Disruptive Factors in Real Estate--& Elsewhere

We're in the process of buying a house (and selling our old one). Throughout it all, I could not help but recognize that the whole game is changing. Or perhaps it has already changed. In my estimation, during the period when we were looking for our new home, the best properties were not the homes listed by real estate agencies. The most desirable homes were "For Sale By Owner."

There is another channel in our market called "Assist 2 Sell." It seems to be gaining popularity and momentum. Maybe you've seen it in your city or marketplace. The Assist 2 Sell package is a fixed-price bundle of services. You pay something like $2,950 and the Assist 2 Sell team helps you promote your home--web, signs, etc. Their team will also hold an open house and conduct showings for you. If you need more services, there's another price for the upgrade bundle, which you can elect to purchase. While we did not go this route to list our house, it does seem to be appealing to an increasing number of sellers here in the Charleston, West Virgina market.

Whether it's the power of the Internet and e-mail, or some combination of economic factors, the old guard seems to be losing market share to these new, disruptive ventures like Assist 2 Sell. Moreover, it appears that the For Sale By Owner (FSBO)method is cutting into the listing market in a major way, right now. Maybe we've all been influenced by E-Bay. Perphaps we believe we can sell anything by ourselves?

Let's see ... limited service packages and self-service are gaining market share in real estate. Hmmm. That is not grossly different from what's going on in some of the Internet services markets, too. Self publishing. Point and click Website design. A plug-and-chug company logo with the intellectual property services bundled. Don't forget about the travel market. How many of us go and sit down in front of a travel agent nowadays? What about Saturn ... and some of the more progressive car companies? Low-pressure sales reps in Dockers and golf shirts, merely demonstrating the product, not pushing it. They don't do much more than make a copy of the driver's license and toss the keys to the prospective buyer.

All in all, I think that the fixed-price, limited-service offering is an intriguing combination. The times they are "a-changing." Maybe its time for the role of the real estate agency and Realtors to change, too. About a year ago we told a top real-estate client that they should create a spin-off company, not unlike Assist 2 Sell, and compete with themselves to maintain market share. At the time it seemed like a forward-reaching strategy. Today it seems to make all of the sense in the world.

Kudos to the disruptors in the marketplace. They truly are marketing geniuses!