Thursday , July 29 2021

Will brokers disappear? What are the changes 2019 and Blockchain contribute to the role of the agents




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Will brokers disappear?

Propy Inc.

Traditionally, the stagnant real estate industry is beginning to grow faster due to advances in automation and new technologies such as AI and blockchain. These technologies make it possible to address the well-known inefficiencies in the real estate sector. As a result of these changes, real estate agents will have to adapt or risk abandoning the competition.

Brokers do more than they do

The rapid progress in new business models has an impact on the real estate industry. According to Alex RammelGeneral partner of Andresen Horowitz, buyers and home sellers, accustomed to the rapid delivery of services and goods brought about by the latest technology improvements, and expect no less when deciding to enter the real estate market. Real estate companies are expanding to meet these consumer expectations "I want it now". Despite the promise of increasing labor productivity that new technologies bring, jobs by real estate agents are not necessarily threatened; they will however be transformed according to how agents can bring the benefits of new technology to their customers. These transformations are already evident in digital business models created by companies such as Opendoor, Zillow Offers and RedfinNow. In order not to be abandoned, several traditional real estate companies are already changing the role of agents.

An example is the Compass brokerage firm. The traditional fee for inclusion in the Compass 6% list includes repair management for properties that are sold. Company agents are working with homeowners to assess improvements to raise housing prices. Compass funds all initial costs with zero interest loans to get more profitable sales; then collects payments for services when the property is closed. This Innovative business model and recent Softbank funding have made Compass quick to speed up to $ 4.4 billion valuation.

Another example of transforming the agents' role comes from eXp Realty's leading virtual mediation. eXp Realty is the property of the agent, and agents perform most of their work from home or from a remote office.

EXp Realty's business approach makes the roles of its agents unique. For example, as part of the recruitment program, agents receive incentives to attract other agents to join the brokerage business. Proactive agents participate in the revenue share, and successful intermediaries become shareholders in the company.

EXp Realty's unique business model promotes network effects and rapid revenue growth. Mostly, the market capitalization of eXp World Holdings Inc. is 605 million dollars, Suzy Truax, Chairman of the eXp Agent Advisory Board, said: "Industry will consolidate into users and not. Those who do not accept the technology wave will be crushed by it. "

Despite these "back office" organizational and management changes in large brokerage services, the client's face associated with the role of the agent does not change much. Regarding the question of whether the role of real estate is changing, Glen Sanford, CEO of eXp World Holdings, said: "I do not think the role changes so much. [With technology, there is] is still a trusted consumer advisor throughout the deal, given the size and complexity of a real estate deal. "

In 2018, nearly 40% of homes in the United States have been purchased from the millennium. This group is well-known for its on-demand performance. Of course, the traditional process of buying a home and getting a mortgage is far from the moment. As the new generation dives deeper into real estate, there will be more support for new technologies that increase transaction efficiency.

Blockchain will turn brokers into Data Miners and provide additional revenue opportunities

All signs currently point to blockchain technology as a force that will ultimately dominate the real estate sector. Combined with automation, distributed accounting books will lead to dramatic changes in the role of all intermediaries in the process of buying and selling property.

Regarding real estate technology, Richard Ted, the first founding partner in Compass, San Francisco, and Teed & amp; Co, said, "Real estate is just one area where intelligent contracts will record almost everything that needs to be recorded."

With intelligent contracts, all processes will be automated, and key data will be stored in a blockchain. In this way, stored in a secure and unbreakable location, the data will no longer need to be copied and transmitted many times between the buyer, the seller and the intermediaries during the closing process. In addition, when documents are visible and shared between all stakeholders in the sales process, the chances of mis-dealing or falsification are virtually eliminated. In addition, county record offices will ensure the unchanging authenticity of the actions, and brokers will be able to easily check the deal in real time.

With blockchain it is expected that the role of real estate agents will change irreversibly. In combination with automation processes, block systems are likely to expand the intermediary's work, so the real estate professional will act as a "data miner". Real estate agents and property agents will be able to check real estate transactions and help store data on the block network instead of a conventional centralized cloud. Just as miners receive reward in the form of crypto, real estate agents will receive network symbols as compensation for their contribution to the ecosystem. Such decentralized warehouses with common objectives are IPFS, Sia and Storj. If such systems are developed for brokerage firms, banks and shareholding companies, then crypto-economic incentives will lead to dramatic changes in the roles of real estate professionals.

