Brokerage Models, REALonomics
REALonomics: RE Model Math
November 16, 2006 by REALonomics · 1 Comment
REALonomics is the science and art of understanding and applying Friedman’s flat world realities to our real estate brokerage business modeling in order to produce streamlined, efficient and highly profitable new models.
REALonomics.net sets forth discussions and modelling regarding the real estate industry’s opearating models utilized in “The New Real Estate Economy.”
REALonomics is the science and art of understanding and applying Friedman’s flat world realities to our real estate brokerage business modeling in order to produce streamlined, efficient and highly profitable new models.
It could be said that my use of REALonomics is designed to be a real estate subset of business modeling, asset definition and identification, general economics and applied accounting principles.
Truth be told, the real estate industry is mostly devoid of what we really need most; fluid REALonomical models that shift and pivot on the axis of profitability when the circumstances call for, no, I should have said, demand course correction.
The real estate industry has little to offer in the way of REALonomic business models and is anything but agile with respect to turning the sharp corners demanded by a consumer-centric culture. REALonomics, however, has always existed, yet never been coalesced into formats applicable to the ever-changing contemporary market conditions. It is the fusing or unifying of economic principals for the real estate brokerage industry that creates REALonomics.
The REALonomics paradigm takes into consideration at least three contemporary factors:
- Market factors.
- Technology and the Internet.
- Consumer behavior.
Allow me to briefly elaborate on each of these factors.
Market factors are the existing conditions encompassing a particular transaction or set of transactions in a given locale, bringing to bear the myriad factors influencing brokerage operations and outcomes.
Technology and the Internet in any prevailing era of real estate act upon the industry as the alchemy for new models and profitability. The transitions from the first economic wave to the second economic wave within the real estate industry were predicated upon shifts in technology and the introduction of the Internet into the model-mix.
Consumer behavior and it’s inherent demands have combined and surged to the forefront, in this the third economic wave of the real estate industry, placing unparalleled pressure upon old-line, territorial and protective models. These traditional models are being forced to blend into open market freedom environments that empower the consumer. This is the consumer-centric era, coming on the heels of the agent-centric era.
REALonomics.net is dedicated to the creation of a think-tank for crystalizing the core principles associated with real estate business modeling in “The New Real Estate Economy.
We are in the business of seeking explanation and clarification with respect to how and why real estate companies do and should operate for maximium consumer interaction and profitability.
REALonomics.net seeks to provide a haven to gather and gel principles and concepts that are forming the new economic framework that will have appicability to the real estate industry’s business modeling.
I openly challenge the notion that 2+2 will always equal four and the real estate company owners can simply "do the math" and expect that having done so, their model will produce a predictable and acceptable ROI.
REALonomics is a new “model-math” within the The New Real Estate Economy.
And your thoughts are…?
Copyright © 2006, REALonomics®, L.L.C. All rights reserved. “e-Partner” is a registered trade name of eParnter USA, Inc. Use of “e-Partner” is governed by separate license agreement and such use is not granted herein. Patents Pending. For information about us visit us on the web at e-Partner or, you may email us or call us toll free at 877-380-1000.
Related posts:
Static, electronic billboard websites of the past won’t suffice in tomorrow’s new architecture of mass consumer participation.
In today’s digital transformation economy, where anyone, anywhere can have access to and publish their own data as individuals a concerted effort must be brought to the real estate industry to protect the traditional real estate model from being corrupted by the non-brokers and others seeking to profit from our professionally regulated industry.
Thus, in order to preserve these markets, we must stay ahead of the technological curve bearing down upon us.