Editor’s Note: This was originally published on RISMedia’s blog, Housecall. See what else is cookin’ now at blog.rismedia.com:
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“There are a lot of different models in this room. At the end of the day, you have to be true to your model, just like Nordstroms, WalMart and Macy’s. It’s the same thing here.”
And with those wise words, Jose Perez, executive vice president of Global Sales for Proxio, set the tone for the panel discussion he moderated at RISMedia’s Real Estate CEO Exchange: “The Evolution of The Real Estate Model: Are You Adapting Fast Enough?” Gathering together industry leaders representing a variety of real estate business models, the session sought to answer the questions “Is there room for many models in this industry?” and “Is one necessarily better than any other?” The short answer: Any model can work, as long as it’s well understood and well executed.
Understanding Your Model
Changing market dynamics and changing consumer demands have paved the way for many variations on the traditional real estate model. Here’s a look at how the panelists described their models:
Proxio EVP of Global Sales Jose Perez moderates RISMedia’s 2017 CEO Exchange session “The Evolution of the Real Estate Model: Are You Adapting Fast Enough?”
Rob Lehman, Chief Revenue Officer, Compass
“We’re a technology powered brokerage first and foremost. We’re 100-percent focused on building software for agents and creating value for agents. We bring people in from outside (i.e., Pixar and Google) who have never worked in real estate because we want phenomenal expertise.”
Ashley Bowers, Chief Operating Officer, HomeSmart
“We play in the middle—we’re a hybrid. We’re not a discounter. We are delivering high service and charging a full fee to the consumer, and we have the brick and mortar; but we are charging a flat fee to the agent because of our centralized services.”
Mark Stark, CEO and Owner/Broker Berkshire Hathaway HomeServices Arizona/California/Nevada Properties
“We transformed our company from a traditional brokerage to a business services company. We help agents grow a brokerage under the umbrella of the company. There are two important things about us: We know who we are, and we know who we are not.”
Richard “Rick” Haase, President, Latter & Blum, Inc.
“We’re a 100-year-old company founded in New Orleans. We run a house of brands you’d all define as traditional model. In Houston, we have a model that is the polar opposite. Agents there pay an annual fee and a small transaction fee to do business. In New Orleans, we have 1,400 agents and 140 employees. In Houston, we have 1,840 agents and nine employees. It’s a different company when you cross that state line.”
Errol Samuelson, Chief Industry Development Officer, Zillow Group
“A big chunk of our engineering is working on the consumer experience; it’s also about building software for real estate brokers and agents. Of late, we’re building out solutions for brokers with Premier Brokers. Our belief is to move fast and …read more
From:: Real Estate News