Wednesday, July 06, 2016 3:44:22 PM
A study completed at Oxford University in the U.K. (http://dtn.fm/X1kBb) on jobs that were most likely to be replaced by computerization placed real estate brokers at number 40 out of the 702 positions surveyed, with a 97 percent chance of losing out to computers. Digital technologies are disrupting many industries, particularly those whose raison d’être is the reduction of information asymmetries. Upstarts like Airbnb and Uber Technologies have revolutionized business paradigms, and the waves of disruption are already lapping on the shores of the real estate domain. The real estate industry will have to keep up or give up. With its Agent-Owned Cloud Brokerage, eXp World Holdings (OTCQB: EXPI) is offering brokers and agents the opportunity to keep up.
Disruption is the new buzzword, but it’s a reality as well. Now, homeowners can list a For Sale By Owner (FSBO) on ListingDoor, which Forbes has called the ‘Uber for Real Estate Sales’. If that is not alarming enough, the ListingDoor site proclaims that it has ‘Everything you need to sell and market your home FSBO, without the hassle of a real estate agent’. ListingDoor gives home sellers a complete market analysis with an Intel Report, which removes any information advantage a broker may have. A property owner is given a custom website to list his or her property. The best of the property can be highlighted in up to 24 images. He is provided with listing brochures and a colorful ‘For Sale’ yard sign printed and delivered next day by courier. In addition, the listing is syndicated to popular real estate sites such as Zillow (NASDAQ: Z), Yahoo! (NASDAQ: YHOO) Homes, and Trulia (NYSE: TRLA).
The revolution has not quite deposed real estate agents and brokers, however. A recent research report (http://dtn.fm/nW6aM) on eXp World Holdings, issued by Fundamental Research in April 2016, points out that, for most Americans, the purchase of a home involves the largest financial outlay. It also cites statistics published by the National Association of Realtors:
‘…approximately 87 percent of buyers recently purchased their home through a real estate agent or broker (up from 69 percent in 2001), 8 percent purchased directly from a builder or builder’s agent, and 5 percent directly from previous owners. In the case of sellers, approximately 89 percent of sellers used a real estate agent when selling their home. For-Sale-by-Owner (FSBO) sellers accounted for just 8 percent, and such properties are typically sold to someone the seller knows.’
The changing landscape offers not just threats, but opportunities, as well. There are many advantages to working with a real estate agent, as this Forbes article (http://dtn.fm/e7X0C) points out. First, don’t try this at home; selling or buying a property is not as easy as it looks on TV. It will take you time to track down the specific information you require, and, even then, information is not knowledge. Only experience will allow you to use that information wisely. Second, a middleman focuses the negotiation on the factors that matter. Direct contact between buyer and seller risks bringing personality issues to the forefront. A deal can fall apart because the buyer doesn’t like the seller, even though he likes the house, or because the seller can’t bear the thought of his home falling into the hands of ‘someone like that’.
Thirdly, how up-to-speed are you on the legal issues? These can be notoriously arcane. Wouldn’t it be better to let a professional handle them? Fourthly, in a one-on-one deal, the maxim caveat emptor applies, whereas agents and brokers must follow regulatory guidelines and rules when conducting business. It’s possible, depending on state law, that a fiduciary relationship may arise, which means that the agent or broker is bound to put your interests ahead of his or her own. Fifth, for the buyer, monetary costs may go down before the sale but go up after the sale. The greatest danger for the lone ranger is not knowing what he does not know.
The Agent-Owned Cloud Brokerage offered by eXp World Holdings’ wholly-owned subsidiary, eXp Realty, is a full service national real estate brokerage platform. Its cloud-based format reduces the costs associated with operating a brick-and-mortar office, yet, through a 3-D environment, provides all the services offered by traditional brokerages. In addition, agents can draw on services that include training and education, coaching and mentoring, and transaction and technical support. eXp Realty has already added over 1,100 agents and brokers operating in 40 states and Canada to its platform.
For more information, visit the company’s website at http://investors.exprealty.com
Recent EXPI News
- eXp World Holdings Reports Q1 2024 Results • GlobeNewswire Inc. • 05/01/2024 08:15:00 PM
- Kendall Bonner Named Vice President of Industry Relations at eXp Realty • GlobeNewswire Inc. • 04/30/2024 04:00:00 PM
- eXp Realty Announces Strategic Leadership Changes to Enhance Global Growth • GlobeNewswire Inc. • 04/29/2024 07:00:00 PM
- Wendy Forsythe Joins eXp Realty as Chief Marketing Officer to Propel Agent-Centric Initiatives and Amplify Brand Reach • GlobeNewswire Inc. • 04/25/2024 01:00:00 PM
- eXp Realty Expands Global Network in Second Quarter, Welcoming Top Agents and Securing High Industry Honors • GlobeNewswire Inc. • 04/19/2024 04:00:00 PM
- eXp World Holdings to Announce First Quarter 2024 Results on May 1, 2024 • GlobeNewswire Inc. • 04/17/2024 07:00:00 PM
- Leading the Industry in Sides, eXp Realty Celebrates Its Agents' Remarkable Achievements With the Top Producers Lists for 2023 • GlobeNewswire Inc. • 04/16/2024 04:00:00 PM
- eXp Realty Names Leo Pareja as CEO to Drive Next Era of Growth and Innovation • GlobeNewswire Inc. • 04/05/2024 01:00:00 PM
- eXp Realty Expands Executive Team With Key Human Resources and Technology Leadership Appointments • GlobeNewswire Inc. • 03/28/2024 03:30:00 PM
- eXp Realty Leads the Pack in the RealTrends 500, Capturing Top Honors in Five Categories • GlobeNewswire Inc. • 03/22/2024 02:00:00 PM
- eXp Realty Pays More Than $230 Million in Revenue Share and Equity Benefits to Agents and Brokers in 2023 • GlobeNewswire Inc. • 03/11/2024 07:56:01 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/08/2024 11:35:03 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 11:40:57 PM
- Form 144/A - Report of proposed sale of securities: [Amend] • Edgar (US Regulatory) • 03/01/2024 10:05:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/01/2024 07:46:43 PM
- eXp World Holdings Revolutionizes Real Estate Radio With "KGCI Real Estate on Air" Partnership • GlobeNewswire Inc. • 02/29/2024 02:00:00 PM
- eXp World Holdings Reports Q4 and Full-Year 2023 Results • GlobeNewswire Inc. • 02/22/2024 09:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/22/2024 08:58:55 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/02/2024 09:27:17 PM
- eXp World Holdings to Announce Full-Year and Fourth Quarter 2023 Results on February 22, 2024 • GlobeNewswire Inc. • 02/02/2024 05:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/01/2024 02:00:12 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/23/2024 05:30:26 PM
- eXp Luxury Solidifies Expansion Into New International Markets • GlobeNewswire Inc. • 01/18/2024 02:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/17/2024 07:58:08 PM
- Form SC 13D/A - General statement of acquisition of beneficial ownership: [Amend] • Edgar (US Regulatory) • 01/12/2024 02:00:36 PM
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