Real estate has seen its share of innovation. Today, it’s on the cusp of momentous change as technology and time converge. The shift—concerning to many—was recently addressed at RISMedia’s Real Estate CEO Exchange, “Seizing the Day, Winning the Future,” putting to rest a question long lingering in the industry: Will the profession ever become obsolete?
The answer, according to Realogy Franchise Group President and CEO Alex Perriello, is a resounding no, because of the complex, multifaceted role real estate professionals play in transactions.
“The reason why we’re still relevant today, and will be, in my view, for the foreseeable future, is the amazing computing power of the human brain,” Perriello told the select 250 attendees of the event, held at the Harvard Club of New York City. “Imagine trying to program coordination, competency, compassion, commitment, collaboration, compromise, creativity, common sense and a touch of clairvoyance…it’s going to take decades for the code to be written for that. For the real estate professional to be disintermediated completely, the human species would have to make a fundamental change that they would rather rely on a robot than one another when making the biggest investment of their lives.”
Perriello, who opened the sold-out gathering with “The State of the Real Estate Union,” offered perspective with insight gained through his involvement in Realogy’s FWD Innovation Summit, which saw a record number of startup applicants in its last year—an experience that speaks to the rate at which technology advances.
“The pace of innovation is accelerating, almost at breakneck speed…and the millennials are the driving force behind most of this innovation,” Perriello said. “They’re not trying to put us out of business; they’re trying to design the future of how things will work, for themselves as consumers, as buyers and sellers of property, and also as real estate professionals.”
Shaping the future of real estate primarily are predictive analytics and team technology, as well as artificial intelligence and enhancements to “coming soon” marketing—innovations Perriello believes will augment, rather than replace, the services of a real estate professional.
“Companies and agents who’ve embraced technology and innovation will replace those who don’t embrace technology and innovation,” said Perriello. “The key is staying aware of it. Keep asking yourself, ‘Am I relevant to all the different constituents that I rely on?’”
Technology, Perriello added, is not the only agent of change real estate professionals should be aware of. Demographic trends, both in the housing market and in the industry, will also affect the sustainability of real estate as a business.
“Demographics…they don’t lie, and they’re very easy to predict,” said Perriello, referencing the significant percentage of real estate professionals closing in on retirement age. “When [real estate professionals aged 55-plus] retire, they become irrelevant to their people, at least as it as it relates to real estate. All of that business is going to go away. It’s important as leaders to not let something like this happen, because this you can predict.”
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From:: Real Estate News