The Traditional Real Estate Brokerage Model Is Broken

In the last several months I have read the following 2 quotes from reputable Real Estate sources. Inman News asked the question “Is the traditional real estate model dying a slow death”? Robert Reffkin, the founder and CEO of Compass Real Estate said “brokerage firms as we currently know them will cease to exist by 2028”. Why do real estate visionaries see such a bleak future for traditional real estate firms? Perhaps a bit of history on the real estate business will be helpful.

Many years ago most real estate firms were small. A real estate agent, after getting his or her license, would gain experience and then gain more knowledge by getting a broker’s license. The broker, after gaining additional knowledge and experience, would expand business by hiring several other real estate agents. The broker would train and supervise those agents in order to provide a consistency of excellent service to clients. The brokerage business was “client-centric”, meaning that the focus was on the client and the emphasis of service was to fulfill the broker’s fiduciary responsibility to the client. The client, and the client’s best interest, always came first in the mind of the broker.

However, the real estate business has changed significantly. Now we have large national and franchise firms, with multiple offices employing hundreds of agents. The brokerage model has become “agent-centric” as large brokerage firms spend their resources to compete with one another to hire as many agents as possible. Because of this shift from a “client-centric” model to an “agent-centric” model, the client experience has suffered.

The BrokerInTrust Network was formed several years ago by other real estate visionaries in order to address this shift.  BrokerInTrust is a “by invitation only” network of top producing, highly experienced, knowledgeable and professional brokers. Its vision is to be the most trusted brand in real estate. Its mission is to unite the most accomplished real estate brokers under a single brand, and to make it obvious to the consumer that BrokerInTrust broker members will deliver greater value and client experience than any other real estate organization in the world. Its beliefs are that through its innovative technology suite, and by integrating the most committed, top performing brokers into a single network, bound together by a culture of collaboration, innovation and best business practices, it will deliver greater value to consumers than ever before. Brenda and Barry Zwahlen are proud to be the only brokers in our local market who have been invited to be members of the elite BrokerInTrust Network.

Leave A Comment

Follow Us