For brokers and real estate companies, the story is the same. You, too, will need to specialize and target certain niches. Your company’s brand name may be meaningless in general, but you just might be able to build a reputation for high-rise condos in San Francisco or senior housing. Brokers, also, will need to focus on winners and specialists. The probability of bringing a chronically underperforming generalist salesperson up to snuff is vanishingly small. You should focus on attracting and retaining top talent or steering your associates into specialties rather than wasting time on those who aren’t cutting it.
This focus on top talent might have long term implications for the real estate business as a whole as fewer and fewer new folks learn the ropes. But, as an individual broker, you’re in a battle for survival. You need to secure the best people.
In conclusion
This book explores the rapid technological and business evolution of the residential real estate marketplace. As a result, companies and circumstances change in a flash. By the time you read this, some of the individual companies mentioned here may no longer exist. Unfortunately, that is one of the challenges of predictive books.
Having said that, I encourage you to view the rapid change in the real estate landscape as further support of the book’s basic premise—the market is changing, and methods of the past won’t cut it. Time marches on and waits for nobody. Technology is killing off older companies across all industries. The average lifespan of an S&P 500 company dropped from 60 to 20 years.[70] Startups are on shakier ground. Businesses come and go, victims of the creative destruction of the market. To stay on top, you must keep up with the latest innovations, whatever they may be.
Although this book focuses on technology and business innovation, don’t forget the human side of real estate. One reason we all went into this business is to help people find new homes and upgrade their lives. We should use technology to improve efficiency, reach more prospects, and make better deals. But, sitting at our computer, it’s easy to lose sight of the bigger picture. Remember, behind your mouse clicks and lead generation tools are real people who need your help. Ultimately, that’s why we’re all here.
I’d love to hear your ideas. Contact me on LinkedIn or Facebook and let’s start a discussion!
Best of luck to you,
Gregory Charlop
* * *
[1] https://en.wikipedia.org/wiki/Pareto_principle
[2] https://www.nahb.org/en/news-and-publications/
press-releases/2018/04/millennials-leading-the-growth-of-new-home-buyers.aspx
[3] https://www.redfin.com/blog/2018/02/sight-
unseen-in-2017.html
[4] https://theamericangenius.com/housing/real-estate-marketing/much-real-estate-professionals-spend-marketing-stats/
[5] https://realestate.nextdoor.com/
[6] http://www.pewinternet.org/fact-sheet/social-media/
[7] https://www.nar.realtor/sites/default/files/
reports/2017/2017-real-estate-in-a-digital-age-03-10-2017.pdf
[8] http://www.lumentussocial.com/wp-content/uploads/2016/11/Why-Social-Media-Isnt-Working-for-You-and-How-to-Fix-It-whitepaper.pdf
[9] Private communication
[10] The Fall Oaks town name, website, and email address are entirely fictional. They did not exist at the time of this writing and have no connection to any person or town, real or fictional.
[11] Private communication
[12] http://www.pewinternet.org/2017/05/17/
technology-use-among-seniors/
[13] https://www.inman.com/2018/10/31/7-senior-housing-options-every-real-estate-agent-needs-to-know/
[14] https://www.nar.realtor/sites/default/files/documents/2017-Profile-of-International-Activity-in-US-Residential-Real-Estate.pdf
[15] https://www.nar.realtor/infographics/infographic-top-reasons-for-choosing-a-career-in-real-estate
[16] https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-nar-member-profile
[17] Referrals and the internet are the top two ways folks find real estate agents
[18] https://www.forbes.com/
sites/forbesrealestatecouncil/2018/06/27/why-venture-capitalists-are-investing-billions-into-real-estate-technology/
[19] https://techcrunch.com/2019/03/20/
opendoor-raises-300m-on-a-3-8b-valuation-for-its-home-marketplace/
[20] https://www.inman.com/2019/01/21/
purplebricks-pivots-to-more-traditional-model-in-us/
[21] https://www.nar.realtor/research-and-statistics/
research-reports/real-estate-in-a-digital-age
[22] Heraclitus
[23] https://www.forbes.com/sites/donnafuscaldo/
2018/09/26/home-buying-goes-high-tech-as-millennials-become-largest-real-estate-buyers/#3816300d7774
[24] https://www.psychologytoday.com/
blog/you-illuminated/201204/brain-scans-show-how-meditation-improves-mental-focus
[25] http://journals.sagepub.
