The Future of Real Estate
I have one word for the future of real estate, and that word is "Technology."
Believe it or not, real estate agents and brokers are on the cutting edge of todays internet technology. Okay, so let me re-phrase that, the good real estate agents and brokers are on the cutting edge of internet technology. Why? Because real estate is the backbone of the economy (backbone + economy = $) and technology is what todays consumer wants. Just google 'real estate' and you'll come up with 783 million possible results.
It comes as no surprise that over 80% of all consumers looking to purchase a home will search for that home via the internet. Why? Well because many people start their search months (even years) before they are ready to buy. And after all, who wants to get hounded by a sales person when you are just window shopping? When searching for a home, you have access to pictures, crime stats, comparable homes in the market, financing rates and statistics, local schools in the area and whatever else you need to make a smart, educated decision when purchasing a home. And best of all, this can all be done anonomously until you reach the point where you want to pull the trigger and make that leap of faith to follow through with your new home acquisition.
The new buzzword in the industry is Web 2.0. So what is web 2.0? Simply put it is a more interactive platform for the consumer. An example would be a blog or an instant message chat on a website. Something that allows the consumer to interact anonomously, but still get the immediate answer they are looking for. In other words, not having to browse through hundreds of 'STATIC' pages to find one simple answer. Consumers want answers immediately and to get these answers website platforms need to allow for interactivity and speed of interactivity. Otherwise, consumers will simply say 'NEXT' and move on to the next site that allows for this immediate yet anonomous information source.
So here are my predictions for the future of real estate (in no specific order):
1. Real estate websites will move to more blog like structures where consumers can interact or comment on every aspect of a website.
2. Video and live feeds will become common place. Streaming video will replace static pictures (JPEGS).
3. Instant messengers will replace E-Mail. E-Mail will still exist for a while, but will be used like the fax machine is used in todays world.
4. Synchronization will become a part of the future: When entering a listing on one real estate website, that same information will automatically be fed to tens of thousands of competing or similar websites.
5. Everything will feed into wireless technology. Sites will have devices that allow instant access for wireless consumers to interact as well as watch video.
6. Real Estate Agent commissions will shrink to about half of the existing rate because of the tremendous competition and more tech savvy consumers.
7. Transaction brokers will not exist in the future. You will either be a Buyers agent or a Sellers agent. In other words, real estate agents won't be a middle man in any transaction, they will represent the buyer only or the seller only (and for a lower commission as mentioned above).
8. Those real estate firms that can't keep up with the technology will be non-existant.
9. Boutique real estate firms will have the same selling tools and media access as the large real estate power houses - this will even the playing field out a lot more.
10. Consumers will have the same or similar real estate sales tools via the use of the internet as real estate agents will have. This will force real estate agents to be incredibly aggressive in their marketing techniques and knowledge of the market. They will still be of value, but will be required to be exceptional.
Okay, so that is my rant on the future of the real estate market. I try not to sugar coat my projections and give a true picture of what the market will show in the years to come, whether it is to the benefit to me as a real estate agent or not. I would be interested to hear your input?