Are You On The Bullet Train To Irrelevance?


Published on

Staying relevant with today’s homebuyers requires adapting to change and moving beyond and outside the doldrums of the norm. This presentation:
• Looks five years into the future for what changes are predicted by industry leaders
• Discusses the “power shift” from real estate professionals to consumers
• Examines Consumer/Homebuyer driven Business Models
• Teaches students how to utilize the “Next Generation” business model canvas to service the next generation of homebuyers.

Published in: Real Estate
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Created new expectation
  • Created new expectation
  • Are You On The Bullet Train To Irrelevance?

    1. 1. Oscar Gonzales Copyright 2013 Are You on the Bullet Train to Irrelevance?
    2. 2. Oscar Gonzales Copyright 2013 What changes do you see coming in the Next 5 Years? Socially? Economically? Real Estate Industry?
    3. 3. Oscar Gonzales Copyright 2013Continued Uncertainty in the Economy and MarketplaceAttractive affordability conditions generated by very low mortgage interestrates appeared to be bringing some buyers back to the market.Pace of a home sales recovery still depends more on job creation and anaccompanying rise in consumer confidence.Recent trends in oil, producer and commodity prices are raising concerns aboutanother round of “recession.”Mortgage rates are expected to remain low for awhile but qualifying for amortgage is still very challenging.The Euro…..
    4. 4. Oscar Gonzales Copyright 2013 Evolution of the MLS
    5. 5. Oscar Gonzales Copyright 2013 For the first time in history there are 6 living generations in America. • GI Generation (1901-1926) Generational • Silents (1927-1945) Differences • Boomers (1946-1964) • Generation X (1965-1979) • Millennial’s (Gen Y) (1980 -1998) • Generation Z (1999 – present) • And………
    6. 6. Oscar Gonzales Copyright 2013 The Next 5 Years ??????
    7. 7. Oscar Gonzales Copyright 2013 4 of them are working together in the The generational disconnect can be workplace and exist side by side. bridged. • The traditional industry models Generational We need to recognize the growing become less appealing and relevant to differences in the consumers each succeeding generation. Differences needs, preferences and values and do something about it, otherwise they will deem you irrelevant.
    8. 8. Oscar Gonzales Copyright 2013 Realtors operate in markets. • None operate in the same market in Market which they were composed, structured or functioned. Structure: • Consolidation is a common trend in Consolidations many markets. • Realtors are more different than they & are similar because of the demands of Specializations the marketplace.
    9. 9. Oscar Gonzales Copyright 2013 It will not be Business As Usual!
    10. 10. Oscar Gonzales Copyright 2013 The Tipping Point Is defined as: • The moment of critical mass, the threshold, the boiling point. • “Mysterious” sociological changes that influence our everyday life.
    11. 11. Oscar Gonzales Copyright 2013 When Did the Power Shift to the Consumer? • In 1950 with the introduction of a game-changing technology Newton’ s second law of thermodynamics was now in play: Objects at rest tend to stay at rest especially if they have had a long day at work.
    12. 12. Oscar Gonzales Copyright 2013 When Did the Power Shift to the Consumer?
    13. 13. Oscar Gonzales Copyright 2013
    14. 14. Oscar Gonzales Copyright 2013Consumers listen Technologymore to one another damaged thethan they do to traditionalmarketing messages purchase funnel.of advertisers inthe traditionalmedia.People are It’s not a questionincreasingly of technology, it’s aindividualist. They question ofescape any customercategorizing. relationships.
    15. 15. Oscar Gonzales Copyright 2013 Organizational Responses • Many brokers and agents spend all day defending what they do, how they sell services and try to prevent their organizations from being devoured by the “NEW.” • Unaware that everything that is happening in the real estate industry is ever more likely to happen on a screen or handheld device. • Denying that traditional Media is in a death spiral
    16. 16. Oscar Gonzales Copyright 2013 If You Strap An Engine on a Horse do you have a Car?• Every Broker and Agent must ask themselves what business they are in and whether their traditional idea of “how to be in that business” is still relevant to what the customers want.• You can’t solve a problem before you know what the problem is: otherwise you wind up strapping engines on horses.
    17. 17. Oscar Gonzales Copyright 2013 What’s Driving the Shift? The industry faces not one but four interlinked and influencing variables Where a change in one influences the other three
    18. 18. Oscar Gonzales Copyright 2013 Four Factors Shaping Our Future Consumers Content Curation Convergence
    19. 19. Oscar Gonzales Copyright 2013 Consumers Choose what, how & when they consume
    20. 20. Oscar Gonzales Copyright 2013
