Where are we heading?

Though change is a given, some things are certain to stay the same.

by John Eckstrum   What might our industry look like five years from now?

I think about this often, and I know I’m not alone. Many conversations I have with fellow REALTORS® revolve around this topic. We have all heard what scores of authors and industry speakers believe the future holds. These questions always lead to conversations with answers that are interesting and sometimes scary.

Often, a peek into history gives a glimpse of what to expect in the future. A long time ago, Sears, Roebuck and Co. bought a major franchise and was going to be the "one-stop shop" for America. TWA bought a franchise and never got off the ground. Savings and loans entered the real estate business. The advice at that time was to buy a savings and loan if you wanted to stay in real estate. Well, we all know what happened. They’re all missing in the real estate industry today.

Looks like we’ve just about come full circle, with banks attempting to offer real estate brokerage services along with property management services. While the outcome of this "Big Grab" is still undecided, I’m cautiously optimistic that our efforts will be successful, and that American consumers will be best served by not allowing banks to directly enter the real estate business.

Financial institutions are not the only industry to watch out for. I’ve heard experts who predict that utility companies may be a feared competitor. I don’t know about you, but I never expected to be competing with the local electric company. Others predict that a technology company will find a slick solution for consumers to bypass traditional methods (that means you and me) for real estate transactions. Some people I know feel that a threat will come from within our own ranks. Discount brokers, so-called e-brokers, and other nontraditional models will spell the end of brokerage as we know it, they say.

I know what I want to believe about the future...that the real estate industry will continue to evolve and change–a work in progress. I’m not so naive to think we won’t be challenged to adapt to new factors and conditions in the marketplace, but I just don’t see any sweeping change that will make professional REALTORS® obsolete. I don’t see consumers walking up to a customer service representative of the utility company and asking to see a real estate representative when buying or selling their homes. I have difficulty imagining a Web site sophisticated enough to counsel a customer during competing-offer negotiations.

So the picture of the future starts to take shape in my mind. Five years from now, I think there will be dedicated professionals advising consumers as they make their way through the complex process of buying, selling, leasing, and managing real estate. I believe those professionals will be REALTORS®. No, I don’t know exactly what gadgets we will be using, and I’m not sure what the latest competitive threats will be, or which business models will prove most profitable and worthy. But, I am certain that through our commitment to the highest standards–professional and ethical–and offering outstanding services, REALTORS® will remain at the heartbeat of the real estate industry. As we’re all in this together, I would like to know what you think. Let me hear from you. Send me an e-mail to texasrealtor@tar.org.

Photo by Dennis Fagan.

home   current issue    top 10    resources 

discussions   contact us   search

Buyers & sellers, visit www.texasrealestate.com.
REALTORS®, visit www.tar.org.