Brokerage Models, Consumerism, REALonomics, Technology in RE
(M+C+A+LI)-(B)=X
December 7, 2006 by REALonomics · Leave a Comment
In what some have interpreted as a direct challenge to the 100 year-old Multiple Listing Service, Zillow announced today that they would begin to allow consumers and agents to post listings in their market model.
My opinion comes later in this blog. For now, have you noticed the REALonomics in Zillow’s formula? It’s a mathematical real estate equation:
(M+C+A+LI)-(B)=X
REALonomics is a reality. There is a new economic model emerging that will shape the real estate industry in profound ways and the model formula may exclude the broker/owner.
Here’s the formula:
Markets + Consumers + Agents + listing inventory – brokers = X
This formula should be interpreted where the resultant value of “X” = HELLOOOOO!
My expectation is that throughout the day and into next week there will be a plethora of responses from every corner of the real estate universe having any interest in the outcome of the real estate Jihad. You will hear everything from accolades to jeers, shouts and tears, but there is, in my opinion, no stopping of the train moving down the tracks of the New Real Estate Economy.
Could it be true that while NAR is hunkering-down under the barrage of the DOJ investigation and lawsuit, seemingly unraveling at its seams, the state-of-the-art in RE is blazing past the notion of local Multiple Listing Services as the chief provider of controlled content to consumers in specified markets? Hmmm.
REALonomics, as a discipline, must look at all factors in determining what models are emerging and setting forth the principles that will define the real estate industry’s business blueprints in the Third Economic Wave, the Consumer-Centric Era.
The development and implementation of a future online listing service is already a fact…so, let’s just face that reality and move on. What is not so certain is the role and influence, if any, that Broker/Owners will have in the new models that are emerging. It’s clear to me, initially, that Zillow’s model, while certainly pandering to Brokers, is a model that may well operate exclusive of Brokers.
The inability of NAR and local Associations (their chapters) to bring Broker/Owners cost-effective and streamlined marketing solutions in a Consumer-Centric Era, is not just annoying, it’s a tactical economic error. The Northwest Broker/Owners got it right…they pulled out of Realtor.com for one simple but profound reason…economics!
The model of the future is going to be an open market, freedom model, driven by the consumer as the chief architect in the remodeling of the real estate industry. Market models such as e-Partner, deliver markets back to owners, for their control and use in recruiting, business development, branding and consumer conversations through a vast network of seamlessly integrated market places.
Technology has taken root, via the Internet. This is REALonomics and a redefining of fundamental business models within our industry.
Clearly, (M+C+A+LI)-(B)= HELLOOOO!
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