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Will brokers disappear?

Propy Inc.

Traditionally, the stagnant real estate industry is beginning to grow faster due to advances in automation and new technologies such as AI and blockchain. These technologies make it possible to address the well-known inefficiencies in the real estate sector. As a result of these changes, real estate agents will have to adapt or risk abandoning the competition.

Brokers do more than they do

The rapid progress in new business models has an impact on the real estate industry. According to Alex RammelGeneral partner of Andresen Horowitz, buyers and home sellers, accustomed to the rapid delivery of services and goods brought about by the latest technology improvements, and expect no less when deciding to enter the real estate market. Real estate companies are expanding to meet these consumer expectations "I want it now". Despite the promise of increasing labor productivity that new technologies bring, jobs by real estate agents are not necessarily threatened; they will however be transformed according to how agents can bring the benefits of new technology to their customers. These transformations are already evident in digital business models created by companies such as Opendoor, Zillow Offers and RedfinNow. In order not to be abandoned, several traditional real estate companies are already changing the role of agents.

An example is the Compass brokerage firm. The traditional fee for inclusion in the Compass 6% list includes management of repairs for properties that are sold. Company agents are working with homeowners to assess improvements to raise housing prices. Compass funds all initial costs with zero interest loans to get more profitable sales; then collects payments for services when the property is closed. This Innovative business model and recent Softbank funding have made Compass quick to speed up to $ 4.4 billion valuation.

Another example of transforming the agents' role comes from eXp Realty's leading virtual mediation. eXp Realty is the property of the agent, and agents perform most of their work from home or from a remote office.

EXp Realty's business approach makes the roles of its agents unique. For example, as part of the recruitment program, agents receive incentives to attract other agents to join the brokerage business. Proactive agents participate in the revenue share, and successful intermediaries become shareholders in the company.

EXp Realty's unique business model promotes network effects and rapid revenue growth. Mostly, the market capitalization of eXp World Holdings Inc. is 605 million dollars, Suzy Truax, Chairman of the eXp Agent Advisory Board, said: "Industry will consolidate into users and not. Those who do not accept the technology wave will be crushed by it. "

Despite these "back office" organizational and management changes in large brokerage services, the client's face associated with the role of the agent does not change much. Regarding the question of whether the role of real estate is changing, Glen Sanford, CEO of eXp World Holdings, said: "I do not think the role changes so much. [With technology, there is] is still a trusted consumer advisor throughout the deal, given the size and complexity of a real estate deal. "

In 2018, nearly 40% of homes in the United States have been purchased from the millennium. This group is well-known for its on-demand performance. Of course, the traditional process of buying a home and getting a mortgage is far from the moment. As the new generation dives deeper into real estate, there will be more support for new technologies that increase transaction efficiency.

Blockchain will turn brokers into Data Miners and provide additional revenue opportunities

All signs currently point to blockchain technology as a force that will ultimately dominate the real estate sector. Combined with automation, distributed accounting books will lead to dramatic changes in the role of all intermediaries in the process of buying and selling property.

Regarding real estate technology, Richard Ted, the first founder partner in Compass, San Francisco and the Teed & Co principle, said: "Real estate is just one area where intelligent contracts will record almost everything you have to record . "

With intelligent contracts, all processes will be automated, and key data will be stored in a blockchain. In this way, stored in a secure and unbreakable location, the data will no longer need to be copied and transmitted many times between the buyer, the seller and the intermediaries during the closing process. In addition, when documents are visible and shared between all stakeholders in the sales process, the chances of mis-dealing or falsification are virtually eliminated. In addition, county record offices will ensure the unchanging authenticity of the actions, and brokers will be able to easily check the deal in real time.

With blockchain it is expected that the role of real estate agents will change irreversibly. In combination with automation processes, block systems are likely to expand the intermediary's work, so the real estate professional will act as a "data miner". Real estate agents and property agents will be able to check real estate transactions and help store data on the block network instead of a conventional centralized cloud. Just as miners receive reward in the form of crypto, real estate agents will receive network symbols as compensation for their contribution to the ecosystem. Such decentralized warehouses with common objectives are IPFS, Sia and Storj. If such systems are developed for brokerage firms, banks and shareholding companies, then crypto-economic incentives will lead to dramatic changes in the roles of real estate professionals.


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