Consumers Drive Real Estate Change

April 7, 2006

This just in from Inman News:

Client as catalyst: Consumers drive real estate change

Report focuses on consumer behavior, demands
Friday, April 07, 2006

Inman News

Consumers are demanding a range of real estate products and cost options and driving the real estate industry to a new era of specialization and segmentation, according to a work group that included real estate brokers, sales associates and consultants.

The work group, formed by a National Association of Realtors committee that is composed of Realtor association executives, also reported "conflicting consumer desires" – consumers seem to want both autonomy and personalized service in real estate transactions.

"The Consumer: Catalyst of Change," a Realtor association report released this month that is based on the work group discussions, also noted that consumers are hungry for: "convenient online services and search tools, including full information about listed properties," "immediate responses to their online or telephone communications," "personal, friendly service from both the agent and the real estate company," "a smoothly integrated transaction process with effective solutions for any hurdles along the way and no surprises at closing," "low fees and commissions or a choice of fee packages," and "a convincing sense that the agent and broker add value to the buying (and) selling experience."

This new study report from the National Association of REALTORS® (NAR) reinforces the A.D. Little study prepared for NAR several years ago.

National Association of REALTORS® A. D. Little Study: "Technology and the consumer will change the business model and execution of the real estate transaction. By 2005, real estate licensees will re-frame themselves from salespeople to real estate consultants".

The conclusion then and now: consumers are empowered with more information from the internet, want to see real value delivered by hiring an agent and want more choice in what they pay for and how they pay for it. Enter: the "Real Estate Consulting Model". When Pam and I founded our business we concluded that consumers were ready for change and that we would do business in non-traditional ways. So far, we are very successful using this new model. It is based on the premise that "one size does not fit all" in a real estate transaction. Here is how it works:

• We show you all the services and associated costs that makeup a real estate transaction and we jointly choose those right for your situation. We call it smart planning or SmartPlan™.
• We show you the cost of the services selected compared to typical commission rates.
• Then, you choose how you want to pay. We call these financial smart choices or SmartChoice™.
• We put our joint plan into action and focus on producing the desired result. You attain your real estate goal at the right cost, in the shortest amount of time with the least hassle.

In addition, we offer a one stop shop to provide any necessary pre-listing items such as new carpet, paint, maintenance, floors and even new appliances to get the home prepared to sell. We use contractors and suppliers we know and trust and manage the entire process. We charge a management fee for this value added service.

Ever wonder where our name came from: Choice³ Realty? It is intended to brand our way of doing business; giving consumers choices. You can find a complete description of our service model at OUR SERVICES: Real Estate for the 21^st Century. You will even find an entry titled: Consumers Drive Real Estate Change that we created over a year ago.

We believe we are on the edges of what will be enormous change in the industry. We didn't make 2005 as A.D. Little suggested but, it is not far off. The innovators have and will continue to change the landscape. "Lead, follow or get out of the way." We choose to lead by being different.

Comment on Consumers Drive Real Estate Change. Follow this article is off. More articles like this one filed in: Commissions , In the News