Food for Thought about New Economies

Food for thought …

A couple stories and trends that I’m trying to work through as they apply to real estate: Tesla and Uber/Lyft:

Tesla, the groundbreaking electric car company is slowly but surely breaking down archaic, consumer-unfriendly barriers to being able to sell their cars direct to consumers, and Tesla is in the midst of building a new infrastructure through which to distribute the fuel for their vehicles.

Uber/Lyft, brand new to Charlottesville, have seemingly led to a 65% decline in cab use in San Francisco.

The real estate world has its own parallels – real estate agents (some are middlemen, some are critical advisors), MLS (the infrastructure) and the shifting dynamics of ownership (do we really own our iPhones) and motivations to buy homes (see: millennials).

I’m not yet sure where the real estate world is evolving, but it’s going to be different in 18 months than it is today.

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  1. Simon Campbell September 18, 2014 at 12:26

    Interesting comparison. Just like electric cars, the real estate industry is bucking against the introduction of a more internet driven market where the buyers have greater access to data. I can see that real estate agents are going to have to step into more of an educator/advisory role.

  2. Jim Duncan September 23, 2014 at 05:27

    What does this even mean? I’m inclined to delete this comment unless you can state something substantive.

    1. New Vision Home Sales and Real September 24, 2014 at 06:38

      What I was trying to say is that since people are drawn in internet and smartphones, we as real estate agents must be creative in order to present our properties for sale.

      1. Simon Campbell September 25, 2014 at 18:35

        Oh, I get it. Maybe they should dress in a smartphone costume when showing houses? LOL There’s a mental picture… as they leave the house the realtor says “Call me.” Sorry couldn’t help myself. But it is true, agents that do not use and promote technology are falling behind.

  3. Jim Duncan September 23, 2014 at 05:32

    Mark – you’re exceptional. Until more buyers are willing to pay – directly – for the services you outlined above, I don’t see the status quo changing significantly.

    I’d say:

    (Most of the time, a good real estate agent) earns his 3%, like if he shows you dozens of homes, writes several contracts, and lends his expertise for free over several months before you finally find a house.

    But most of the time doesn’t account for the fact that so far this year, only about 300 Realtors have done at least 4 sides … there are exceptions here as well, but if you’re not doing at least 10 sides a year, you’re less likely to be competent and capable of representing clients.

    So tell me, how to convince buyers to pay an hourly fee on a non-contingent basis from Day One?


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