Industry Disruption and The Dawn of Discount Real Estate Brokerage
Disruption. It doesn’t sound like such a pleasant term. Most of us regard disruptions negatively as an interference to whatever enjoyable activity that we are participating in. This could range from a disruption to our much-needed sleep to a disruption in our internet service. None of these are welcomed. As a definition, the term refers to the interruption of the normal course of something. Most people do not like change, but challenging the status quo is necessary for growth and improvement. Could a major industry disruption discount real estate brokerage for the everyday consumer?
Industry Disruptions of Times Past
From the 1800’s to the 1990’s, the Kodak brand was the forerunner and the big name that everyone looked to for cameras, photos, and anything photograph related. Then a disruption happened. The introduction of digital photography and later the introduction of cell phone cameras changed the face of the photograph industry. Kodak failed to consider the extent of the impact of the newer technology and it nearly put them under.
Remember the days of visiting a Blockbuster location to rent a few VHS tapes for an at home movie night? Today’s upcoming generations will never know the concept. Yet, Blockbuster was the big name in movie rental from the 1980s until their bankruptcy in 2010. Another disruption. Netflix took the movie rental industry by storm with the new concepts of mail order movie rentals and their streaming video service. Unlike Blockbuster, Netflix didn’t stay comfortable but instead continued to evolve, adapt, and change according to the newest available technology. Blockbuster failed to anticipate and keep up with what consumers wanted.
Innovation is inevitable. Why do some large companies have so much trouble changing and adapting? Perhaps they:
- Get comfortable with the large profit margins
- Fail to put investment into innovation
- Think they are too big to touch
Regardless, it is imperative that every business remember that current success is never a guarantee of future success. Consumers call the shots and when they start demanding change, businesses must keep up. It is time for home sellers to start demanding discount real estate brokerage.
Change Is Coming for Real Estate
Technology changes our world and how we do things. It improves convenience and decreases cost. We have seen it in times past and it is still happening today. Now there is a big change on the horizon for the real estate industry. Just as we have seen other industry norms disrupted or displaced by technological advances, the same is happening within the real estate realm. We believe that the result will be discount real estate brokerage across the country.
As a veteran real estate agent working within the industry for over 40 years, I have seen the progression first-hand. Gone are the days of working with phone book style listing catalogs and Polaroid pictures. These now outdated methods used to make finding buyers and showing properties a Herculean task. The influence of modern technology has provided newer, faster and more efficient ways to market properties. Modern real estate agents are doing less, yet they are still receiving high commission margins. Why the commission portion of the industry is still operating in an antiquated fashion is very perplexing.
In order to see changes, the industry would need to reform itself from the inside out. Changes are slowly beginning to emerge as consumer awareness is increasing. Newer generations are coming up that are more brand agnostic. The writing is on the wall for the Goliath real estate brands and unless they begin adapting, they could see losses. It is time for a major disruption to the status quo within the real estate industry. But what does this really mean for you as a buyer or seller?
The Power Is In Your Hands Now
It is the everyday consumer who will benefit from an industry disruption. It is the consumer who now has the power to choose which company will succeed. It is a well-known economical truth that competition in the marketplace results in better value for the consumer. Historically, the power was with the big brands that ran the show. Now, if they don’t evolve fast enough, they could easily be pushed out. Modern technology makes way for smaller companies to successfully challenge the big guys by offering better value, service, and experience to the consumer. Technology has advanced. It is time for the real estate industry to also follow suit with discount real estate brokerage for the everyday buyer and seller.
Ready to sell your home in Westchester or Putnam County? Contact us today for our industry disrupting and completely transparent 3% commission rates. You receive our award-winning full-service discount real estate brokerage. Let us wow you today.