By Susanne Dwyer
How HomeSmart Is Positioning Itself to Be the Ideal Brokerage That’s Real
Editor’ Note: The following article is the cover story in the October issue of RISMedia’s Real Estate magazine.
The real estate industry’s appetite for disruption is challenging everything known about the business. In the right hands, it’s an exciting excuse to embrace innovation. In the wrong hands, it isolates consumers and agents throughout the industry.
Being a disruptor is a claim increasingly made by brokerages and emerging technologies. Opendoor and Zillow Instant Offers have garnered a lot of attention as disruptors. In an effort to get noticed, other companies jumped on the bandwagon. But, when it comes to creating a smooth, beneficial and enjoyable real estate transaction for all parties, HomeSmart CEO Matt Widdows says disruption is the last thing the broker, agent or consumer wants. They want a modern experience, time- and cost-cutting efficiency and to know that help and support is never more than a text, click or call away.
The company has been leading the charge to clear the typical brokerage clutter for well over the last decade, providing a business model positioned to thrive in an otherwise uncertain climate.
“Through all the market’s uncertainty, HomeSmart’s high-service, low-cost model, enabled by a cohesive software platform and toolset, continues to be the most reliable, high-performing approach that delivers consistency and value,” says Widdows.
In this regard, says HomeSmart, the search for the ideal brokerage—that’s real—can be called off. HomeSmart has found a business model to which a growing number of agents and brokers flock. There are nearly 14,000 agents throughout the country, and HomeSmart intends to add another thousand before year’s end.
“I think disruption is helping our model in many ways,” says Widdows. “We’re very technology-based already. We’re in a good position moving forward. Companies relying on heavy revenue streams based on agent commissions are going to have a hard time adapting.”
Perhaps this is why Keller Williams recently announced it would set aside $1 billion for technology development to combat disruption, suggests Widdows.
HomeSmart, which has been running on its proprietary software for more than a decade, is poised to go head-to-head with a disrupted market.
“Our motto is that if we have to do it twice, automate it,” says Widdows, adding that technology is not in any position to oust agents from their business if the right model is established.
It’s not easy for agents and brokers to recognize the right model. A lack of consistent reporting within the industry is keeping them from accurately comparing what every brokerage offers. The result is a struggle for finding true transparency. An agent may join a company that offers 100 percent commission, thinking they’ll keep all their money, but then they’re hit with fees left and right. Agents are having to learn the hard way that not all brokerages are designed equally.
In man versus machine, technology can’t compete with a real estate agent as a local expert. Yes, more than half of buyers found the home they purchased online, according to the National Association
From:: Real Estate News
