Is Your Firm Engaging the New Status Quo?

Like many business, cultural, sporting, academic and social activities, there is a season for real estate industry update and status conferences. During the disclosure season, each of these events adds just a bit more clarity to the ultimate question: What is new regarding real estate brokerage and marketing operations?

With the adjournment of last week's National Association of REALTORS® Legislative Meetings & Trade Expo (AKA Midyear Meetings) in Washington, D.C., the industry's 2015 update season came to a close. During the past 90 days, a plethora of meetings including, but not limited to, Inman Connect, T3, Gathering of Eagles and last week's NAR meetings provided the industry with a glimpse into the current status of a brokerage business and operations environment that has found itself mightily impacted by a wide range of trends, directions, and forces.

There can be no doubt that each of the hundreds of observers who participated, attended and/or evaluated these events came away with a slightly different impression. The industry media over the next ninety days will be awash with impressions and opinions. Be that as it may, there are a number of conclusions that are high enough up the intellectual pole to be universal. The objective of this piece is to attempt to present these new foundational realities.

The following five statements are nominated to head the "most impactive" list:

1. Various presentations by senior industry (as opposed to organized real estate) leaders contributed to an overall understanding that, moving forward, brokerage operations in many ways will end up further afield from the traditional model than previously imagined. This, in turn, leaves a sense that current efforts are in the nature of "getting ready" for the ultimate, rather than being the ultimate.
2. There is an increased understanding at the highest levels that the industry is not maximizing its profit potentials.
3. The current record level of public ownership of industry infrastructure and its demands and expectations regarding profitability is impacting virtually every aspect of the industry.
4. Increased levels of direct and intense consumer interaction are forcing the industry to meet new levels of interactive and experiential demands and expectations.
5. The value propositions of the franchise, brokerage and agent sectors are losing traction in the eyes of their respective customers.