Why you should care 

Consider the real estate industry, both the short and long term financial well-being of home buyers, sellers and owners is at stake over the course of a real estate transaction. Median home values in Metro Denver stand at $320,800; the national median home value is $183,500 and is expected to rise 2.6% by year’s end. 

The home is the most prized possession in the American financial portfolio. 

Fourth quarter reporting by the US Census Bureau shows a seasonally adjusted Homeownership Rate of 63.7% among Americans. At the time of publication, the total population of the United States was 322,992,365 and counting. The resulting math indicates that 205,746,136 and a ½ people have a vested interest in the way the business of real estate is conducted. 

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Additional Points for the Industry to Ponder

Real estate will be the fastest tipping industry in history. 

When the dust settles, companies who adopt the TRELORA hybrid brokerage philosophy will succeed in the new incarnation of the real estate industry.

Top brokerages Keller Williams, RE/MAX and Coldwell Banker will either have to outsource, completely revise their business models or go the way of Borders when the publishing industry innovated as consumers increasingly embraced digital content. The methodology of these traditional brokerage frontrunners is unsustainable under the TRELORA pricing model; there is simply too much overhead to maintain business as usual (or anything similar to the usual form and function) with the level of overhead these organizations carry. 

 

Hybrid brokerages that offer a full level of service alongside one flat fee for services do not have to quickly capture the lion’s share of the market in order to grow and eventually capture consumer attention on a national level. Apple has just 18.2% of the entire smart phone market and they seem to be doing alright. TRELORA and hybrid brokerages like it don’t have to own the market today to effectively lead industry innovation and drive change.  

 

The independent contractor model does not create the level of service and predictability consumers require – regardless of price. Consumers do not desire nor do they deserve to sacrifice service in order to achieve reasonable prices for services rendered. 

Reason will win, and change is inevitable.  

3 Pillar Pillars to Our plan - Beliefs

Advocate 

A December 2015 Gallup poll ranking consumer trust in numerous occupations ranks real estate agents in the bottom half of the list, right between lawyers and labor union leaders. 

- The price for real estate services is out of line with the value of the services provided

A flat fee on both sides of the transaction is the answer to this inequity. 

Innovate 

 Real estate will be the fastest tipping industry in history. 

The employment model of specialization (as seen in hybrid brokerage TRELORA) puts a lead agent, backed by a team of task specialists, in the position of handling 100-150 transactions annually. This is ten times (or more) the volume of transactions, giving the employed agent many more opportunities for specialized, experiential practice of a real estate transaction. 

BLOG - HANG THEIR HATS

Currently, there is no widespread technology available to provide consumers the level of transparency and control they desire in a real estate transaction. 

Educate

The average Realtor closed 11 transactions in 2015.

According to NAR’s own research in partnership with Google, 90% of buyers say they found their home themselves, not their agent. Just 14% of buyers initiate their search with the assistance of an agent. 

 

agents may refuse to show a property to their buyers because the compensation advertised is a flat fee of $2,500, or 2.5% instead of the 3% they are accustomed to in their marketplace. They may show clients a home offering a flat fee or non-standard commission rate, but actively steer the client toward listings offering the traditional 3% commission rate. 

Realtor Takeaway

As a good agent, you work hard. In fact, you work too much. You have to do way too many things. Real estate is a complex business, and it has its challenges.

The one constant is change; this is true in life and true of any industry. 

Real estate has had a long run – a good run; but it’s time for change. 

You can choose to be a specialist: choose your favorite part of the transaction, do it over and over, and you will be compensated well. Because you are putting more money in the bank for them when you charge one flat fee, customers will love you. You can still drive that fancy car and have money in the bank, and you can still love your real estate career.  

 

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Top brokerages Keller Williams, RE/MAX and Coldwell Banker will either have to outsource, completely revise their business models or go the way of Borders when the publishing industry innovated as consumers increasingly embraced digital content. The methodology of these traditional brokerage frontrunners is unsustainable under the TRELORA pricing model; there is simply too much overhead to maintain business as usual (or anything similar to the usual form and function) with the level of overhead these organizations carry. 

Hybrid brokerages that offer a full level of service alongside one flat fee for services do not have to quickly capture the lion’s share of the market in order to grow and eventually capture consumer attention on a national level. Apple has just 18.2% of the entire smart phone market and they seem to be doing alright. TRELORA and hybrid brokerages like it don’t have to own the market today to effectively lead industry innovation and drive change.  

The independent contractor model does not create the level of service and predictability consumers require – regardless of price. Consumers do not desire nor do they deserve to sacrifice service in order to achieve reasonable prices for services rendered. 

Reason will win, and change is inevitable.  

TRELORA BELIEFS 

“What makes ridiculously successful people so successful is that they’re experts at practicing.”Malcolm Gladwell