Q: Why is the industry so resistant to innovation, when consumers will clearly benefit?
A: Fragmentation within this industry has kept everyone in competition within franchises, and allowed a negative industry culture of cut throat agent vs. cut throat agent to thrive.
What the industry can agree on is a collaborative assertion of, “Let’s keep the industry just like it is.” All the while, brokerages are vying for each other’s agents and even within individual brokerage firms, agents are fighting for each other’s business.
Healthy competition serves every industry well, but the infighting that is rampant within the real estate industry is ugly, sometimes backhanded and has not moved the industry forward for agents or for consumers. If anything, the fear-based messaging Realtors are bombarded with from NAR and the companies they work for slows positive momentum, as agents are hesitant to embrace new technology or allow consumers the transparency and increased control they enjoy in other industries because of the internet and advancing technology.
Collaborative fragmentation has made the real estate industry complex and scary for consumers, who are willing to pay more to avoid dealing with this friction.
Simplicity removes friction and fees.
Full service hybrid brokerages that embrace technology, charge a flat fee and offer greater transparency and control to consumers are the future of real estate.
TRELORA is the full service alternative to the complex, tension-filled hall of mirrors presented to consumers now.
Q: How long will it take the Denver-based TRELORA hybrid brokerage model to expand beyond Colorado?
A: Franchising TRELORA or similar hybrid brokerage models does not make sense. By the very tenets of deliberate practice and task mastery this paper discusses, hyper speed growth and expansion is not a practical or viable proposition for the long term success of this model.
TRELORA must invest deeply in the local marketplace, striving to become local market experts before broadening the organization’s reach.
Once the recipe for TRELORA is perfected, it will be scalable and quickly be cloned and spread across the country.
TRELORA has applied lessons learned from the failed attempts of hybrid brokerages to disrupt the industry; this application has contributed to the development of TRELORA’s holistic, consumer-centric approach to real estate service.
Pricing alone has proven not to be the answer, although consumers (and deep down the industry itself) are aware of the fallibility of an inflated 6% commission rate. Developing a viable model that answers the pricing and service concerns of consumers while prioritizing the training and success of affiliates is part art, part science and requires deliberate practice and patience.
Premature expansion because “we’re onto a good thing” will not support the long term viability of the organization, and could even serve to inhibit learning or endanger the long term livelihood of the company.