I have talked about the changes in mortgage lending and traditional real estate sales for a long time. The past five years I have tried to make those people engaged in these practices aware of how the entire industry has been moving much more toward a transactional basis from more of a relational basis. In fact, the entire “Crossroads” event series was built around that very simple comparison.
With the huge increase in internet buying and selling of real estate, internet based lenders, huge “teams” of mortgage and real estate professionals buying and pounding leads for business, the move away from more “traditional business” is almost alarming! It has been my assertion that companies like Zillow®, Redfin®, Open Door®, and Quicken® on the mortgage side, have continued to move the needle faster and faster. Zillow® will be a licensed real estate broker in all 50 states by the end of 2020, and Quicken® is already the largest mortgage lender! I have projected that more than 75% of all mortgage and real estate license holders by 2025 WON’T even be in charge of their own relationships at all!
I say this because the “PIE” that is the total amount of available business opportunities will be shifting. A greater percentage of business will be done by nontraditional license holders and those competing for relational based business will compete over a much smaller total “PIE”.
Now this isn’t a bad thing for you relationship focused people. In fact, it will be BETTER for your business! Why? Because there will be significantly LESS competition in that market! The reason you ask? Because most people would rather make less money on each deal if they don’t have to generate the opportunity than want to make more money doing the WORK of a relationally based business that provides for a quality experience for the clients.
Plain and simple, smaller pie; far fewer people sharing that pie means more pie for those that stay and do the WORK! Do the work, and enjoy your pie!
Questions or comments: Mike@IMTcoaching.com