Are You A Real Estate Disruptor Or Are You Going To Be Disrupted?

April 2, 2012
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Last week Brian Boero over at 1000watt Blog wrote a great article that highlights an important fact: Real estate is ready for a disruption.

Cycle

What the article says is that with most industries being revolutionized by the internet, real estate is one of the few that has not. It has been innovated and shaken, but by no means has it been disrupted – YET.

  • Online stock brokerages have put many local stock advisors out of business. There are still many out there, but a lot less than there was 10 years ago.
  • iTunes, Amazon, and other online book and music sales have disrupted local music stores and CD sales.
  • The vast availability of news on the internet has put many magazines and newspapers out of business.
  • When was the last time you used a travel agent?

In real estate, technology is only a tool to get you where you need to go. The true disruption comes from a change in behavior, a change in mindset, or a change in business model. For a good example of technology causing some disruption, make sure to check out how one Austin Real Estate team is shaking things up.

So back to my original question: Are you a disruptor or are you going to be disrupted? Are you doing business the same way you were 10 years ago? Perhaps it is time for a change. What are your thoughts?

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4 Responses to Are You A Real Estate Disruptor Or Are You Going To Be Disrupted?

  1. Drew Meyers on April 3, 2012 at 6:38 am

    95% are going to be disrupted. A few will be on the cutting edge and will be part of the disruption as it happens.

    I hope, and believe, that a large chunk of the business moves from the bottom agents to the top agents. The current client acquisition process is hugely inefficient as it stands now. Like Good Life Team, another brokerage taking the right approach (in my mind) is M Squared RE in DC – msqrealty.com.

    • Brian on April 3, 2012 at 10:04 am

      Hey Drew, thanks for stopping in!

      I have to disagree with your statement that much of the business moves from the bottom agents to the top. I think a lot of the top agents (in my experience at least) are too set in their ways to handle a major change effectively unless they have already started to adapt, adjust, and overcome.

      I think it will be the newer agents who are not tied to a certain system will be the ones that will be able to revolutionize or at least adapt better to the changes that are coming.

      • Drew Meyers on April 3, 2012 at 1:11 pm

        I’m talking about the agents at the bottom…that shouldn’t even be in this business to begin with. As they drop out, most of that business goes straight to the top agents who have known reputations in their respective markets.

        The top agents don’t need to handle a change. They just need to sell more real estate.

        • Brian on April 3, 2012 at 6:34 pm

          Reputation will do a lot to help agents, but when the “revolution” comes, those who cannot adapt to the change will be the ones to go.

          I don’t think it will matter if they are new or experienced. The first to change and adapt will prosper, and those that don’t/cant change will be out of the business quickly.