Chief Executive Officer at RE/MAX Holdings, Inc. overseeing its brands: RE/MAX, LLC, Motto Franchising, LLC, and wemlo.
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There’s a lot of chatter in the business world about how companies and leaders will transition to post-pandemic operations as we enter what we hope is the final stretch of the Covid-19 pandemic. There is real cause for optimism, and after a year of professional and personal adversities for so many, it should be the sense of renewal we glom onto, not a misguided wish to go back to the way things were.
One question I’ve been asking myself is, “Does business as usual ever really apply in a fast-paced industry like real estate?” What is it, in a business sense, that we want to “return to normal?” In a time before the word “unprecedented” became commonplace, the word “disruptor” was the boogeyman term everyone used in the real estate industry to lament change. But if you look up “disruptor” in the dictionary, one definition you’ll see is: “a company or form of technology that causes radical change in an existing industry or market by means of innovation.” Innovation is a term rarely associated with negativity, so how is it that disruption in a professional setting became criminalized?
Real estate was disrupted in 2020 for reasons outside of our control. I should add that when RE/MAX was first founded in 1973, we were labeled as a disruptor for our unique commission model. It’s been nearly 50 years and we’re still innovating, surviving and thriving. It’s critical that we challenge resistance to change out of fear.
Here’s an example of how the industry was disrupted in 2020 — and why real estate agents came out stronger because of it. Much of the technology that agents needed in 2020 existed long before the pandemic. The industry can be slow to embrace technology, often out of distress that it will either replace the value of the real estate agent or that it will somehow detract from the personal relationships the best agents cultivate with their clients.
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The business environment created by Covid-19 forced real estate professionals to adapt and use technology that was already there — and guess what? Real estate agents remain the most important part of the transaction today. The National Association of REALTORS® 2021 Home Buyers and Sellers Generational Trends Report found 88% of all buyers purchased their homes through an agent, as did 91% of buyers 30 years and younger and 89% of buyers 31 to 40.
Brokers and agents who were reluctant to shoot video suddenly had to get on board with video marketing and virtual open houses or showings. These skills will surely remain relevant in a post-pandemic world, and those real estate practitioners who welcomed the professional growth will be better for it. Agents who embrace technology are able to deliver a better consumer experience. And that’s what we’re all ultimately after.
It’s understandable — human nature, even — to want to go back to the good old days. But what are we here for if not to improve, move forward and adjust to the changing needs of consumers? Our chairman and co-founder always says, “If you do business today the way you did it yesterday, you won’t be in business tomorrow.”
There’s no going back, only forward. So, what should we as an industry get excited and passionate about next? Take your pick:
1. Driving Equality Within Real Estate
Real estate agents are in the business of supporting every type of person or family to fulfill the dream of homeownership. Fair housing means everyone has the same opportunity to live where they want to live, build wealth and get a fair loan amount. Everyone who works in real estate — real estate agents, builders, title companies, loan officers, etc. — has a role not only in fulfilling the applicable legal aspects of fair housing but also in eliminating barriers to homeownership.
2. Addressing The Inventory Crisis
According to a recent analysis by Freddie Mac, “the U.S. housing market is 3.8 million single-family homes short of what is needed to meet the country’s demand.” The good news is that it’s an issue homebuilders and real estate agents can work on together. As construction rebounds and new homes are built, agents will sell them. Quickly.
Let’s bid adieu to the ways of the past and move forward, improve and find new and better ways to do our jobs. Let’s make a change.
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