THE EVOLUTION OF THE INTERNET

Executive Overview
Technology has significantly influenced the way the real estate marketplace operates. The pace of technological change has been startling. However, the Internet is a very dynamic beast, and although we as an industry have advanced with e-mail and e-commerce, we have more coming down the pike, including ASP, wi-fi, broadband, and blogging.

CHANGING CONSUMER CHARACTERISTICS

Executive Overview
There is not one single customer type. Increasingly we are learning that different generations and different groups behave differently and have differing needs based upon a wide range of factors.  Specialization, coupled with niche marketing, will provide agents an excellent opportunity to gain a competitive advantage in the future.

ADVANCEMENT AND SOPHISTICATION OF REAL ESTATE AGENTS

Executive Overview
Gone are the days when real estate  agents were the gatekeepers of a wide range of real estate information.  They are now, by default, broad experts in the home buying and selling process.  The pace and extent of change in the real estate business has been escalating faster and faster. The challenges facing the agent of today are more complicated and complex than ever before.  To succeed in the new world of real estate, agents will have to learn some new skills, be very technology proficient, offer a broader base of services, and learn to adapt quickly.

EVOLUTION OF MULTI-LISTING SERVICES

Executive Overview
Although MLS’s continue to play an essential role in the US housing market, the migration to the Internet opened a myriad of complexities. The industry and Realtors® have worked through data ownership, but still struggle to ensure the security of data. The next hurdles include data exchange, territorial issues, and uniformity.

THE REALIGNMENT OF MARKETING STRATEGIES

Executive Overview
The Internet has become the most powerful tool in real estate, both as a research device and as a marketing medium. The web has totally changed the consumer’s focus in selecting a media containing the desired data.The challenge for brokers and agents is to find a dynamic blend of print and Internet advertising in order to create one balanced channel that meets the specific needs of their segmented and fragmented real estate consumer. The potential for those who succeed may be a significant increase in market share.

THE FRANCHISING REVIVAL

Executive Overview
Franchising is one of the most popular ways to expand your real estate brokerage company. The Internet has also fueled the growing need for a recognizable online brand, providing a competitive advantage and increased market recognition. Globalization is an added bonus for franchising. So whether a real estate agent wishes to expand their brand, or quickly acquire another brand, franchising is currently one of the best opportunities to achieve that end.

TO THOSE WHO HAVE … MORE WILL BE GIVEN
Executive Overview
Size, previously considered by many as more cost-prohibitive than effective, has demonstrated to the world just what sheer volume is capable of overcoming.  Economies of scale can change the financial landscape and dominate industries. For the first time in history the residential real estate brokerage industry has a mega company with the power to change certain rules.

INTEGRATING AND MANAGING THE REAL ESTATE TRANSACTION

Executive Overview
While the 2000 dot.com crash rained destruction on the one-stop-shop-parade, the integration of transaction components, the effective management of the transaction and the drive toward a more seamless real estate transaction is still very much alive.  However, transaction management is different today, as title companies lead the way by laying a solid foundation for an automated real estate transaction.

A POPULATION ON THE MOVE

Executive Overview
Although our population has always moved and impacted our industry, Baby Boomers have caused or changed more trends than any other group. As a result of the cost of living and the availability of affordable housing, a significant group of Boomers are likely to move.  This potential geographic relocation places us at the initial stages of a huge population shift, one that could have a national impact, redefining cities across the US, and creating opportunities galore for the smart broker and real estate agent.

IMPACT OF IMMIGRANTS AND MINORITIES

Executive Overview
Many immigrants come with little or no knowledge of the inner workings of the American real estate transaction, nor do they understand the vast number of terms used during the process. In many cases, this is compounded by a lack of proficiency in the English language.  This poses a huge challenge for the housing industry, but also a huge opportunity for Realtors®.

THE GROWING KNOWLEDGE AND SKILLS VACUUM

Executive Overview
During the last five years the real estate industry has absorbed an influx of newly licensed agents at a rate and number that has shattered all records. Simultaneously, brokers and agents have been bombarded with new business models, the Internet, bundled services and specialization.  The need for true knowledge and fundamental sales skills has never been more prevalent and essential than today.

THE ENTRY OF “OUTSIDERS”

Executive Overview
The real estate industry’s current fear of entry by outsiders is not new.  Every time it’s rumored that some large player is going to enter the industry “the end” is predicted, and scenarios of how the paradigm seem to appear out of thin air. Increasingly the involvement of outsiders has been larger and more prevalent in recent years. As the real estate industry continues its consolidation over the next few years, key outsiders could rewrite the rules of the real estate transaction.

REAL ESTATE TREND 3

THE PROLIFERATION OF NEW BUSINESS MODELS

Executive Overview
Competition in the residential real estate brokerage industry is immense and intense. Brokers and agents are increasingly assailed by a large selection of new business models, products, commission structures and Internet options. In reflection, one can see that previous business models and trends significantly influenced the industry.  For example, the growth of multiple listing systems (MLS) in the 60’s, the franchising of the 70’s, the 100% concept in the 80’s, and technology in the 90’s. There can be little doubt that something new today will again cause a major shift in the real estate industry.

THE REBIRTH OF A NEW MIDDLEMAN – LEAD GENERATION

Executive Overview
Numerous attempts to split or reduce the role of the real estate agent (Realtor®) in the home selling and home buying transaction will continue. The recent strong growth of the lead generation initiatives are raising concern among some, since they feel the existing commission pie is being pre-sliced. Future dependency on these leads may also allow for price increases that will further exacerbate the situation.

ELECTRONIC DEVICES TAKE CENTER STAGE
Executive Overview
We’ve been dazzled with e-commerce, palm pilots, blackberries, bluetooth, m-life, t-mobile and more. Now the time has come to simplify and integrate all these individual devices into fewer, multi-function, more multi-task-enabled devices. Digital cameras, PDAs, GPS, REDtablets, iPods, portable MP3 players and Blackberry devices are just some of the items currently making the news and providing a promise of saving time and increasing productivity. For those who love gadgetry, heaven has a name: CompUSA.