"Today's customers are increasingly calling the shots, so understanding how the Internet will affect the consumer's behavior has become increasingly important."
Stefan Swanepoel, leading real estate visionary, has authored a new book, "Real Estate Confronts The e-Consumer", which provides yet another wake-up call to the real estate industry coping with dramatic changes in their business profits and business models.
Swanepoel tells us that within the next five years real estate agents will become "analysts, interpreters and counselors" of the information, no longer serving as the gatekeepers. Citing Dr. Michael Abelson's Latest Top 100 Trends 2000-2003 Study, which will be published in his next book, Real Estate Confronts the NEW Models, he highlights five new mega trends:
- Bigger Brokerage (Big Wall Street money has come into the industry. Cendant has bought up various major real estate franchises.)
- Digital Era (The more sophisticated agents embraced hardware, software and systems and hired assistants instead of setting up brokerage companies. Fewer agents are making more money.)
- The Internet (Consolidation of listings, creation of web sites, more marketing on the web.)
- Support Services Elongation (Large, well-financed companies started to get involved in real estate.)
- Consumer Relationship Control (Sophisticated referral systems sprang up, mortgage banking companies entered the industry, integration of the entire home ownership process, long term and committed relationship with the consumer.)
The Top Trends Study for the period 2000 - 2003 revealed that the consumer "demands better, more knowledgeable and professional agents" and "look to the broker/agent for everything that touches the home ownership experience." We can expect complete electronic transactions, according to the predictions of industry experts as well as seeing the number of offices decline.
The aging population and desire for second homes will create a shift in markets during this period and the Internet will play an ever increasing role in home searches and transaction processing.
Swanepoel also analyzed over 500 online companies to create the Top 75 list to help real estate professionals "develop greater insight and understanding into the many initiatives the real estate e-world has to offer."
The list of 75 includes, but is not limited to,Cendant, zipRealty, HomeServices, NewHomesDirect, HomeAdvisor, Realtor.com, LendingTree, CloseYourDeal, Homebid, Improvenet, Domania, TitleWeb, VirtualRelocation, and IRED, among the original 500 contenders.
And no book about the future would be without the predictions of visionaries. They are in there:
Dr. John Tuccillo, Michael Russer (Mr. Internet), Terence McDermott, and Steve Ozonian. They discuss technology, transformation, a federal agenda, RESPA reform, electronic signatures, and automation. What a great way to start this new millennium - mulling over the predictions of the industry gurus!
Swanepoel is co-author of Real Estate Confronts Reality (with Tom Dooley and Michael Abelson) and Chairman of the Associates Group, iProperty and 9Keys. He previously served as vice-president of ERA in California, and senior vice-president of Cendant. He was honored as one of America's "Movers and Shakers" by Today's Realtor in 1996. Prior to his relocation to the United States, he was credited with establishing the largest residential real estate brokerage in Africa in 1993.
Pat Rioux
