Definition of Disruption: To change the traditional way that an industry operates, especially in a new and effective way. Disruptions happens with unhappy customers, not with technology.
As I have said many times, there will is always be the attempts to disrupt the Real Estate Industry! Who remembers Help-u-sell? I don’t! And we will be saying the same thing about “Purplebricks” bye-bye Felicia
What’s really going on for many of these online real estate buying and selling”start-ups” is nothing more than a short of stock “pump & dump” that makes the board of directors richer, while leaving the rest with worthless stocks!
While there have been disruptions to several industries…i.e. Travel Industry with Expedia, and brick and motor stops with Amazon . And even so, look at the travel industry today. Travel agents are making a huge comeback…more and more people are turning to them again to help plan and book their vacations.
There are certain industries that are very difficult to disrupt. Here is the criteria for an industry to be difficult to disrupt:
- Is it a high price item? Real Estate checks that box for sure
- Is there risk attached? Real Estate……YES!
- Is it an infrequent purchase? Real Estate….YES again!
- It it a complex transaction? ummm…Yes that’s a yes for Real Estate
- Is it a unique product? Yes number 5 for Real Estate.
Can the Real Estate Industry be disrupted. Maybe?….maybe not? I believe that there will be place for the IBuyer and ISeller systems going forward. At the end of 2018, the IBuyers nationally accounted for approximately 25,000 transactions (15,000 purchase and 10,000 sales). That left them with about .2% total market share, so they have a long way to go. But I think that what will really happen is the way we do business will change and improve, become more streamline, etc and that is always a good thing, both for the Real Estate agent and the client.
Look how Real Estate improved with with internet. Before the only way to get information was from a Real Estate Agent, that had a printed book of homes for sale to look through…..boy I am glad I wasn’t an agent back then.
Agents thought their careers where in jeopardy……and as we now know, they are still here working, but better and more improved!
So in conclusion….what else is there to stay…they are here, some will stay, some will not.