Whether you are a client, investor, or you work in the real estate industry, the future of real estate is coming fast and the changes are very exciting. As always, change is driven by demand. Clients are clamoring for a one-stop-shop across all industries, and the real estate industry will be no exception. This week, we talk about the machine behind the client-facing side of the industry, expansion teams, what to expect in the coming years, and the growth of real estate platforms of service. We talk about the history of real estate and how this women-dominated field is now poised for some heavy disruption.
In this episode, you will learn about:
- The history of the real estate industry, and the definition of brokerage firms, expansion teams, and platforms.
- The coming changes in the real estate industry.
- There is a race for companies to create the best real estate platform. Who will be the Hulu or Netflix of real estate? Is it Zillow, or possibly someone else?
Take a listen and let us know what you think with a comment below! If you like what you hear, make sure to subscribe and share with a friend.
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Timestamps:
[3:36] Unless you work in real estate or have paid close attention while buying a house, most people just think of what happens in the industry as what is featured on TV — one single agent handling all parts of a transaction. However, there are a whole lot of other wheels in motion behind the scenes which aren’t typically shown. Real estate teams have been continually growing and have been predominantly driven by women.
[7:37] We break down the three models of a team: a real estate team, an expansion team, and a real estate platform. A team can be massive and highly profitable serving one market, or it can be a small team serving 10 clients a year. Size doesn’t matter, it’s more about their reach. On average, a team may have 7‒10 people.
[11:00] An expansion team has a much stronger backing of people supporting it, including more admin, and employee base to service the clients and agents. No matter where you are, the client gets the same experience and you can duplicate the formula.
[13:52] People may try to expand too fast without the current need for it. The only time you should be expanding is when the business is putting pressure on the business to expand.
[17:59] A real estate platform, such as Zillow, is consumer-facing and is all-encompassing. We will see a race in creating bigger and better platforms as this model disrupts the traditional way of doing things. A platform is even more streamlined than an expansion team because there are more people servicing them. A platform has all the depth of an expansion team but also can service the agents at a higher level without a middleman. Each person in the platform has a specific role that provides a whole sum of what a consumer may need when looking to buy a house, sell their house, or complete the move-in process.
[23:42] A platform can also provide services such as a mortgage, insurance, and providing home titles. The companies that will rise up are the ones that will provide not only a one-stop-shop but transparency and ease for the consumer. Hulu, Netflix, and Amazon are all examples of how a platform can be used for consumers to go online and have everything they are looking for all at once.
[29:30] Even once the pandemic ends, the average person will be spending more time at home, and viewing their house as more than just a locker for their belongings. Consumers will want more visibility and that is where the best platforms will emerge from.
