The Next Generation of Brokerage

Oscar Gonzales Copyright 2013

Realtors Open ForumThe Next Generation of Brokerage


Introductions


Attractive affordability conditions generated by very low mortgage interest rates appeared to be bringing some buyers back to the market.

Pace of a home sales recovery still depends more on job creation and an accompanying rise in consumer confidence.

Recent trends in oil, producer and commodity prices are raising concerns about another round of “recession.”

Mortgage rates are expected to remain low for awhile but qualifying for a mortgage is still very challenging.

The Euro…..

Continued Uncertainty in the Economy and Marketplace


What changes do you see coming in the Next 5 Years?


The Tipping PointIs defined as:• The moment of critical mass, the threshold, the boiling point.• “Mysterious” sociological changes that influence our everyday

life.


ContentCommunication

Construct Consumers

Four Factors Shaping Our Future


………becomes King!!

Content


Content……..becomes King!The Internet makes its possible for buyers and sellers to find information and each other without the middleman.

Consumers have little reason to pay for delivery that isn’t digital anymore, and digital delivery doesn’t create comparable monopolies to support content.


The Forms of Communication

Communication


Communication• Many platforms that seem important today will likely be replaced

in a few years.

• The ongoing convergence of technologies, media forms and other aspects of our lives will continue to intensify the previous three factors.


Curation

Information

Scarcity

Information

Abundance

InformationOverwhelm

“Often what I need to know before I use any of their expertise is more about myself and my community, meaning the people I trust.

I could figure it out myself, but so often time is exactly what I don’t have.”

~ The Consumer

What consumers trust has changed:Instead of an expert, they want to hear from the source – • The person who stayed in the room• Ate the meal • Drove the new car • Got the home loan• Bought the house


Market Structures and Specializations

Construct


Market Structure:

Consolidations &

Specializations

Realtors operate in markets.• None operate in the same market in

which they were composed, structured or functioned.

• Consolidation is a common trend in many markets.

• Realtors are more different than they are similar because of the demands of the marketplace.


Choose what, how & when they consume

Consumers


Profile of Realtors & Homebuyers


Profile of Realtors & Homebuyers• Median age of a Realtor is 56

years old

• 57% are female

• 75% of Realtors have real estate as their only occupation

• 9% of Realtors are foreign born

• Largest share of homebuyers are 25-34 years old; Median age overall is 45 years old

• 37% are first-time homebuyers

• 21 % are single females; 12% are single males

• 15% of first-time home buyers are foreign born; 7% are repeat


• 56% of Realtors have a smart phone with wireless internet and email access

• 91% of information on the website is the members own listings

• Almost 1/2 of members are using social media.

• Realtors spend a median of $250 to maintain their websites

• 88% of homebuyers used the internet to search for a home

• 89% used a real estate agent or broker

• 30% of buyers used print newspaper ads to find info on homes for sale

• 2% of buyers found the home they purchased using print ads

Profile of Realtors & Homebuyers


Generational Differences

For the first time in history there are 6living generations in America.

• GI Generation (1901-1926)• Silent's (1927-1945)• Boomers (1946-1964)• Generation X (1965-1979)• Millennial’s (Gen Y) (1980 -1998)• Generation Z (1999 – present)

• And………


The Next 5 Years ??????

Generation “Wired”


Shift from Dependence to Choice

Success in managing consumer choice depends on giving up the habits of the

old uneven power relationships and forming a new more equal partnership.


Shift from Dependence to Choice• More choices: accessed more easily

•Smart phones and iPad’s

• More kinds of choices•Not just when and how but increasing variety of features

• Great ease of use•Voicemail vs. Text

• Choice not to commit•They expect an option to make full commitment

• Increasing sense of entitlement•As each new generation is offered choice, their standards go up and brokers and agents must respect the new standard


It will not be Business As Usual!


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Realtors Open ForumThe Next Generation of Brokerage


Sponsored by:

The Next Generation of Brokerage


Convergence• To focus on who will win is to miss the point about convergence:

The new doesn’t replace the old; the new and the old combine.


The Tipping PointIs defined as:• The moment of critical mass, the threshold, the boiling point.• “Mysterious” sociological changes that influence our everyday

life.


When Did the Power Shift to the Consumer?• In 1950 with the introduction of a game-changing technology

Newton’ s second law of thermodynamics was now in play:

Objects at rest tend to stay at rest especially if they have had a long day at work.


When Did the Power Shift to the Consumer?


Consumers listenmore to one anotherthan they do to marketing messagesof advertisers in the traditional media.

Technology damaged the

traditional purchase funnel.

People are increasinglyindividualist. They escape any categorizing.

It’s not a question of technology, it’s a

question of customer

relationships.

The Next Generation of Brokerage

Real Estate

Transcript of The Next Generation of Brokerage