REALonomics has spent a great deal of time articulating the historical flow of the real estate industry. In so doing, we have clarified the so-called “flow” of things economic, demonstrating that the business models are in constant flux, evolving to every higher life forms. The Broker-Centric era gave way to an Agent-Centric era, which now is giving way to a Third Economic Wave, the Consumer-Centric Era.
e-Partner is one of the fascinating Consumer Centric Era economic models that empowers owners to create market management models that allow them to penetrate the horizontal markets, recruit office-less agents, engage in multi-market branding and creative business development strategies.
In effect, e-Partner is a total market model that blankets the entire country with State and local Community-Based Website (CBWs) that allow real estate company owners to expand their market influence and presence to literally every city in the State where they do business. The model ignores vertical market definitions, opting instead to allow broker/owners to do what most departments of real estate empower them to do, operate statewide.
The title industry has long opted to sell directly to intermediate influencers while ignoring end users. The industry incorrectly assumes it’s product to be information. The misconception was spawned by an inexplicable affinity to remain physically and emotionally distant from consumers. The title industry, in fact, sells only credibility and the absence of consumer-centric title models proves that this nuance is not generally perceived.
The arcane concept known as reverse competition has created tiers of imbalances within markets as well as structural inadequacies within the industry itself. The greatest of these issues: The title industry and the consumer know very little about the other. In markets with expectations of honest and continuous business chatter, the self imposed seclusion of the title industry has fueled a public suspicion of skeletons in the closet. The paradox: a retail industry of the store front variety that has never met its customer.
The contemporary model encouraging title company ownership by real estate companies will soon face economic challenges. Income streams produced by internally processed title orders will lose velocity when confronted with heightened scrutiny by consumers and governmental agencies.
The lucrative profits currently used to finance a “brick and mortar mentality” among corporate executives are also needed to lubricate a false sense of security and high percentage commission splits for real estate agents. As the model’s machinations de-accelerate, effective and appropriate business models will elude the title industry’s grasp due to the anonymity of the consumer.
It looks like some Internet visionaries just don’t fit the mold. Or, perhaps, the mold is now being broken. Or, worse yet, maybe there is only one mold at Prudential Real Estate Affiliates (PREA), into which all brokers must be poured…PREA’s. Is the insecurity inherent in our models finally exhbiting its pathos in ways akin to the melt down of Brittany Spears?
Everyone on the inside of the real estate industry’s news networks is buzzing over the Prudential ouster of Zillow and Trulia from the San Diego Real Estate Conference of Prudential Real Estate Affiliates. Inman News reports brokers in “dismay” over Prudential’s insistence that Zillow and Trulia pack it in and hit the road…20 minutes prior to show time!
REALonomics predicts the damage controllers are going to be out in force.
The Bad Business of Messing with Owners
When the likes of Ed Krafchow, President of Prudential California Realty, calls his franchisor to task for “interfering” with his job, you know you have an issue on your hands.
Home Real Estate is the premiere recipient of the REALonomics Model Perfect recognition for real estate brokerage business models. More will follow. In fact, nominations have already started arriving as we engage in the Quest for Model Perfect. Although, we speak of “perfect” the true emphasis should no be on an unattainable flawlessness but rather, we should emphasize “quest” as the imperative. The Quest for Model Perfect is about the journey not the destination.
Real World Modeling
Perhaps the most accurate description of Home Real Estate’s model is that it is just flat out “real world.” There is a refreshing absence of the all too common place bravado and hype sometimes seen in a company’s offerings. Home’s real world approach to business modeling is clearly NOT lopsided, being neither “Broker-Centric” nor “Agent-Centric” (our terms).
Home’s ownership team seems to grasp reality…i.e., we are in a third economic wave of the real estate industry, one that is decidedly different in focus, being market-driven and consumer-centric. There is a keen, sharp edge to their recruiting website and if I were an agent shopping around, I’d be spending some time analyzing Home’s agent offering and setting up an appointment.
REALonomics is engaged in a search that allows us to analyze the real estate industry’s business models in a Quest for Model Perfect and therefore, we begin today to recognize firms and individuals whose companies are exhibiting models and programs commensurate with the New Real Estate Economy and the Consumer-Centric Era.
Model Perfect – the Awards will seek to regularly post an individual or company that we believe the real estate blogosphere needs to know about. There are three categories we will use in granting the Model Perfect status. These are:
- Brokerage Model Innovation
- Consumer-Centric Models
- Industry Related Creativity