Time to Redefine the Traditional Brokerage Model in Real Estate

The real estate companies working on traditional brokerage model must rethink and redefine their current models. Here are the ways how brokerages are changing and how firms should adapt to new practices

Fremont, CA: The traditional real estate brokerage model is getting disrupted with the advent of new technologies and alternative business models which have adopted new strategies to inform customers than ever before. Some have even found ways to eliminate the concept of agent altogether. The real estate companies working on traditional brokerage model must rethink and redefine their current models. Here are the ways how brokerages are changing and how firms should adapt to new practices.

Technology - Unlike the traditional model, the use of technology in the real estate industry has a lot more to offer to its clients. Clients are more holistically inclined towards understanding a property than ever before, and technology has all it can offer starting from listings, prices and details of properties, which were earlier provided by real estate agents. The data-driven models help to bring transparency and understanding of arbitrary markets more accurately. Thus, the sheer amount of information available to consumers online is going to change the role of a broker and the brokerage as well.

Specialization - Most of the brokerages are constantly exploring ways to specialize their skills, rather relying on independent agents. Specific skills like data research, listing management, branding, creative design etc. allows a firm to build better client relationships, communicate and sell their assets effectively rather than focusing on competition and commission. Today's consumers are informed and smart enough to understand who has the most reliable data and expertise skills, which in turn builds trust among the potential clientele for a specific firm or company.

Branding - Branding, and marketing are essential for any real estate industry to survive in a highly competitive market. According to the Social Media Examiner's 2018 survey, 87 percent of marketers rank more exposure for their businesses as the primary benefits of their social media efforts. Similarly, with the help of social media, real estate firms would be able to create a more engaging and unique set of branding materials that would make them stand apart from others. Another important aspect of social media branding is knowing the client base. Choosing a social media where most of the clients remains active and can be engaged could be a rewarding one for a real estate industry.

Wrapping up, traditional brokerage models are getting obsolete, and it is high time for the real estate industry to take up new and alternative business models. With consumers getting more educated and informed, they will start to begin to hold the industry professionals responsible for their level of service, value and results.

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