    21. 21. Oscar Gonzales Copyright 2013 Profile of Realtors & Homebuyers• Median age of a Realtor is 56 • Largest share of homebuyers years old are 25-34 years old; Median age overall is 45 years old• 57% are female • 37% are first-time• 75% of Realtors have real homebuyers estate as their only occupation • 21 % are single females; 12% are single males• 9% of Realtors are foreign born • 15% of first-time home buyers are foreign born; 7% are repeat
    22. 22. Oscar Gonzales Copyright 2013Profile of Realtors & Homebuyers • 56% of Realtors have a smart • 88% of homebuyers used the phone with wireless internet internet to search for a home and email access • 89% used a real estate agent • 91% of information on the or broker website is the members own listings • 30% of buyers used print newspaper ads to find info on • Almost 1/2 of members are homes for sale using social media. • 2% of buyers found the home • Realtors spend a median of they purchased using print $250 to maintain their ads websites
    23. 23. Oscar Gonzales Copyright 2013 Shift from Dependence to Choice •More choices: accessed more easily •Smart phones and iPad’s •More kinds of choices •Not just when and how but increasing variety of features •Great ease of use •Voicemail vs. Text •Choice not to commit •They expect an option to make full commitment •Increasing sense of entitlement •As each new generation is offered choice, their standards go up and brokers and agents must respect the new standard
    24. 24. Oscar Gonzales Copyright 2013 Shift from Dependence to Choice Success in managing consumer choice depends on giving up the habits of the old uneven power relationships and forming a new more equal partnership.
    25. 25. Oscar Gonzales Copyright 2013 Content ………becomes King!!
    26. 26. Oscar Gonzales Copyright 2013 Content……..becomes King! The Internet makes its possible for buyers and sellers to find information and each other without the middleman. Consumers have little reason to pay for delivery that isn’t digital anymore, and digital delivery doesn’t create comparable monopolies to support content.
    27. 27. Oscar Gonzales Copyright 2013 Curation Managing Information Overload
    28. 28. Oscar Gonzales Copyright 2013 Curation “Often what I need to know before I use any What consumers trust has changed: of their expertise is Instead of an expert, they want to hear more about myself and from the source – my community, • The person who stayed in the room meaning the people I • Ate the meal trust. • Drove the new car • Got the home loan I could figure it out • Bought the house myself, but so often time is exactly what I Informati on Scarcity Informati on Abundan Information Overwhelm don’t have.” ce ~ The Consumer
    29. 29. Oscar Gonzales Copyright 2013 Convergence The Forms of Communication
    30. 30. Oscar Gonzales Copyright 2013 Convergence • Many platforms that seem important today will likely be replaced in a few years. • The ongoing convergence of technologies, media forms and other aspects of our lives will continue to intensify the previous three factors.
    31. 31. Oscar Gonzales Copyright 2013 Convergence • To focus on who will win is to miss the point about convergence: The new doesn’t replace the old; the new and the old combine.
    32. 32. Oscar Gonzales Copyright 2013 Disruptive Business Models
    33. 33. Oscar Gonzales Copyright 2013 The Definition: Disruptive business models focus on creating, refining, reengineering or optimizing a product/service, role/function/practice, category, market, sector, or industry. The most successful companies incorporate disruptive thinking to gain distinctive competitive value propositions.
    34. 34. Oscar Gonzales Copyright 2013 Disruptors
    35. 35. Oscar Gonzales Copyright 2013 Are You Disruptive? • When was the last time your company embraced change and did something innovative? • When was the last time you rolled-out a new service offering? • Are your management and executive ranks void of youth? • Do people in your brokerage laugh at new ideas? • When was the last time you sought out a strategic partner to exploit a market opportunity?
    36. 36. Oscar Gonzales Copyright 2013 Are You Disruptive • Does your organization focus more on process than success? • Are agents who point out problems looked down upon? • Do you settle for just managing your agents or do you inspire them to become innovators? • Has your brokerage embraced social media? • Does anyone on your executive team have a coach or mentor? • Has anyone on your executive team attended a conference on strategy or innovation in the last year?
    37. 37. Oscar Gonzales Copyright 2013
    38. 38. Oscar Gonzales Copyright 2013 Reading Recommendations
    39. 39. Oscar Gonzales Copyright 2013 “We cant solve problems by using the same kind of thinking we used when we created them.” Albert Einstein “Being Disruptive helps to keep you off the Bullet Train and Relevant”
    40. 40. Oscar Gonzales Copyright 2013 Are You on the Bullet Train to Irrelevance?