com/doi/abs/10.1177/0956797612459659?rss=1&;ssource=mfr&
[26] https://www.psychologytoday.com/us/
blog/what-mentally-strong-people-dont-do/201504/7-scientifically-proven-benefits-gratitude
[27] https://sleepfoundation.org/excessivesleepiness/
content/how-much-sleep-do-we-really-need-0
[28] https://sleepfoundation.org/sleep-topics/sleep-hygiene
[29] https://www.sleepassociation.org/
patients-general-public/insomnia/sleep-hygiene-tips/
[30] http://healthysleep.med.harvard.edu/
healthy/getting/overcoming/tips
[31] https://www.amazon.com/Protection-Computer-
Readers-Glasses-Shatterproof/dp/B00BQ7KBV4/
[32] https://www.nytimes.com/2015/05/12/upshot/
more-consensus-on-coffees-benefits-than-you-might-think.html
[33] https://www.scientificamerican.com/article/
the-healthy-addiction-coffee-study-finds-more-health-benefits/
[34] http://annals.org/aim
/article/2643435/coffee-drinking-mortality-10-european-countries-multinational-cohort-study
[35] https://www.sciencedaily.
com/releases/2004/05/040512041022.htm
[36] https://www.sciencealert.com/here-s-when
-you-should-be-drinking-your-coffee-according-to-science
[37] https://www.theatlantic.com/health/archive/2014/03/how-athletes-strategically-use-caffeine/283758/
[38] Placester Life as a Real Estate Agent Survey 2013
[39] The Art of Not Working at Work, The Atlantic, Nov 3, 2014
[40] https://www.quora.com/How-many-hours-on-average-do-realtors-spend-per-client
[41] https://www.nar.realtor/education/courses
[42] https://www.car.org/education/calendar
[43] http://www.dce.harvard.edu/
[44] http://www.ucla.edu/academics/continuing-education
[45] https://continuingstudies.stanford.edu/
[46] https://www.amazon.com/The-Agent-Marketer-Flash/dp/B07DCF39NK/
[47] https://www.fastcompany.com/40438926/linkedin-is-testing-a-new-feature-that-matches-you-with-a-mentor
[48] http://www.prnewswire.com/news-releases/realtor-magazine-seeks-entries-for-2017-volunteering-works-mentoring-program-300397408.html
[49] https://www.nar.realtor/sites/default/files/reports/2017/2017-home-buyer-and-seller-generational-trends-03-07-2017.pdf
[50] https://www.realtown.com/blog/Why-Your-Real-Estate-Business-Needs-To-Hire-a-Virtual-Assistant
[51] https://www.acelerartech.com/blog/virtual-assistant-vs-in-house-employee/
[52] https://www.nar.realtor/sites/default/files/reports/2017/2017-home-buyer-and-seller-generational-trends-03-07-2017.pdf
[53] Since chatbots respond immediately, they’ll engage prospects faster than any human can - including you!
[54] https://www.rocketmortgage.com/purchase/get-started
[55] https://www.lenda.com/
[56] https://www.forbes.com/sites/donnafuscaldo/2018/09/26/home-buying-goes-high-tech-as-millennials-become-largest-real-estate-buyers/#5e9455e17774
[57] https://www.redfin.com/blog/2018/02/sight-unseen-in-2017.html
[58] https://www.huffingtonpost.com/danielle-sabrina/rising-trend-social-respo_b_14578380.html
[59] https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends
[60] http://www.conecomm.com/news-blog/new-cone-communications-research-confirms-millennials-as-americas-most-ardent-csr-supporters
[61] https://www.forbes.com/sites/larissafaw/2014/05/22/millennials-expect-more-than-good-products-services-to-win-their-loyalty/#673e26875697
[62] https://www.forbes.com/sites/sarahlandrum/2017/03/17/millennials-driving-brands-to-practice-socially-responsible-marketing/#6e7cf0ae4990
[63] https://www.fastcompany.com/3012568/blake-mycoskie-toms
[64] We’ll see how this changes with Amazon’s acquisition of Whole Foods
[65] https://www.statista.com/statistics/226144/us-existing-home-sales/
[66] We covered other powerful ways to differentiate yourself in the Agents chapter. But, in my opinion, social responsibility is the best way to achieve meaningful and lasting differentiation.
[67] https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
[68] There is a great online tool for real estate agents to predict someone’s probability of moving. Although this isn’t yet available for in-person use (as in this example), such technology is likely to be available soon.
[69] https://www.voiceterpro.com/ is one great example
[70] https://www.cnbc.com/2017/08/24/technology-killing-off-corporations-average-lifespan-of-company-under-20-years.html
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