An idea for discussion - long

[over40]

Preface:

The real estate industry is changing. Consumers are more empowered and the role of professionals is slowly being redefined by advancements in technology, shifting demographics and economic realities. There is a need going forward to increase the value proposition of agents in the mind of consumers. While real estate is a local business, the transaction process of buying and selling real estate is relatively straightforward.

Practioners that make up the agent/broker base hold untold amounts of business experience, creative power and entrepreneural spirit. If these resources can be harnessed and turned torwards thinking about the economics of the transaction process, increasing professionalism and improving value to the consumer - everyone can benefit. Therefore I present the following with an eye on the future:

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I'd like to put forward an idea for discussion regarding forming a new collaborative business alliance for the estate profession. This would be something totally new and open to every licensed professional. It would be comprised of both a non-profit membership organization and an affiliated for-profit business holding company. (I am working on a mock-up "concept" website and will post a link soon)

The purpose of this organization would be to unite ALL brokers and agents together in order to address issues facing the industry. These issues include:

Rapidly Advancing Technology
Changing Demographics
Empowered Consumers
Regulatory Burdens
Competition from Vendors and Outside Firms
Licensing and Education
Consumer Perceived Value Disconnect
Data Standardization
And more...

What I am hoping we can come up with is an efficent framework and "mission" and make it into something that every agent will want to join and that they will recommend thier colleagues to join. Everyone should be part of this process and look at it as a 'movement' to improve the profession they work in.

I will start by listing a few key elements that I think the non-profit side should have:

1.) Local Chapters that mirror MLS boards
2.) Free basic membership and paid "supporting" membership
3.) Code of Ethics
4.) Strong PAC (Political Action Committee)
5.) Board of Directors / Advisors

The intial phase for this would be the building stage for getting everyone on board. It would be simply a matter of visiting a website and signing up... and then as membership grows then so would features and services. Participate as you want but get signed up. The key is to bring agents together so that they can be united to face the challenges ahead. This organization forms the basis for a comprehensive information
distribution and communication system that is sorely needed.

For-Profit Business Holding Company

Once the non-profit gains traction, a seperate for-profit holding company (partially owned by the non-profit entity, individual founding members of the non-profit, and outside investors) can be established to develop world-class solutions to compete the likes of Zillow, Move, ActiveRain, etc. and to purchase or form "end-line" companies serving the real estate sector (mortgage, title, insurance, software, etc). The holding company would have the mission to reduce overall costs and improve the value proposition of agents to consumers. Approx. 2-4 billion dollars would be needed to be raised to do this properly. The next couple of years is an opportune time to do this as company valuations are at historic lows.

Motivation

Why am I proposing this? There is huge opportunity in change, and whether we like it or not change is going to happen. We can either sit back and let others dictate how it will effect us - or we can take a proactive stance and have a say in how it happens. If we choose the latter then we can profit from it rather then venture capitalists or companies that are our so-called friends. This is a massive undertaking but if we don't do it then this fragmented industry will become more fragmented and the power will shift into the hands
of a few rather then the hands of many.

That's the idea on the table... please discuss.

[tsteuwer]

It sounds like you are trying to build another NAR.

[over40]

Not another NAR... an alternative organization that can unite ALL (key phrase "ALL") licensed professionals and address issues and do things that the NAR can't do or won't do.

The very reason our industry is where it is today is because everyone is into themselves and no one is looking at the big picture. This addresses the big picture and can benefit all agents and consumers.

This is an idea for discussion and I hope others will provide input.

[SLP-NYCT]

hummm;

Didn't we have this discussion a few months back.

Yes you can start another Trade Group (thats really all NAR is), but in the end it will take a great deal of money to get it up and running.

Read up on the history of NAR and how much trouble they had getting off the ground. Find out JUST HOW they figured out how to FORCE agents to join.

These are challenges you will face too. We are all (at least around here) literally FORCED to be NAR members if we want to participate with MLS.

[Bigtoe]

hummm;

Didn't we have this discussion a few months back.

Might have. This exact post is being discussed on another forum as we speak. Actually, all of over40s posts are posted on multiple sites.

[SLP-NYCT]

where is the other forum? Or do you mean another thread here on REW?

Also, Anyone thinking about this should read 9 Pillars of the Citadel by Dave Barry: http://www.barryfirm.com/dnld/Nine-Pillars-Citadel.pdf

[satxproperty]

where is the other forum? Or do you mean another thread here on REW?

Also, Anyone thinking about this should read 9 Pillars of the Citadel by Dave Barry: http://www.barryfirm.com/dnld/Nine-Pillars-Citadel.pdf

Was that white paper a commissioned study by the DOJ? Or what is in it for Mr. Barry?

Or are we sheep without a shepherd and destined to follow the herd to slaughter?

[Bigtoe]

where is the other forum? Or do you mean another thread here on REW?

agentsonline

[satxproperty]

agentsonline

Those guys are brutal over there.

[over40]

"Actually, all of over40s posts are posted on multiple sites."

Only two... this one and agentsonline and not all of them are posted each place. I go by "Broker" over there. This is a MUCH friendlier and more knowledgeable site that agentonline I have to say.

I have read the Barry paper and have written my own as well. This industry is poised for big change and agents aren't going to like what's coming as technology advances and money gets thrown at disintermediating them from the real estate transaction.

If anyone (agents only ) is open to viewing a VERY interesting concept for planting the seeds to maybe create an alternative to the NAR... I have info in a website. Send me a PM for a link and password. That's what this orginal post was about.