Reimagining Real Estate: A New Model on the Horizon. Like the travel and entertainment industries, the real estate industry is poised for a significant transformation.
Remember how travel agents once dominated vacation planning, and Blockbuster was the go-to place for movie rentals? Technology disrupted both, leading to the rise of online travel booking and streaming services.
Similarly, a new real estate model may soon emerge, potentially eliminating Zillow’s Go and Show activities. This shift could have profound implications, especially for clients leaning on attorneys for document reviews. Also on buyers paying fees to view homes, and whether real estate agents should consider obtaining a law degree.
The impact on first-time homebuyers with limited resources and marginalized communities must also be considered.
The End of Zillow Go and Show?
Let’s explore the potential elimination of Zillow’s Go and Show feature. Like how online travel booking made travel agents less central, Zillow’s Go and Show allows prospective buyers to schedule and visit properties with a real estate agent “at the ready.” The agent gets the lead and rushes out to show the buyer a home. The agent is hoping that the buyer agrees to hire the agent as their buyer agent. Most of the time, it doesn’t work like that, and the agent showed the home for free, wasted gas, time, and money.
However, as a new model emphasizing enhanced agent involvement and personalized service emerges, the Go and Show concept will most likely be eliminated. The updated Zillow model has the potential buyer signing a nonexclusive agreement with the agent before the buyer can see the home. Of course, that creates many problems because having a buyer pick an agent on the fly like that seems strange. It is a nonexclusive agreement and does not lock down the buyer, and again, the agent is providing a free service.
This shift would be similar to the customized service some travelers still seek from travel agents.
Increased Reliance on Attorneys
This new real estate model could also increase reliance on attorneys for document reviews. For example, I spoke with a potential seller this morning who wanted to give an attorney a try to sell his home rather than work with a real estate agent. He said the attorney wished to pay $600 to review the documents, and he negotiated the price down to $500.
When we reimagine real estate and as transactions become more complex, clients might prefer the security and expertise that legal professionals provide, similar to how travelers might seek expert advice for complex travel itineraries. Attorneys can offer detailed insights and ensure that all legal aspects of a transaction are thoroughly examined, reshaping the traditional role of the real estate agent.
Reimagine Real Estate: Buyers Paying to View Homes
Another intriguing aspect of this evolving landscape is the possibility that buyers might begin paying fees to view homes. This concept parallels how Blockbuster once charged late fees, adding a financial component to the service. Although unconventional, such fees could ensure that only serious buyers engage in property tours, streamlining home-buying. These fees could be applied towards the final purchase, incentivizing buyers to commit to properties they are genuinely interested in.
Impact on First-Time Homebuyers and Marginalized Communities
However, this shift could present significant challenges for first-time homebuyers and marginalized communities, similar to how changes in the travel and entertainment sectors disadvantaged certain groups. First-time buyers, often with limited financial resources, may find additional fees to view homes prohibitive, delaying their entry into the housing market. For minorities, who already face systemic obstacles in securing home loans and accessing quality housing, such fees could exacerbate existing disparities, making homeownership even more elusive.
Should Agents Consider a Law Degree?
Lastly, the question arises: should real estate agents consider obtaining a law degree? Given the increasing complexity of transactions and growing reliance on legal expertise, having a background in law could be immensely beneficial. This scenario is akin to travel agents specializing in luxury or adventure travel to add value. Agents with legal training would provide added value to their clients and navigate the intricacies of real estate law with greater confidence. However, pursuing a law degree is a significant investment of time and resources, and agents must weigh the potential benefits against the demands of their current roles. Will law schools incorporate the cost of obtaining a real estate license as a package deal?
Conclusion: Reimagine Real Estate
In conclusion, the real estate industry stands on the brink of a significant transformation. A new model that potentially eliminates Zillow’s Go and Show activities could lead to greater reliance on attorneys for document reviews. Also, the introduction of buyer fees for home viewings and a reevaluation of the qualifications needed to succeed in the field. As these changes unfold, real estate professionals must remain adaptable, continually seeking innovative ways to provide exceptional service and meet evolving client needs.
Moreover, it is essential to consider the impacts on first-time homebuyers and marginalized communities. As ethical brokers, we have to ensure that these new models do not inadvertently increase barriers to homeownership. By addressing these concerns proactively, the real estate industry can strive towards a more equitable and inclusive future, similar to how travel and entertainment evolved to better serve their diverse customer bases.
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