Whether you’re refining your business model, mastering new technology, or finding a strategy to take advantage of the next market boom, Inman Connect New York prepares you to take a bold step. The next chapter is about to begin. Please join us. Join us and thousands of other real estate leaders from January 22-24, 2025.
Never let a good crisis go to waste. That seems to be the message of a new report released by real estate consultancy T3 Sixty, which released a sequel to its influential Danger Report on Wednesday, months ahead of schedule.
‘The Opportunity Report’ identifies 20 key opportunities for the real estate industry following the National Association of Realtors’ historic antitrust settlement and resulting changes to business practices and U.S. board structure .
The 114-page report asks, “Will the recent lawsuits really result in billions of dollars in savings for consumers, or will it simply result in lawyers siphoning off fees without any real savings to consumers, and will have serious implications for the real estate industry?” It will take time to determine whether this will only cause further confusion.”
“However, these lawsuits could act as a catalyst for industry-wide change that prompts business model redesign, greater efficiency, higher standards, greater transparency, and the adoption of new best practices. Now is a key moment of change.”
The report urges agents, agents and brokers to embrace fee separation, position themselves as trusted advisors, and ethically deploy artificial intelligence to make the buying and selling process more efficient. Demanding high licensing standards.
“This pivotal moment presents a clear opportunity for intermediaries to reaffirm their value to both agents and consumers,” the report said.
“This requires strategic thinking, bold vision, and decisive action. However, many brokerages still rely on outdated models to compete in today’s rapidly evolving business and technology environment. If we don’t actively disrupt our own models, we could see significant external disruption between 2025 and 2030.”
This report also covers organized real estate. The bill would also allow multiple listing services and real estate agent associations to divorce so that the MLS would not be influenced by real estate agent rules and bureaucracy, and would allow both types of trade associations to consolidate and increase their numbers. We are asking for it to be reduced.
“While associations should focus on their core missions such as ethics, political advocacy, and education, MLSs should focus on providing a wide range of data-driven value to brokers and agents,” the report said. states.
“To be competitive in today’s real estate industry, MLS organizations need to operate independently, free from restrictions and political influence imposed by real estate agent associations,” the report adds.
“This transformation will meet current market demands and position MLS as an essential resource in the industry.Furthermore, many regulators may not fully understand the impact of recent settlement agreements. Therefore, MLSs should focus on ensuring that consumer protection and transparency are well recognized and understood.
The report also advises the NAR to regain the trust of its members by making political advocacy its core mission. Eliminate tripartite agreements between national, state, and local real estate agent associations. and reform its governance structure.
“Voluntary membership across all association levels creates a healthier, more committed, and transparent environment, making associations more relevant and responsive to their members,” the report said. states.
“This represents a significant shift in the association’s mindset, which has traditionally focused on headcount, and will require a reconfiguration of real estate agent structures, value propositions and operating models.
“The real estate agent ecosystem plays a critical role in a thriving industry, and by streamlining and centralizing the responsibilities of each tier, consumers, brokers, and agents benefit from more agile and dynamic services. You can receive it.”
The report cites the current heated debate over NAR’s clear cooperation policy, which requires listing brokers to submit listings to real estate agent-affiliated MLSs within one business day of publicly selling them. However, he has not expressed his position. Rather, the report calls for NAR to make policy decisions and work to unite the industry behind those decisions.
“Supporters of the Chinese Communist Party typically focus on home buyers, while those advocating for the removal of the Chinese Communist Party focus on the interests of home sellers,” the report states.
“The great opportunity for the industry lies in coming together to ensure that consumers, brokers, and agents have access to a transparent real estate market that supports a dynamic U.S. real estate industry and is the envy of the world.” It has become a target of
The Opportunity Report is sponsored by Homes.com, whose parent company is real estate giant CoStar.
Andy Florence |Credit: CoStar Group
“The Opportunity Report, like its predecessor, the DANGER Report, is a valuable asset for navigating the changes coming to the real estate industry,” CoStar Founder and CEO Andy Florance said in a statement. Ta.
“Our sponsorship of this report reflects our belief that new business models can and will emerge from these crossroads. Homes.com We are ready to complement and look forward to working with our industry partners to offer even more to our customers.”
whether CoStar had editorial influence over the report, whether it had a say in its content, or whether it saw the report before it was finalized; In response to a question, T3 Sixty spokeswoman Cynthia Nowak told Inman: Provided free of charge to the industry. They had no editorial/content influence over the report. ”
In May 2015, NAR released the DANGER Report detailing 50 threats, risks, and challenges that the real estate industry faced then and will face in the near future.
NAR commissioned Stephen Swanepoel, T360’s executive chairman and author of both reports, to produce the 164-page report, which included interviews with 70 prominent figures within and outside the industry, and a survey that received nearly 8,000 responses. This report was compiled after extensive research.
Among the top 10 threats listed in the report are: “Fees are spiraling downwards. A variety of powerful forces are putting significant downward pressure on real estate fees.” I did. The report highlighted that the U.S. real estate market could be susceptible to “moderate declines and fee readjustments, similar to the rest of the world.”
For this reason, the hazard report was cited in a significant commission case known as the Sitzer case. Barnett and Swanepoel themselves were called to the stand at trial in the case in October.
The Opportunity Report provides an assessment of the accuracy of the DANGER report as evaluated by Open AI’s ChatGPT, which found that the DANGER report’s predictions were “very prescient.”
Jack Miller |Credit: T3 Sixty
“This is an AI tool, so you can debate its use, but in terms of what the DANGER report actually delivered, overall the accuracy of the report was rated at 83 (percent),” T3 Sixty said. said Jack, President and CEO. Miller said during a webinar Tuesday.
“Things like regulatory action have had a 100 per cent outcome. We gave it a positive rating in that regard because things like low-skilled agents had a negative impact on the industry.”
“This report is a roadmap for industry experts to bring about change in their businesses,” he added.
The Opportunity Report, like its predecessor, is based on one-on-one interviews with industry leaders. The names of the 51 leaders interviewed are listed at the end of the report, including Florence as well as Gino Brefali, president and CEO of HomeServices of America. Celebrities are also included. James Dwiggins, NextHome co-founder and CEO. Damian Eales, Move Inc. CEO. real estate coach Tom Ferry; real estate consultants Rob Hahn, Greg Robertson, and Brian Boero; Gary Keller, co-founder of Keller Williams. and Zillow executive Errol Samuelson.
“Artificial intelligence, business models, consumer relations, the structure of organized real estate, the Chinese Communist Party. All the major topics were on the minds of 50 of the smartest people in the industry, so in that report. It was picked up,” Miller said.
According to the report, the 20 key opportunities facing the industry are:
Separate compensation for buyer and seller agents Establish best practices for buyer services Build trust with consumers Elevate your agents: A new perspective on the role Digitize real estate transactions with AI Thrive in commission compression Reinventing the brokerage model for a new era Harnessing the power of mergers Maximizing the power of your team Increasing market transparency: A clear path to collaboration Separating MLS organizations from real estate agent associations Modern day new professionals Explore the future of real estate with us Maximize value through MLS integration Rebuild trust: Strategies to re-engage NAR members Tripartite agreements evolve across industries Realtor associations need to streamline and come together Rethinking what realtor association leadership means Prioritizing advocacy as NAR’s core mission Strengthening professionalism with strong licensing requirements Making homeownership an affordable dream again
See the full deal report.
Email Andrea V. Brambilla.
Like me on Facebook | Follow us on Twitter
