard for me to determine exactly where the real estate industry is heading. Every corner of the real estate industry seems to operate very uniquely as you compare the real estate agent's personal business, to the mortgage lender's personal business, to the title representative's personal business.
The pressure from a tough market can really create change and disrupt the normal day to day of the industry. I constantly see real estate agents and mortgage lenders announcing that they have made the move to a new company for one reason or another. I do not see this as much on the title and escrow side which is interesting.
My current prediction of where things are heading is centered around the idea of aligning directly with partners. I believe that at some point in the near future, every real estate brokerage, from the huge brokerage with 50 offices in a state, to the small boutique one office brokerage, will align directly with their preferred partners. This is already happening if you look closely enough. In addition to helping clients buy and sell houses, the bigger brokerages (in terms of number of agents and office), and the bigger individual agents, seem extremely interested in partnering directly with vendor partners for one reason or another.
I certainly understand having your preferred partners readily available, offering a one stop shop for the transaction inside your brokerage, marketing agreements, and office shared co-working spaces reserved for vendor partners. On top of all of that, there is certainly an appeal to the financial benefits of being a partner or controlling operator of a piece of the transaction such as the mortgage or the title.
Affiliated Business Agreements, Joint Ventures, and Marketing Service Agreements seem to be becoming more and more common. As this becomes the normal construction of a brokerage, it seems that the buyer and seller lose more and more control of choice during the transaction and quality vendors will need to create strong, meaningful partnerships to survive. If every newly licensed real estate professional that enters the industry has every relationship waiting in their office, being forced down their throat by the broker, are there even any choices of relationships left?
Who benefits from the most from these relationships? Who are the main beneficiaries of the ABA, the MSA, and the JV? The Broker? The title or mortgage company because they have "guaranteed" or "expected" business? The newly licensed agent who doesn't have to pay the admin fee if they keep the deal in house?
I really enjoy the people I have met and the relationships I have created in the industry. I take pride in finding ways to help people grow their business, no matter the volume they bring in or how many contracts they send me directly. I hope that meaningful relationships and value created will always be two of the main reasons that people choose to work with each other. I can't help but feel like the reality of human nature, the pressure of any tough market, and the reality of our individual lives with supporting our families, all seem to be threatening the importance placed on relationships and value.
I feel that every single day has new opportunities and new challenges. There is plenty of business to go around for everybody and I do believe there always will be. The landscape will continue to shift with every market. We will all have to adapt to reach our individual and team goals. Relationships and value will always be important to some people, but not everybody. In the end, all we can do is control the aspects that we can control. Let people know how important they are to us, and offer ways to help them grow their business.
The pressure from a tough market can really create change and disrupt the normal day to day of the industry. I constantly see real estate agents and mortgage lenders announcing that they have made the move to a new company for one reason or another. I do not see this as much on the title and escrow side which is interesting.
My current prediction of where things are heading is centered around the idea of aligning directly with partners. I believe that at some point in the near future, every real estate brokerage, from the huge brokerage with 50 offices in a state, to the small boutique one office brokerage, will align directly with their preferred partners. This is already happening if you look closely enough. In addition to helping clients buy and sell houses, the bigger brokerages (in terms of number of agents and office), and the bigger individual agents, seem extremely interested in partnering directly with vendor partners for one reason or another.
I certainly understand having your preferred partners readily available, offering a one stop shop for the transaction inside your brokerage, marketing agreements, and office shared co-working spaces reserved for vendor partners. On top of all of that, there is certainly an appeal to the financial benefits of being a partner or controlling operator of a piece of the transaction such as the mortgage or the title.
Affiliated Business Agreements, Joint Ventures, and Marketing Service Agreements seem to be becoming more and more common. As this becomes the normal construction of a brokerage, it seems that the buyer and seller lose more and more control of choice during the transaction and quality vendors will need to create strong, meaningful partnerships to survive. If every newly licensed real estate professional that enters the industry has every relationship waiting in their office, being forced down their throat by the broker, are there even any choices of relationships left?
Who benefits from the most from these relationships? Who are the main beneficiaries of the ABA, the MSA, and the JV? The Broker? The title or mortgage company because they have "guaranteed" or "expected" business? The newly licensed agent who doesn't have to pay the admin fee if they keep the deal in house?
I really enjoy the people I have met and the relationships I have created in the industry. I take pride in finding ways to help people grow their business, no matter the volume they bring in or how many contracts they send me directly. I hope that meaningful relationships and value created will always be two of the main reasons that people choose to work with each other. I can't help but feel like the reality of human nature, the pressure of any tough market, and the reality of our individual lives with supporting our families, all seem to be threatening the importance placed on relationships and value.
I feel that every single day has new opportunities and new challenges. There is plenty of business to go around for everybody and I do believe there always will be. The landscape will continue to shift with every market. We will all have to adapt to reach our individual and team goals. Relationships and value will always be important to some people, but not everybody. In the end, all we can do is control the aspects that we can control. Let people know how important they are to us, and offer ways to help them grow their business.