By Mike Parker
RISMEDIA, March 22, 2007-In a dynamic and stimulating presentation given at the Association Executives
Institute Conference February 19 in San Diego, Blanche Evans, editor of
Realty Times, woke up many in the audience with her call to action.
Evans presentation, titled: “The Conspiracy to Put You Out of Business
and How You Can Help Your Agents & Brokers Win The Commission Game”
pointed out the daunting list of challenges facing NAR and the real
estate business.
Evans also successfully communicated her view that the real estate
business is in the throes of change, and she presented her action plan
for the industry. She also pointed out that the public perception of
real estate professionals is disheartening, and urged a proactive
effort by every broker and agent to educate the public about the
benefits of using a professional and tech savvy agent.
I started thinking about it all: how the Internet has been a major
agent of change; how third parties perceive openings for leaner and
more feature-laden competitors; how the public misperception is that
all Realtors make gazillions (while being ignorant of the average
Realtor income of $48,000), and how the only true reality in life is
that change is constant.
The question for each of us is: Are we going to sit here and quiver
in fear while change happens, or are we going to be an agent of
positive change and take the best that third parties have to offer and
use our superior knowledge of the business to make us stronger and more
successful?
Can an online home-valuing service ever be as accurate as a local
on-the-ground agent who knows the town, market and the property? No.
Can an online brokerage ever replace a professional real estate agent?
No. Is the growth of social networking (My Space, YouTube, Zillow,
Trulia, Craig’s list, Point2 NLS) a bad thing? No. Why? Because all
these things present opportunities for agents and brokers who are
committed to adapting. Nothing has changed at its core, only the
methods of delivery of services and of managing information have
changed.
No matter how good the run was, it is time to get with the 21st
Century and change business models. No longer can the fees to run a
huge bureaucracy simply accrue without competition; no longer can
exclusionary policies be relied upon to protect our business. It’s
about information and in this age, anyone and everyone has it. Now it’s
about taking back your intellectual property: your listings, your
connections, your knowledge and using it and technology to out-perform
your competitors.
For a long time, any reasonably competent person could make money in
real estate, and almost any one with a license could sell real estate.
Those days are over. The market is still subject to further
challenges. There is about 30+% of our population for whom
homeownership is becoming out of reach.
The reality is that with technology and fabulous tools that
challenge how it has been done for the past 60 years, agents and
brokers are now better equipped and qualified to profit and prosper.
Some business models and conventions are going to need to change. But
they will change and those who change with them will still be on top
regardless of how the business model changes.
“Some people skate to where the puck is. I skate to where the puck
will be”, Wayne Gretzky famously said. Learn from the past but focus on
how to win the future.
Mike Parker can be reached at mparker@TheBlackwaterCG.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.