The real estate industry has been buzzing about “The future of real estate.” Actually it has been a slow build over the past decade and the crescendo may be near. So what’s all the buzz about? Well, let’s look back to the days when we decided to give the keys to the castle to Realtor.com. The idea was brilliant. An avenue of getting our listings in front of the masses via their online portal. And after all they were “The Official Website of the National Association fo Realtors.” What could go wrong? Well for starters some of the leadership of Realtor.com went to jail for securities fraud. Next came the Zillow’s and Trulia’s of the world. But I digress.
The buzz lately has been more about how real estate sales are transacted and the business models of the companies offering brokerage services. Historically there have been a few models real estate companies employed.
- The traditional model, where the broker is the focus and provides lots of tools, training, marketing, etc to the agents, who in return take a lower commission split.
- Independent/100% model. Agents take on more responsibility of running a business and receive a higher split. In return they pay monthly or transactional fees to offset the overhead the broker takes on.
- Interdependent. In this case the agents and broker share the costs, and in many cases the agent has an opportunity to earn a higher split, up to 100%, once an annual CAP has been paid. There are typically additional costs the agent pays for such as office space, admin or tech fees, etc.
Add in the so-called discount brokers who offer consumers a lower fee to list homes, or in some cases rebates, or companies where the agents are employees vs. independent contractors, and the playing field becomes convuluted. All of these models have their place and attract great agents by the way. But how does “The future” come into play?
What we are seeing now are established brokerages trying to reinvent themselves, hybrid models being developing, and tech companies launching innovative new models. And that’s where I take umbrage with “The future.” Most of these brokerages are simply re-packaging old models or adding “bolt on” technology to appear futuristic. To that I say good luck.
Welcome to Real. Launched in 2014, a team of real estate professionals, technologists and venture capitalists joined forces to spark this revolution by creating Real, a technology-powered, full-service brokerage. Our mission is simple: Always find ways to make agents lives better. And we do that by building and owning the tech.
Our Difference? Creating a brokerage powered by a digital platform that frees agents. In the past, brokerages offered agents “value” by providing brand recognition, access to listings, a desk a fax machine, and paper marketing tools like business cards, letterhead, and yard signs, while measuring their success in agent sales. Real uses technology to provide agents with the tools, marketing materials, contracts, platforms, technology, lead management, listings, and support they need through a fast, intuitive, technology-driven platform. And the difference between Real and other tech-based brokerages is our platform is built with agents in mind, not the consumer.
Now, we offer a ton of value for the consumer. We just do it through our agents, who are empowered to work from anyplace and never have to worry about sacrificing service or worry about the experience they create for their clients. While Real’s technology grants our agents the ability work from anywhere, any time, our true difference lies in the way we treat our agents, and our redefinition of success.
By marrying industry leading technology, with an agent-centric approach that disposes of archaic industry standards, Real has become one of the fastest growing technology driven brokerage in the United States. If you’d like to learn more about the Real platform, please visit us at joinreal.com or reach out to me directly. I’d love to share our platform and answer any questions.
The CA real estate market is on fire, however as seasonality kicks in more inventory will be coming and that means more competition and choices for home buyers. If you are thinking about selling your house, now may be the time. Get a free price evaluation here: Free Home Value Estimate
What season of life are you in? It says a lot about where you might want to live!
2017 will be remembered as the year of shrinking inventory. We finished the year with a 10 year low inventory level. There were just 2905 single family detached homes fro sale as of December 31, 2017. What will 2018 hold for the market? Great question, but for now here’s a recap video for you. I’d love your thoughts and feedback.
Your success is Real’s mission.
Real is a technology-powered brokerage for agents who believe innovation is the key to serving clients better & reaching goals faster. In essence, Real is YOU, powered by tech.
What makes Real different than other tech-based brokerages? I get asked that a lot! Simply, our vision and mission is to, “Always look for ways to make agents lives better”. In other words, unlike other brokers, we built the Real platform for our agents. They are our clients. While we deliver an awesome app for buyers and sellers to find homes, complete valuations, learn about neighborhoods and schools, our tech was built to help our agents deliver these services at the highest level possible.
Now here’s the twist. We also have a platform for independent brokers who may be looking for an exit strategy. Maybe you want to focus on selling and not managing your agents. Perhaps you want to give up the back office admin, compliance, and oversight. Oh, and just maybe you want the best tech platform for your agents. Well I present, “Powered by Real“.
Give your agents a better platform. High-powered tech. 24/7 support and E&O. Better commission splits. Or, if you want to grow your business, consider a branch office operation. Maintain your local branding and autonomy. Offload your agent support to Real. Let us help you recruit the best agents. Earn 100% commission AND overrides on your agents.
No matter what your current business set up is, Real is ready to help. We operate in 26 states, and are up and running throughout the CA market. If you would like more info, want to demo our tech, or just have questions, please do not hesitate to contact me. I’d love the opportunity to share our platform and business model with you. Thanks…and keep it Real!
CA Broker of Record
Here we are in Q4 of 2017 and the holidays are upon us. Although with temperatures soaring, 90 degrees at the beach and over 100 inland, it feels more like summer in Palm Springs than fall in San Diego. So are real estate prices keeping pace with temps? Let’s take a look.
As you can see the median price in San Diego is near the 5 year high, currently standing at $539,000. This data represent all property types, areas, and price points. There are a few other data points I like to track as they represent the actual activity that is happening. Whenever I’m asked, “How’s the market”, this is what I think about first, closed units.
Look at that “heart rate monitor” vibe! Over the past 5 years you can see the trend, right? Sales building up on the front end of the year and then sliding back in the second half. What jumps out to me is since 2015 the drop was slightly less then the prior year. In January of 2015 sales bottomed out at 2029. January 2016 was 2113, and January 2017 was 2199. We’ll see what happens this year, but don’t be surprised if the bottom is up a bit.
One of the major challenges facing San Diego, and really all of CA, is the low inventory levels. This has led to rising prices and more competition among buyers. In fact the recent CA Association of Realtors economic report showed that 60% of all sales had multiple offers. Here is the current Active Inventory level.
OK, as you can see it’s been a downhill roll the past 5 years. At the end of Sept. inventory stood at 6101, which represents a 1.9 month supply of inventory, making this a very strong sellers market. Typically our inventory is around 12-15 thousand homes. If you have been thinking of selling, we are at or near the top of the market. One question you might ask yourself is, “Where will I go if I sell and how much will it cost me?” Great question. Affordability in the market right now is in the still historically low interest rates, not prices. Meaning more than likely you will have a lower monthly payment which will save you money over the long run.
New listings coming to the market and the next slide, pending sales, or homes that go under contract are interesting. In Sept. there were 3899 new listings that came on the market. Remember there were 6101 total actives, so new listings made up over half of that! That means homes are selling fast, so as a buyer you must be ready to move when something that meets your needs comes on the market. A strong agent will know about these newest listings first and a really strong agent will know before they hit the market.
Pending sales stood at 3072 at the end of Sept. There were 3899 new listing that hit the market and over 3000 went under contract. Again, this demonstrates how fast things are moving. As a buyer it can be frustrating if you don’t have that great agent out there hunting down that perfect home. Sellers, be prepared to deal with multiple offers, and think about your purchase side as well. I’d be happy to assist or answer any questions, just reach out anytime.