Do you know the ten biggest threats to the real estate industry?
The National Association of Realtors (NAR) has launched a new Danger Report. That said, is there anything to be afraid of? How can real estate agents, investors, and businesses protect themselves from these threats? Perhaps even more importantly, is there a way to leverage them to their advantage?
InMan News coverage of the new NAR report and Danger Index extracts the following 10 dangers out of 50 currently being monitored:
- Masses of marginal and unethical agents destroying industry’s reputation
- Regulatory tsunamis, and increased compliance costs
- Failure to recruit and retain effective and in-touch leaders
- Susceptibility to large outside players taking advantage of in-fighting amongst current competitors
- Lack of vision as to what the next evolution of the industry should look like
- Contraction of real estate commission rates
- Inability of NAR to keep up with the speed of the changing marketplace
- Virtual brokerages taking over thanks to low overhead and increased efficiency
- Fragmented processes, interests, and decision making between Realtor associations
- Misguided leaders that don’t get their responsibilities and obligations
How to Defend Against These Real Estate Industry Threats
Some have questioned the wisdom behind the NAR’s reason for publishing these “threats.” Some may fear that they invite some to take advantage of certain dangers. The same may have been said about recent NAR Member Profiles, which have highlighted how little business some agents are really doing, and what they really spend their money on. Others may see it as an essential wake up call, and key to helping those in the industry to stay on top of their game.
If all Realtors, association leaders, agents, investors, and entrepreneurs really took their business seriously, committed themselves to being their best, and to great ethics, most of the rest would take care of itself. If everyone operated like this, their reputation wouldn’t be in danger. There would be no need for increased regulation or compliance costs. Great leaders would be plentiful. Industry players would work more intelligently, and together.
This doesn’t mean everything would be perfect. We are still human after all. However, it is pretty clear where the pivot point is. Still, even though the NAR’s last conference heralded plans to develop a new ‘Code of Excellence,’ the association said it didn’t plan to make it any tougher to become a Realtor. It’s not clear how the ‘Code of Excellence’ will be different from the existing Realtor Code of Ethics, or how it will be enforced, but it is clear that while NAR understands the challenges and dangers, it also needs the cash and lobbying war chest that membership fees support.
For now it is up to those that care about being in the game for the long haul to step up and lead.
How to Make This Information Work for You
Commit to learning, excellence, ethics, and to lead by example.
For those in this second camp, the info provides great insight into how to make huge leaps in market share, disrupt the industry in a good way, and stay ahead. Based on the data, and this top danger list, the most common sense strategies and tactics to make big wins include:
- Attract and retain the most ethical and serious team members
- Anticipate and plan for regulatory changes, or have a part in crafting them
- Maintain a lean and speedy decision making and implementation process
- Stay on top on new trends and techniques, or hire those that get them
- Recognize when not to weaken yourself battling industry competition, and when to use the in-fighting of others to make market share gains
- Always be working on what’s next
- Don’t put yourself out of business by racing to the bottom of pricing
- Help unify industry forces
- Stay lean and operationally efficient
- Have a clear decision making guide that keeps your organization focus on what’s most important at all times
