Greetings, fellow real estate consumer advocates and DIY homebuyers and sellers (particularly those hoping to sell for-sale-by-owner ),
Have you seen the article this week in Entrepreneur Magazine:
Who Will Step Up and Disrupt the Real Estate Industry?
http://bit.ly/DisruptREAL (please share this URL via social media)
Like it’s predecessor below, published six months ago, it’s creating a lot of buzz outside the industry:
Could someone disrupt real estate, please?
http://bit.ly/DisruptPLS (please share this URL via social media)
Visiting the press links below, it’s encouraging to see how much momentum was generated a decade ago, but the absence in recent years leaves one might wondering if the press went easy on the industry during the real estate recession:
http://www.areba.org/news.html (please share this URL via social media)
Harnessing the winds of change
Thankfully, the winds of change are blowing again, and calls for change are coming from inside and outside the industry. For example, the recent REBarCamp in Boston generated a Facebook group called Real Estate is Broken. Compare this hard-hitting, insider’s expose of 25 ways real estate is broken to softball questions directed at talking heads during industry conventions, or not addressed at all:
http://bit.ly/BrokenRE (please share this URL via social media)
There was a time when consumer advocates and technology innovators intent on changing the real estate industry gathered on Real Estate Connect conferences in New York and San Francisco, but Brad Inman’s post last April reveals the growing disconnect with the most disruptive business models and a new generation of FSBOs (technology enabled homeowners seeking to save money by selling for-sale-by-owner):
Real estate disruption may not be what you think it is
http://bit.ly/NotDisrupt (please share this URL via social media)
“I have never believed that real estate disruption comes from consumers selling their own houses. Individual real estate agents are here to stay. They provide an invaluable service that most of us need and want.”
Efforts to reform the residential real estate industry reform span more than 30 years, beginning in 1983 when the Federal Trade Commission (FTC) investigated the industry and then rose in frequency eight years later when the Consumer Federation of American first called the industry a “cartel.” In 2006, the FTC, US Department of Justice held hearings and brought legal action against the industry and individual MLS’s to create a more open, competitive real estate marketplace. Some, including members of this group, predicted that the fruit of those reform efforts, market innovation, and web-savvy consumers would yield $30 billion annually in consumer savings.
How do we rekindle that spirit and deliver those savings? Several times over the past two decades, alternative real estate business models have struggled to organize three different groups: (1) buyer agents, (2) fee-for-service real estate consultants, and (3) LEOs: Listing Entry Only services. Is there enough membership / infrastructure left in any of those groups to rekindle the reform movement?
One non-profit — http://CAARE.org — Consumer Advocates in American Real Estate — is underfunded, but is a credible source that the press, including Inman News, seeks out for the consumer’s perspective. RECALL (Real Estate Consumer Alliance) is a related but an informal group that has mobilized in the past on an ad-hoc basis to address a variety of issues that negatively impact consumers, like designated agency legislation.
If you’d like to reconnect with fellow change agents and follow or participate in disruption related conversations please visit the link below.
Alternatively, simply follow the hashtag #RE2020 to see if a new coalition / new generation of real estate consumer advocates and geeks can make progress towards an open real estate ecosystem by 2020.
1. SPEED NETWORKING online this Friday, October 10 at noon (EST). Contact realestatecafe (dot) com for details.
2. BARCAMP BOSTON offline Saturday & Sunday October 11-12. Want to meet offline and continue the collaborative mapping exercise on the image above: (1) Where is real estate broken or (2) vulnerable to disruption, and (3) where are new start-ups already making inroads?
3. MEET next week October 16 at http://DisruptCRE.com in Boston, and explore best ways to build traction for disruption, reform and realignment in residential real estate, too.
4. SHARE link to our related blog post, Disrupt, reform or realign real estate: Opportunities to connect dots & build synergy