What does organized real estate look like in 2030? Who is winning?
Incumbent brokerages are betting on the recruit-and-retain model that has worked for the last several decades, doubling down on the agent’s sphere as their primary source of leads. Disruptors are betting on a world where the agent matters less than the brand itself, where realtors are only responsible for service delivery and leads are generated entirely through the institution’s online platform. Who is your money on?
In this episode of Industry Relations, Rob and Greg are discussing the themes that came up at Inman’s CEO Connect and the confidence incumbent brokerages have in their ability to outlast market disruptors. They cover the advantages incumbents boast in terms of scale and profitability, exploring whether industry giants are truly all-in on technology and the iBuyer models—or if they’re adding those initiatives simply to overcome agent objections.
Greg and Rob go on to consider a potential decline in the number of agents by the end of this decade and explain why agent teams continue to pose the greatest threat to brokerages. Listen in for insight around how key players in other industries have leveraged the power of incumbency to compete with disruptors and place your bet on either the agent-centric incumbent brokerages OR the institution-focused disruptors.
The advantages incumbent brokerages have in terms of scale + profitability
Adopting new tech as a marketing ploy to bolster a brokerage’s value prop to agents
Why many brokerages chose to partner with rather than acquire iBuyers
Why successful brokerages can do everything right and still lose market leadership
How key players in the automotive industry have leveraged the power of incumbency
The fundamental difference between real estate incumbents and disruptors
How the future of real estate will continue to be dominated by agent teams
Why the number of agents is likely to drop to 400K by the end of the decade
Connect with Rob and Greg:
The Innovator’s Dilemma: The Revolutionary Book That Will Change the Way You Do Business by Clayton M. Christensen
John Campbell on The Notorious Interview
At present, MLSs are run like nonprofits. And without a way to raise capital, industry executives limit their vision based on the resources at hand. But what if there were no constraints? What kind of Big Hairy Audacious Goals could MLSs pursue with funding from deep-pocketed venture investors?
In this episode of Industry Relations, Rob and Greg are challenging MLS execs to consider what they would do differently with access to significant capital. Greg weighs in on the discussions around implementing the MLS Statement 8.0 Clear Cooperation Policy (otherwise known as Ocho) that took place at Inman Connect, describing how the differences among individual MLSs will inform its implementation.
Greg and Rob go on to discuss how the challenges associated with switching MLS vendors benefit incumbents and why most MLSs adopt a system of choice approach to consolidation. Listen in for Rob’s take on how MLS execs constrain their vision based on the resources available and take up Greg’s challenge to think about what you would do differently with $5M, $50M or even $500M.
The discussion regarding how to implement the Clear Cooperation Policy at Inman Connect
How Ocho impacts Compass’ strategy for differentiating its listings
How the differences among MLS Coming Soon policies will inform Ocho’s implementation
The possibilities for interpretation around what qualifies as marketing
How the challenges associated with switching vendors benefit incumbent MLSs
What’s behind the system of choice approach adopted by most MLSs
Why Rob contends that MLS execs constrain their vision based on resources
NAR as a trade organization vs. the MLS as a tech product + service provider
Greg’s challenge for MLS execs to consider what they would do with access to capital
Connect with Rob and Greg:
MLS Statement 8.0 Clear Cooperation Policy
Homesnap Pro’s Predictive Analytics
Rob’s Post on the Clear Cooperation Policy
Rob’s Post on the Fundamental Problems in Real Estate
Business Insider Top 15 Real Estate Podcasts