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Old 05-08-2018, 11:03 AM
 
698 posts, read 437,377 times
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I'm not stating that AI is the new way to sell real estate (it's certainly interesting), however, how is using targeted demographics(for lack of better wording) gathered through data points ineffective? It's a marketing tool used all the time, real estate is one of the largest "markets."
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Old 05-08-2018, 12:33 PM
 
Location: Salem, OR
14,028 posts, read 32,966,214 times
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Quote:
Originally Posted by photogal9 View Post
Interesting article pertaining to the OP:

https://realestate.usnews.com/real-e...onal-brokerage

A portion that resonated with me:

"Across the board, companies breaking away from the traditional brokerage model expect new tech innovations to continue to be a significant part of the home buying and selling process.

However, as buyers demand more transparency and seek a greater level of control throughout the house hunting, negotiation and closing process, the traditional model may begin to feel more antiquated and less like the norm. Strand points out quick adoption of technology company wide largely “hinges on having this team of employees,” rather than having independent contractor agents.

Until then, the companies offering an alternative brokerage experience are continuing to grow. Redfin is undergoing vertical growth by beginning a mortgage platform, currently in its infancy in Texas. Local firms like Trelora and Triplemint are seeing success in their markets and have plans for future expansion. The greater variety of options can only be a positive as you look for the right company to represent you in your next real estate deal."
If I was going to pick one thing that would disrupt the real estate industry, it would be making agents employees and not independent contractors. If that was the case you would see a massive, massive shift in the industry.
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Old 05-08-2018, 01:09 PM
 
Location: Northern Maine
9,779 posts, read 14,973,555 times
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"Periodically someone here will mention some "new" kind of brokerage or scheme of doing business. Typically my response is that it's nothing new, etc.

As I was watching the news a few nights ago I watched a story about about a newer company. They use AI and Machine Learning to micro-target potential buyers online. They don't list in the MLS.

https://www.cnbc.com/2018/03/20/arti...te-agents.html"

There are about 287 real estate marketing models. I have been doing this for 29 years. The "model" changes with the economy, interest rates, drought, snow, large industrial business closures, new factories and political changes.

For example, there were once seven paper mills on the Penobscot River in Maine with over 10,000 families employed directly in the mills or providing raw material to the mills. All are gone. One could still start up again, but the other six are GONE; as in not there. This economic disaster has been duplicated in various industries all across the country from coast to coast over the last eight years. 287 marketing models is not an exaggeration. Drop 50 mile radius circles all over our country in all 50 states and these micro-economic regions will demonstrate their disparate conditions very readily.

Timber, soybeans, mining, natural gas, cotton, rare earth minerals, fracking and construction of all kinds are dependent on and producers of local economies. This is a real estate thread. Any broker unable to understand the local economy cannot effectively serve either buyers or sellers.
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Old 05-08-2018, 01:09 PM
 
1,528 posts, read 912,064 times
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Consumers are generally the biggest force for innovation and related cost reduction in any industry. Their demands cause the cost to consumers to reduce while causing the value received to increase.

If consumers didn't care, nobody would invest in making anything better.

The problem with buyer's agents is that buyers perceive it to be free as that's what they are led to believe. Nobody is too bothered about how much value they receive from things that they get for free.

So until buyer's agent costs are paid by the buyer, there will be very little innovation in this area and very little incentive for agents and the industry overall to improve things or reduce costs. Simple principles of economics. When the buyer pays, they will demand much keener pricing - pay for only what they want/need, 'right pricing' (if a clerk should be doing something, the cost should be for a clerk). And, importantly, they will also demand a much higher quality of service and a much clearer view of what they are paying for (no more vague "we look after you").
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Old 05-08-2018, 01:59 PM
 
Location: NYC
12,964 posts, read 8,783,224 times
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I don't think traditional RE model will go away, the problem is a lot of people usually buy more than what they think they can afford. The next recession will once again be RE related if a business disruption causes a layoff anywhere there will be another wave of foreclosures.
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Old 05-08-2018, 02:15 PM
 
Location: Just south of Denver since 1989
10,920 posts, read 29,431,570 times
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That has been done before in my market and wasn't profitable in the long run.

This Brokerage paid for marketing both for the agents & the property. But, when days on market grew they did not layoff the lower producing agents spending their resources and their money. Ultimately, the model failed and 120 agents had to sign IC agreements and their "income" disappeared and their expenses were no longer covered.

In Colorado, the Real Estate Commission "says" we are employees of the Brokerage. We have to choose an "Employing Broker" in order to be licensed.
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Old 05-08-2018, 02:20 PM
 
Location: Northern Maine
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No wonder people are fleeing Colorado.
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Old 05-08-2018, 02:47 PM
 
Location: Just south of Denver since 1989
10,920 posts, read 29,431,570 times
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Quote:
Originally Posted by Northern Maine Land Man View Post
No wonder people are fleeing Colorado.

Not true.

According to the Colorado Department of Demography - we have a net in-migration of 100,000

https://demography.dola.colorado.gov...-state-regions

Besides - weed is legal, no reason to leave.
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Old 05-08-2018, 02:50 PM
 
Location: Cary, NC
33,659 posts, read 58,449,590 times
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Quote:
Originally Posted by Silverfall View Post
If I was going to pick one thing that would disrupt the real estate industry, it would be making agents employees and not independent contractors. If that was the case you would see a massive, massive shift in the industry.
Yup.
And we'd see a lot more single-broker indies.
I neither want to be an employee nor have employees.

The current arrangement with Statutory Nonemployees is nearly perfect, IMO.
https://www.irs.gov/businesses/small...y-nonemployees

It will take a major revision to that IRS standard to make W2 agencies competitive, let alone market dominators.
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Old 05-08-2018, 03:02 PM
 
Location: Columbia, SC
9,097 posts, read 18,104,795 times
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Quote:
Originally Posted by vision33r View Post
I don't think traditional RE model will go away, the problem is a lot of people usually buy more than what they think they can afford. The next recession will once again be RE related if a business disruption causes a layoff anywhere there will be another wave of foreclosures.
There are 2 types of "traditional". The first which the public considers is how they interact with the agent. The second, which agents will consider, is how companies operate.

For #2, there have been many changes over the years. The old standards of the Realogy (C21/ERA/CB) brands are in trouble if they don't change IMO. It may be 10 or 20 years down the road but competition will force them to adapt or die. There are newer models that pay the agents better like KW, RE/MAX and even newer models offering less pay but a more fixed income like Redfin. There are companies that basically house a license with little to no training or help offered for very low fees or transaction fees.

The latter, IMO, is the biggest "threat" to agents. They generally have many poorly trained agents with little or no oversight. As a result the consumer has bad experiences. When consumers have bad experiences or think they can do it better they stop hiring agents. So incompetency is the biggest threat to the industry and those companies foster incompetency.

Not all disruptions are good for the public.
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