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Due to changes in basic rules, real estate intermediaries and real estate intermediaries are forced to review business models and scale, but the change is a radical rebuilding in which hundreds of thousands of brokers are withdrawn from the business. There is a high possibility that it will be gradual.
This is the perspective of franchise, securities companies, and technology leaders who shared their opinions on the last day of Inman Connect New York on Friday.
Zillow’s highest industrial development officer, Eror Samuelson, was surprised that the U.S. Real Estate Association had about 750,000 members when he entered the real estate industry. Despite the improvement of productivity by tools such as electronic forms and electronic signatures, the number of NAR members has been almost doubled since then.
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Eror Samuelson
“I think the reason why the integration is not seen is that consumers are greatly increasing. We live in a kind of on -demand economy,” said Samuelson. “People are now used to digitizing everything, so we are now expecting agents to have different levels of services and response.”
CEO, CEO, said, Philip White, the president of Sazabies International Realty: “The barriers to entry into this business are quite low. If you look at Netflix, the business looks very attractive and everyone earns $ 1 million a year and is on the Bentley, so people are drawn to this industry. “
If a non -productive agent chooses to withdraw from a business, the number of agents will decrease, but “we have expected so.” [for a long time]But that’s not actually happening [and will not] As long as we don’t realize it, “White said.
President Ginger Wilcoox, President of Bettate Holmes and Gardens Real Estate, to gain more market share for franchiser executives with more business complexity and changes. He said that the number of agencies would decrease.
“There are still many enthusiasts in this universe,” said Wilcox. “I think there is still that kind of thing, but when I look at the place where transactions are mainly today, most are. [are handled] Probably sold by 500,000 agents, and the agents that are already doing their business will continue to take over their market share. “
It is the securities company level that integration is starting to occur.
Ginger Wilcox
“In fact, most of my day is spending on discussing how to trade with Brokers,” said Wilcox. “As the industry continues to evolve, small brokers need to consider ways to increase profitability, but they often have a scale.”
Another factor in the integration is that many brokers are approaching retirement and thinking about how to plan their successors.
“They are aging, and they are not necessarily inherent in the securities company,” said Wilcox.
Mr. White said that the merger and acquisition had been reduced due to high interest rates, and “it has not been so large in recent years.”
But White believes that small securities companies are struggling to meet the demand for top agents, marketing and services.
“I think it will create opportunities,” said White, and Sazabies said, “I’m looking for a financial and strategic meaningful opportunity.”
CLELIA PETERS, a moderator of Era Ventures, asked the panel of which business model expected to be the winner.
Clearia Peters
“Obviously, there are actually full -service brokers, and the tension in the model has increased pressure on fees, and the demands of agents have increased in the meaning of full service.” He said. “There are fees -based intermediaries, discounted brokers, large teams and individual intermediaries. Do you think the market will continue to provide many options, or do you think the following integration will be performed? ?? [particular] What is the business model? “
Wircox said that the needs of consumers and agencies were different, so there would always be a place suitable for various models.
“You can see that the agencies are looking for more, just as consumers seek more, so they still need perfect service in terms of things that brokers can provide. Wilcoox said. 。
Mr. Samuelson quoted a recent Zillow survey, which was found to be fairly fair for the seller and 70 percent of the buyer, and the commissions were as under pressure as people thought. He stated that it might not have been, and 7 % of the seller and 9 % of the buyer said: The commission was too low.
“In other words, 80% of consumers say,” I think the value I have gained is wonderful, “” says Samuelson. “Therefore, I think the full service model will continue to be the main model of the industry.”
As a comparison, consumers say, “I hope that agents will respond to them all year round, and we expect that they will be able to receive that level of services at the full price,” he warns. did.
White agreed that it depends on the agent, which is appropriate for them, whether it’s full service or paid.
White operates a full -service business, but “understands how to cooperate with a major office and requires a lot of discipline,” said White.
Philip White
“Paid [model] It may be attractive for some agents. What we want to point out is that you should be sure to find out the company you join. Is it possible to increase the average selling price? Can we reduce transactions, make more money, and get better quality of life? We are there rather than differences in opinions. Despite being very competitive, the agent is looking at what he will do in the end. “
Samuelson said that the transition to the team would continue, and the middle brokers would expect a “share shift” for “very efficient and highly productive top agents.”
White says that luxury goods are “not necessarily suitable for large teams”, but Sazabies has a “very successful team” and will be even more active in adopting the model in the future. He said.
“Integration is basically an acquisition of a team. We are currently working on such models.” “We are offered an offer and we are negotiating while talking.”
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