Dear Monty: I have been a real estate agent for 15 years. Like some agents I know, I may decide to leave the industry. It’s long, irregular work hours, arguments with agents about who “owns” the client, unethical tactics, incompetence, and more. Consumers don’t see the dark side of real estate. I haven’t seen anything that makes me believe that technology will change things. What will the job of an agent be like in five years?
Monty’s answer: The Internet has changed consumer behavior over the past 20 years. Expectations are rising for smartphones, apps, new market platforms, and more. One way he sees what’s going on is by noting the frequency of Amazon delivery trucks in his neighborhood. Twenty years ago, no one would have thought to buy a website for a refrigerator that wouldn’t show up on your computer and have it delivered to your door, and no one would have thought that Jeff’s Bezos’ idea of selling books online would work. I wasn’t thinking about it. Many consumers now expect to shop for everything online and have it delivered to their home. No one knows what will happen in the real estate industry, but by studying the past, you can make educated guesses.
Why predictions are difficult
Consumers have become more adaptable to technology and are now searching for comparable properties online when buying or selling a home. More sellers selling directly means more buyers buying directly. Today, home buyers do all their searches online, but until recently, they had to contact a real estate agent to get into a home. An agent opens the door. The homebuyer has purchased the home, but the agent feels he or she is earning little in real commission. This is why real estate consumers complain. The value of an agent’s service is diminished because data is available from sources other than the agent. Complaints take unusual forms as the industry resists. The $5 billion judgment against the National Association of Realtors is a prime example.
Here are some examples of recent advances. Nock’s company created bridge loans to eliminate the friction of conditional offers. Opendoor eliminates the friction of real estate agents and makes selling your home easy, fast, and stress-free. They do this with a cash offer and hire an agent after you move. His PropBox, a company in which the author has a financial interest, is a media advertising marketplace that connects home buyers and sellers directly, with a small advertising fee for six months of his interactive web pages within the platform. can complete the entire sale. PropBox represents a new alternative to selling by agent or owner.
Two scenarios that could play out
Number 1: No favorable work hours, no customer service job description, no personal expenses, no standard compensation, no positive co-workers, no platform rules that benefit the consumer, no prospecting. They are no longer real estate agents, but customer service employees. Sign in and work whenever you want, and sign out to stop. They work remotely using company computers. These jobs already exist.
Part 2: For home sellers and buyers who prefer in-person, personalized service. These independent contractors do the home seller’s 10-12 hour job with time spent on onboarding, showings, or shared decision-making options that customers can choose from. There is a fee separate from PropBox.
Richard Montgomery is the founder of PropBox, the first advertising platform to directly connect home sellers and buyers to negotiate and close sales online. He provides readers with a choice of solutions to real estate questions. Follow him on Twitter(X) @rmpropbox or DearMonty.com.
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