{"id":3239,"date":"2017-11-26T16:40:00","date_gmt":"2017-11-26T20:40:00","guid":{"rendered":"http:\/\/dankrell.com\/blog\/?p=3239"},"modified":"2021-11-23T17:17:17","modified_gmt":"2021-11-23T22:17:17","slug":"industry-disruptors-changing-real-estate","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2017\/11\/26\/industry-disruptors-changing-real-estate\/","title":{"rendered":"Industry disruptors changing real estate"},"content":{"rendered":"
\"Reat<\/a>
Reat estate industry disruptors (infographic from nar.realtor)<\/figcaption><\/figure>\n

Buying and selling homes hasn\u2019t really changed much over the years.\u00a0 It still requires a buyer and a seller.\u00a0 Getting them together often requires a real estate agent or broker.\u00a0 Sure, technology has changed the brokerage relationship dramatically.\u00a0 It has also forced players in the real estate industry to change or get out of the business.\u00a0 A new trend of real estate brokers are embracing technology like never before.\u00a0 Will these real estate industry disruptors change how real estate services will be provided in the future?\u00a0 Will these industry disruptors drive a new enthusiasm for \u201creal estate technology brokers<\/a>“?<\/p>\n

One the largest players in the real estate industry is Zillow<\/a>.\u00a0 Although Zillow has a number of services that can bring home buyers and sellers together, they are mostly a technology company that serves to provide consumers information.\u00a0 The company generates revenue by selling services to real estate brokers and agents, as well as mortgage companies and loan officers.\u00a0 Many consumers visit Zillow\u2019s websites to view information about homes for sale or rent that are listed with brokers or the homes\u2019 owners.\u00a0 Consumers don\u2019t pay Zillow a fee or commission for the service.<\/p>\n

Over the years, many have talked about how Zillow\u2019s technological influence will predict the real estate industry\u2019s future.\u00a0 Those real estate prophets foretold a time when home buyers and sellers will be able to do business on the internet without a real estate agent or broker.\u00a0 But in reality, Zillow\u2019s influence only cemented the necessity of a broker or agent to facilitate the transaction.\u00a0 Zillow\u2019s success has generated millions of dollars in revenue, but the company has struggled to post an annual net profit<\/a>.<\/p>\n

Redfin is another real estate company that has a significant internet presence.\u00a0 Some think of Redfin as a technology firm offering real estate services.\u00a0 But the reality is that it is a real estate brokerage built around technology.\u00a0 Redfin has built its brand, and went public this year.\u00a0 Although the company generates millions in revenue, the Seattle Times reported that Redfin\u2019s IPO offering indicated that the company has yet to post an annual net profit<\/a> and has accumulated losses of $613.3 million (Seattle real estate company Redfin files to go public<\/em>; seattletimes.com; June 30, 2017).<\/p>\n

Companies like Zillow and Redfin are not the only players in real estate know for technology, but they may be the most well-known.\u00a0 These companies are part of a new generation of companies that strive for a huge internet footprint to drive business.\u00a0 But Zillow and Redfin demonstrate that technology in and of itself is not a guarantee of profitability, nor has it been an absolute \u201cgame changer\u201d for the real estate industry.\u00a0 Instead, technology has been the catalyst for change<\/a>.<\/p>\n

Industry disruptors and real estate<\/h3>\n

Consumers probably don\u2019t realize the subtleties, but the rapid changes in real estate technology has forced real estate agents and brokers to change how they engage their clients.\u00a0 Since companies like Zillow and other real estate aggregator sites have propagated the internet, the role of the real estate agent and broker has shifted away from being the source of information to being the source of a meaningful analysis<\/a>.\u00a0 Agents and brokers have also shifted their roles from information keepers to transaction managers.<\/p>\n

What better way to be a real estate change agent and industry disruptor than to build a business around technology.\u00a0\u00a0 Redfin is probably the most poised to make major impact to how consumers are served in the real estate industry.\u00a0 With all of its tech goodness, Redfin\u2019s contribution to the industry hasn\u2019t been as much technological than financial.\u00a0 The brand will likely be known for being instrumental in reducing real estate commissions<\/a>.\u00a0 In markets where Redfin has been successful in establishing its brand, agents have been under significant pressure to lower listing commissions and\/or offer buyer rebates.<\/p>\n

Original published at https:\/\/dankrell.com\/blog\/2017\/11\/26\/industry-disrupt\u2026ging-real-estate\/<\/p>\n

Copyright\u00a9 Dan Krell
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\nDisclaimer<\/a>. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

Buying and selling homes hasn\u2019t really changed much over the years.\u00a0 It still requires a buyer and a seller.\u00a0 Getting them together often requires a real estate agent or broker.\u00a0 Sure, technology has changed the brokerage relationship dramatically.\u00a0 It has also forced players in the real estate industry to change or get out of the … <\/p>\n

Continue reading “Industry disruptors changing real estate”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[24,13,66,27,356,23,680],"tags":[804,797,828,1060,803,997,491],"class_list":["post-3239","post","type-post","status-publish","format-standard","hentry","category-internet","category-real-estate","category-real-estate-brokerage","category-real-estate-market-trends","category-real-estate-news","category-realtor","category-technology","tag-internet","tag-real-estate","tag-real-estate-brokerage","tag-real-estate-news","tag-realtor","tag-technology","tag-trends"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-Qf","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/3239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=3239"}],"version-history":[{"count":9,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/3239\/revisions"}],"predecessor-version":[{"id":6260,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/3239\/revisions\/6260"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=3239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=3239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=3239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}