There’s no doubt that the real estate industry is undergoing a dramatic shift. And what’s driving this shift you ask?
You guessed it: Millennials.
According to the National Association of Realtors, 36% of all home purchases were executed by millennials. That’s over 1/3 of all homes sold in the U.S. (link found HERE). These buyers are tech-savvy, increasingly reluctant to rely on brick & mortar face-to-face interactions and value speed which technology easily provides. These buyers and sellers start and end their search online, they don’t rely on a listing board in some 250 agent office to get their information which devalues the model of the big-box chains currently dominating the industry.
“As technology continues to bring us closer together, leveraging that technology is fundamental in optimizing a workplace that fosters collaboration and speed across multiple levels. In our opinion, the days of having large offices filled with staff is too cost prohibitive”, says CEO Matthew Gilbert with NextHome Leeward & Company.
Many companies offer a hybrid model that has a small boutique meeting space while the vast majority of their agents work remotely in the field. Others offer a full virtual experience where agents can come together online to discuss their agenda. One thing is for certain with so much emphasis on technology the real estate office will continue to adapt to the market’s needs and owners are more than willing to accommodate. Brick & mortar store fronts are expensive to operate and a large portion of revenue has to be diverted to cover those costs. Besides, without an office to pay for, commissions could become more flexible as more and more adopt this model. What do you think?
Oh, one more thing: NextHome was just featured in THIS article by RISMedis regarding this very topic. Check it out if you have a moment.