The Real Estate Transaction Has Been Commoditized

What are you doing about it?

Every agent is different. Every consumer is different. Every house is different. But the process and the transaction is not. It's about the same wherever you go. Think about it:

• Is there much difference between how you do a real estate deal and your competitors?
• Is there much difference between your mortgage partner does the mortgage and their competitors?
• How about the settlement service provider?

NO, NO, and NO! Due to RESPA, CFPB, MLS, and board rules, among other things, the real estate transaction has been commoditized.

So what are you doing about it?

Think about it. Your real estate transaction has been commoditized. What does this REALLY mean? Consumers already feel like they are paying too much in commissions. If the real estate transaction has been commoditized then, eventually, if not sooner, it will all be about price.

Let's play that out a bit...anyone who is a traditional broker will be in trouble. Many are in trouble now because they haven't figure out the way out of this mess.

Despite what you THINK you may be doing to address this...

• "My company has a great reputation."
• "I am a great agent and always take care of my clients."
• "I have a great mortgage company I work with."
• "I always give my closings to them and they are great."

So what? If there is no consistency then you have a problem!

Consistency is key in environment where consumers are used to an Apple, Starbucks, Zappos and other similarly positive and consistent experiences.

Consistency is a key for consumers. Take a moment and consider...

• If you are a broker, how consistent is the experience being delivered by each agent?
• If you are an agent, how consistent is the experience being delivered by the different individuals (i.e. appraiser, home inspector, loan officer, settlement provider) who touch your client?
• If you are an affiliated business, how consistent is the experience being delivered by your LO's or title agents?

Can you honestly tell me that the majority of our industry has this under control?

As a result, you have a situation where consumers have a high level of expectation but, as an industry, we typically don't deliver. Now combine that with fees that most every consumer complains about. This is a recipe for disaster if anyone outside of our industry figures this out. It will put traditional brokers out of business.

Do I personally think that is going to happen any time soon? No, I don't think so, however, it is not beyond the realm of possibility. I like thinking proactively and not reactively... you should, too!

I truly believe that if you embrace the business philosophies of brands that understand the expectations of today's consumers, you will have a distinct advantage in your market.

To view the original article, visit the PCMS Consulting blog.