Technology and its disrupters are changing the face of a multitude of industries. Few are immune to the changing tide of innovation. Ever heard of a little start-up called Uber? In the process of turning the antiquated and highly regulated taxi industry on its head, Uber created a whole new industry now known as ride-sharing. The real estate industry, which also has been entrenched in traditional methods similarly to the taxi industry, is perfectly ripe for a technological revolution.
This week on Modern American Realtor the Wright Brothers present their latest podcast from Inman Connect in San Francisco, where this tech revolution was the hottest topic on everyone’s lips. Therefore it begs the question, how can real estate agents protect themselves from inevitable new brokerage and technology models? There are four key ways that you can utilize new technology to your advantage to differentiate and separate yourself from the competition.
When the tsunami wave of tech disrupters hits, agents that consider themselves to be solo full service agents will all be but wiped out by those agents who are in some form of a collaborative team. Aligning yourself with a team enables an environment where you can leverage one another’s best skills, pool the best talent together, and specialize in the area you are most successful in. The tech world has already taught us that it is far more advantageous for you too see peers as collaborators rather than competitors.
At Inman Connect a new tech player presented itself, and it’s one that could potentially change the entire game. SoloPro is a community platform that enables a home buyer rebate of three percent for do-it-yourself home buyers by connecting them to real estate agents who offer their unbundled services for a small fee. Essentially the entire commission structure that the real estate industry is built upon is completely dismantled. To many agents this will make them feel exceedingly uneasy and uncomfortable. However, don’t see this type of radical change as a negative, rather see it as a great opportunity. Agents that get in on new technology early and become experts in that area have the unique opportunity to potentially make more money doing more of what they love.
The previous point leads straight in to why adapting to new technology can help you diversify your business. Consider this potential scenario, it’s 5 to 10 years in the future and the three percent commission scale no longer exists and you’re not making the money that you once did. Don’t let this scenario scare you in to hiding or send you running towards another career. Instead, see right now as the perfect time to diversify your business and your finances. Never ever have a single revenue stream. Consider investing in real estate properties, being a property manager, or flipping homes. Most importantly, always be developing new and different skill sets that help expand your knowledge and expertise in the industry.
Finally, to protect yourself from potential tech disrupters is to fully develop and establish your own niche. Enter a niche that is too narrow or specialized for tech start-ups to follow. If you look at the top tech companies they create services that have wide audiences and appeal, you on the other hand, must take the opposite approach. A few ideas of potential niches is to have a speciality in a specific geographic area, cater to empty nesters, or dog owners looking for pet friendly neighborhoods.
The biggest takeaway for you to understand is that the new tech revolution will create a greater income disparity between lower and higher ranking agents, and even put some agents completely out of business. Again don’t let this prospect get you down, instead let it excite and motivate you to embrace and adapt to new technological opportunities that can catapult you in to an even more highly respected and successful real estate agent.
0:24 – Introduction of Inman Connect
0:50 – Initial Takeaways
3:37 – Inman Connect Favorite Moments
5:04 – Overview of Four Main Takeaways
5:37 – Build a Collaborative Team
8:48 – Make Technology Your Most Advantageous Partner
15:19 – Diversify Your Business
19:05 – Establish Your Niche
22:25 – New Income Disparity
23:22 – Final Thoughts
Podcast produced and edited by Jacob Turnbloom
Intro and outro music created by Jacob Turnbloom
Categorized in: Uncategorized
