BrokerPulse

RealTrends Q4 2021 BrokerPulse: Office consolidation, boosting agent productivity and core services capture rates continue…

2021 Website Rankings Now Live!

RealTrends website rankings highlights the top real estate websites across the country in 6 total categories for our annual brokerage website rankings.

Real estate teams vs brokerages

Steve Murray and Tracey Velt discuss the profitability of real estate teams vs brokerages, based on the results of the 2021 RealTrends Team Profitability Study.

Study: It’s true, real estate teams outperform brokerage firms

Surveyed real estate team gross margins were an average of 61.8% compared to an average of 13.8% for real estate brokerage firms.

A Different View – Will Tech Kill the Industry?

I had a conversation with a young woman who has a senior level position in our industry and almost 12 years of experience in our business. I asked her what she thought about the screaming voices about how technology will kill the industry in some fashion or another. She had an interesting view.

She said, “I don’t think there is a lot of unhappiness with real estate agents or teams. Certainly, they are not all perfect, but most consumers we have worked with or encountered are fairly well satisfied with their agent’s service. Communications could improve, but, overall, consumers seem pleased.”

She went on to say that what consumers aren’t pleased with is the process—the mortgage, closing costs and fees, title insurance, inspections, etc.  She says, “Their dissatisfaction is far more focused on the complexity, time it takes, and the number of different parties involved to get a purchase or sale completed. Many young buyers and sellers, I think, are unhappy about that part of the process.

“I think the industry would be well served to use technology to get all the different platforms together into one seamless system that could lower the complexity, increase the access to transactional data and, in some ways, lower the cost of buying and selling homes.”

I think she is on to something. Are we looking at the challenges correctly? Is it perhaps true that it is not the agent where the problem is but rather the multiplicity of service suppliers and the lack of any real integration of each of them that causes anxiety and dissatisfaction? We are launching a consumer study with The Harris Poll folks—with whom we have done six prior consumer studies—to find out. This study will be a continuation of the study we have done for the past 17 years or so with the goal of tracking behaviors and attitudes of recent buyers and sellers.

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Is it wise for PropTechs to undercut the real estate agent?

Given this, it is unfortunate that so many PropTechs are birthed on the notion of disruption, disintermediation, dismissal or depreciation of the real estate agent.  

Nov 24, 2021 By