Check out this great e-Partner SlideShare presentation on LinkedIn that describes the current state-of-affairs of the real estate industry and its Broker/Owners, offering detailed recommendations to an industry, Donald Teel refers to as "under house arrest."

1.
Front Face & Profile
an industry under house arrest
Donald S. Teel – Founder
President and CEO
e-Partner®
Copyright © 2007, e-Partner USA, Inc. Distribution without alteration permitted. www.ePartnerUSA.com 1

2.
Mug Shot: A New Front Face & Prof
file
Originally Posted by Donald Teel at REALono
y omics on Au
ugust 26th, 2
2007
We have entered a New Real Es
e state Econom Our bus
my. siness
models w be orde by a new s of rules and realities
will er set
which w have referred to as T Ten Com
we The mmandments of
s
the New Real Estate Economy.
w e
The new economic r
w rules and re
ealities form the New Moodel
Math for an industry that is morphing from its broker-
r y m
centric a agent-centric roots to a decide
and edly consumer-
centric mmodel. Who oever writes the new rul and
les
effective addresses the new re
ely ealities will, to a large d
, degree, control the gam and much of
me h
its econo
omic outcom
me.
Mugging for the Ne Digital Camera
g ew
A new mug shot is em merging and we are fina able to sketch the f
d ally features of t front fac
the ce
and profi of an ind
ile dustry in pos
ssession of e
economic and operating models that are underggoing
massive revision. Wh emerges will become the new r
hat s real estate p
professional and busines
ss
operating profile for the coming decade.
g r g
Images o the old mu of total b
of ug brand separaation, rugged individualism and atte
empts to ha it
ave
all will b
become econ nfeasible. Th consumer demand fo services has raised the
nomically un he r or
price of aadmission in an arena w
n where there will not be many front seats. We w simply have
will
to do mo for the all powerful consumer th we can afford to do this will b a huge
ore a han o, be
economic reality tha will lead t new oper
c at to rating rules.
Defining the New Broker/Ow
g wner Realit
ties
New Rea ality 1: We’r moving at light speed and manag
re t d ging change will become a fundame
e ental
and delib
berate actio for busine success. Broker/Own
on ess ners will no longer need to throw
d
themselv under th bus; the b will simp run us do
ves he bus ply own! Business will large become t
ely the
managem ment of chan in red hot crucible.
nge
Our new Model Math reality must include w
h what REALon nomics calls “change maanagement.” ”
Manage c change or watch your bu
w usiness erod The chan
de. nges will inc
clude brand new, never
before se models, that trim fa and speed up efficien
een at d ncies…more specificity on this later in
r
this post. Understannding the Re Estate In
eal ndustry’s Eco
onomic Eras helps clarif how chang
fy ge
and technology can work for us or against u
w us.
New Rea
ality 2: Brok
ker/Owners w see furt
will tability unle they adopt
ther challenges to profit ess
consume
er-centric, tr
ransparent r
real estate b
business moddels that tru partner w
uly with the
Copyright © 2007, e-Pa
t artner USA, Inc Distribution without alterati permitted. www.ePartner
c. ion rUSA.com 2

3.
consumer. Things like true conversations in the market place that allow the consumer , peer-
to-peer (seller to buyer and relocation transferee with resident) opportunities and a
blogosphere the likes of which we can’t even begin to fathom.
It’s time for the industry to embrace the inevitable Democratization of Real Estate. And we
will need to start with unfettered access to property information on at least a statewide and
perhaps eventually a national basis. This is our new reality and it will be a reality we adopt by
choice or by prescribed will of forces not friendly to the industry. If we don’t grab it and go
with it we may see our business models die.
New Reality 3: Coalition real estate. I can hear some of you asking, “what the…?” Coalition
real estate is a REALonomics term representing a new type of merger/acquisition model that
involves the creation of hybrid relationship between the strangest of bedfellows. The old M&A
model will become scant, with new technology-driven relationship becoming a “norm”
without anyone necessarily owning it “ALL.” We can’t afford to own it all, can we?
Coalition Real Estate is an economic “Club-Med” that enables us to have all things without
having all things…arghh, this one is tough! In the New Real Estate Economy, coalitions will be
a fact necessary to the management of change and the demands of the consumer. It will
involve new agent sharing models, technology pyramids that collate the tools for groups of
Broker/Owners to utilize with optimal price points. Transaction complexity within the lending
and brokerage industries together with consumer demands will force us toward coalition
strategies as a normal part of business.
New Operating Rules for the New Realities
The new realities push new rules into the market place and these new rules are the dots
Broker/Owners begin to connect for optimal business model strategies. However, let’s not
think that we have no control over the rule-making and design of the real estate industry for
the next decade. Although many Broker/Owner have abdicated some critical authorities in
the industry, it’s not too late to exercise strong influence on content of the new rule book.
Although REALonomics will not have time or space to qualify each of these new operating
rules, the economic primer for them includes, but is certainly not limited to, the following
ten industry considerations:
1. Deliberate reduction, as a matter of policy, in the number of real estate agents
allowed to practice and thus a reduction in mediocrity.
2. Business entities that are set up to study, manage and influence industry change on
behalf of Broker/Owners and the industry itself.
3. Refined definitions of the models and economic blueprints for core services utilized by
Broker/Owners.
4. Partnerships and consolidation of services between competing franchisors - ouch!
Indeed, franchisors face the same famine of profitability we all face.
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4.
5. Implementation of Paperless Tools for front and back end transaction management
favorable to agents, owners and consumers. We are Awash in Paper!
6. Removal of the structural impediments inherent in the old MLS property models so
that transparency and utility can become the norm.
7. Demolition of the local Association of Realtors model in favor of at least
regionalization and ultimately, nationalization in favor of the consumer.
8. A new mandate for NAR that redirects and allocates our resources in favor of models
and programs benefiting Broker/Owner profitability.
9. Adoption of high-speed, data-rich property evaluation tools, including rapid price
evaluation technologies at affordable costs.
10. Replacement of old Internet lead generation models with transparent partnerships
with the consumer.
These new business rules will evolve from the realities we now face as an industry. Together,
these rules, with others yet to be articulated, will form our new Front Face and Profile. Our
problem today is we are mugging for a camera that either does not exist or is snapping photos
of competing models.
It’s going to be a very cool decade ahead of us. Enjoy the ride, embrace the pace…enjoy the
thrill. After all, you’re already on the roller coaster. Buckle up…grease the bearings…here we
go!
Donald Teel, is the Founder, President & CEO of e-Partner and the Editor of REALonomics.net
an industry blog. Mr. Teel is a former Del Webb Corporation Vice President of Sales and
Marketing and former owner of Prudential Foothills Real Estate a regional, multi-office
company located in northern, Arizona that he sold in April, 2005.
For additional confidential information about the consulting services of e-Partner, visit
www.ePartnerUSA.com or, if you prefer, call e-Partner toll free at 1-877-380-1000.
Copyright © 2007, e-Partner USA, Inc. Distribution without alteration permitted. www.ePartnerUSA.com 4