realonomics

Bill Gates will stand in the halls of business history as the person who transformed not only technology but entire segments of the business world with an operating platform called “Windows” that dominates the globe with an approximate 90% market share.

Upon his retirement from Microsoft, REALonomics is honoring Bill Gates and his contributions to business and of course, who could question his influence on the real estate industry? Here’s a video from 1992 with some of Bill’s predictions.

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Today, June 27, 2008 was his last day at the helm. No other person in our lifetime influenced technology like Bill Gates, Founder of Microsoft. His Disk Operating System (DOS), Windows platforms and Microsoft Office changed not only business but people and now the world.

Through video REALonomics salutes Bill Gates for his contribution to business and indeed, who can deny, the real estate industry itself.

Below is Tom Brokaw’s interview with Bill Gates about his exit from Microsoft, his influence and his future in philanthropy.

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REALonomics Editorial

There is an old saying, “After all is said and done, more will be said than is done.” The long battle between the Department of Justice (DOJ) and the National Association of Realtors (NAR) was declared “settled” today.

Not so fast! After a reading of the Final Judgment document, REALonomics offers the following cursory observations:

• THE GOOD: NAR cannot prohibit the distribution of full MLS listing information;
• THE BAD: Local Associations cannot engage in unique policies about local listing distribution;
• THE UGLY: NAR must report to the DOJ quarterly…this ain’t over, folks;

After all has been said and done, more has been said…and spent…than done with respect to how the real estate industry under the leadership of NAR has moved from its control model to a transparent model that will unleash the kind of innovation and consumer-centric services we need.

Furthermore, the DOJ has now completed one of its central objectives, to position itselfself as the sole arbiter of real estate property information access, all local associations and members of NAR and more importantly, as we have said before, to eventually control services and commissions.

Mark this down and highlight it: When the DOJ does anything under the banner of “public interest” there is a north and south point of reference, depending on one’s facing. Decide for yourself what this important section of the settlement might mean to the industry, long term and short term (highlights ours):

The big loser here is actually the industry itself, the thousands of broker/owners and yes, temporarily, even the consumer. NAR will remain under the DOJ microscope for some time to come. This entire debacle, we predict, is the precursor to mandated services and commission control. In this case, we hope to be wrong. The solution, we have long contended, is a reinvention of our models, how we use and distribute property information and finally, how we best serve the consumer, our ultimate client.

The settlement serves no real purpose yet! It’s just more of the same old square dancing between NAR and the DOJ. But watch out when people say it means nothing fail to see the overall DOJ strategy fuel by anti real estate indutry sentiment from consumer watch dog groups.

PRINCIPLE: It’s about the MONEY, stupid…commissions. This is just the beginning of a long death march toward more national scrutiny. We are going to tango with the DOJ again. This is not really about VOWs and property information. It truly is about US, the industry and our practices that smell of control and dominance and to quote the DOJ, anti-trust inclinations.

BIG WINNERS: The non-brokers, non-industry innovators and the neo-brokers are the big winners here. The “judgement” is a precursor, nothing more, nothing less. It’s the swinging open of a previously locked door so that we can see what’s on the other side. It’s what lawyers call “precident” and “legal trending.”

BIG WINNERS: Transparent advocates. It will be impossible to thwart the Democratization of Real Estate in an ultimate sense. This decision is like a strand of DNA but not the entire structure.

True, NAR may now face restrictions on its traditional control tactics but there’s more to the story when we recognize that competitors are waiting in the wings to bring open-sourced property information models to the forefront by empowering property owners to do whatever they please.

Our issue as an industry remains completely unchanged. Why haven’t we been able or willing or both to reinvent this industry into a vibrant, consumer-centric model that both empowers users and delivers adequate and sustained profit to broker/owners. The short answer is we don’t know how to do it!

For now we will simply continue the NAR/DOJ dance until one of them collapses. Does anyone think the DOJ will collapse?

READ THE Final Judgment.

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Do you remember this woman? She is the one who filed a lawsuit against a RE/Max agent named Michael Little who she and her husband accused of selling them a $1.2 million home they say was worth substantially less.

See our previous posts entitled Ummel’s Talk, You Decide and Ummels VS Re/Max.

Marty Ummel appeared on national television news programs such as the Today show claiming that she and her husband, Vernon, were deceived by Little in the process of making their purchase.

A jury of twelve (10 women, 2 men) were not convinced and delivered a unanimous decision after a quick two hour deliberation declaring that Little did not breach his duties and was not negligent in his actions on behalf of the Ummels.

Wendi Brick, jury forewoman, explained the verdict by saying, “We felt that yes, he had acted on their behalf, and we felt he met his fiduciary duties as defined…In any kind of purchase, especially one that big – and most of us have had our own situations we’d been through – the bottom line really stops with you. Whose final responsibility is it to sign a contract? It’s yours…”

Little described his feelings by saying, “I feel incredibly relieved and vindicated…it has been more than two years of quite problematic times for me, and I’m happy to get it behind me.”

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Bug! It’s a new real estate franchise brand. No fooling! Although REALonomics cannot address the financial model behind Bug Realty, the brand image has been carefully orchestrated to convey simplicity, frugality and of course, fun for consumers. In this sense, we believe the wearied and worn consumer will easily recognize and identify with this brand. After all, who doesn’t know the Bug?

That isn’t all bad in today’s tired and shop worn real estate industry. The branding concept utilizes the Volkswagen Beetle Bug as an icon. Geek Squad gone realty! The power behind the brand is the natural, built-in consumer predisposition toward the Bug…I’m talking Beetle Bug.

REALonomics would like to recognize Bug! as Model Perfect from the standpoint of their keen attention to new brand creation. Watch for our REALonomics Interview with Bug Realty Founder and CEO, Kevin Seney.

What Bug Realty wants to convey to the consumer is their deliberate lack of pretense…simplicity is the idea behind the message as contracted with the big and brassy brand message of some other franchises.

Bug! touts a no-frills, no-hype real estate model. Bug! agents drive the Volkswagen Beetle in order to drive home (no pun intended) the idea of simplicity and no frills.

Bug! resists the idea of being labeled a “discount” brokerage company, opting instead to convey to consumer that they reduce costs by eliminating things like inefficient advertisement in favor of streamlined operating systems. Bug! agents conduct their business with wireless technology solutions with full access to MLS property information via the Company’s intranet, laptops and of course, cell phones.

Founder and CEO, Kevin Seney, said this about current brands, “Their brands are stale, they’re institutional. The communication they’re sending out to the marketplace is we’re big, we’re fancy, and we sell estate homes. But that image doesn’t work anymore.”

REALonomics congratulates Bug Realty for its marketing design that is truly innovative, fresh and recognizable in an industry that desperately needs fresh paint and new screen doors.

Watch for our REALonomics interview with Bug Realty Founder and CEO, Kevin Seney.

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