Trends 2004/5

by Stefan Swanepoel

In October 2003 the Editor of National Relocation & Real Estate Magazine sat down with Stefan Swanepoel to discus the trends for the next or two. The interview was published in the December issue of the magazine.

RIS: During the past year the real estate industry experienced an economically profitable year, and structurally an interesting year. Can we expect any further changes during in the next few years.

Swanepoel: Unquestionably. The industry continues to charter a whole new course â€" one that can no longer be turned back and is rapidly laying  the foundation for a significantly different playing field for the future.  It is a course that will, as the new trends of the last few years mature through their life cycle, fundamentally change the way that real estate brokerage will be conducted.

RIS: So what are the top trends our readers should focus on for 2004 and 2005?

The trends fall in three stages.

The first category includes those trends that are still Maturing. This would include Data Integration, Telecommunications, Unified Messaging etc. For example, the technology that was introduced during the 1996 â€" 2000 Internet explosion may have lost its high profile media coverage, but over time it has  adapted and now new third or fourth generation technology systems are providing real solutions to many traditional problems.

The second stage includes those trends that are Exploding.  Mergers & Acquisitions and Corporate Involvement are two trends  in this life cycle stage that are currently enjoying a high media profile. Another  trend includes the emergence of numerous  new business models. Although there is frequently negative talk surrounding the viability of a new business model, one cannot but be in awe of the abundance of new and creative concepts.

The third category involves those trends that are Emerging.  These are trends that are at the very early stage of development, such as the changes in customer acquisition and in agent education. For example, with overall change comes the need to maintain a valid and up-to-date  knowledge base. As a result, education itself needs to change to remain relevant. Over the next few years expect to see many new courses and an increasing delivery of training via the Internet.

RIS: So what should brokers, managers and agents focus on for 2004?

Swanepoel: Their focus must be to stay on top of change. Foremost, that means being in control of the real estate transaction and thus in control of the information and the process. Secondly, make sure that everyone in the office, on the team or those who make up the support team are all on the same page. Everyone should understand the Business Plan, know where they fit into it and how they can make it happen. Traditional roles are changing, and that's OK. However, remember that change creates both stress and opportunity. It's how you manage and balance these two that will determine how successful you are going to be.

RIS: The last two years Banks have been a major story. Has the NAR permanently stopped their involvement in the real estate industry?

Swanepoel: NAR has put up a commendable and very effective campaign against Bank involvement and there is no question that it has been effective in halting the Banks entry.   However, I would venture to say that Bank involvement has only been delayed and that we will see Banks more closely involved in the real estate brokerage industry within the next couple of years. Meanwhile, it would be wise not to take your eyes off other potential players from other industries such as Title Insurance and Consumer Retail.

RIS: NRT had a gangbuster year and has acquired more real estate companies than anyone else, ever. Do you think this will continue over the next two years?

Swanepoel: By no means do I think that the NRT has completed all the acquisitions they are planning, yet some of their recent restructuring and actions seem to indicate that their buying spree will slow down in 2004 and 2005. However, that doesn't mean that the M&A business will end. I anticipate that at least  two additional entities will push to the foreground and acquire large brokerages.  Look ahead to  a new major national player or expanding an existing large player.

RIS: Every year you  are involved with a national acquisition. This year it was iSucceed. Why? What drew you to that company?

Swanepoel: There are few better ways to learn in life than to learn from those that have walked the path before you and succeeded. Success unquestionably breads success and  that is the fundamental premise of iSucceed, Inc. that I was drawn to. The company has agreements with 170 top producing estate agents offering their proven money-making systems and strategies such as: insider secrets, presentations, pre-list packages, ads, scripts and dialogues.  The first time I experienced this content rich knowledge-based library, being delivered via the Internet, I knew that I wanted to buy this company and make this service available to all agents.

RIS: What do you expect to be the single hottest trend in 2004?

Swanepoel: Tough question. There are many trends that I think will be strong, but if I had to pick one, I would have to say franchising. This red hot trend of the mid-1970's is back with vengeance and  new business model companies such as EXIT, Keller Williams and Avalar as well as established regional brands such as Weichert Realtors and Long & Foster are using this concept to expand their market share.

RIS: In closing, you are well known for the very popular “Real Estate Confronts" books and whitepapers. What and when is the next one?

Swanepoel: There are two “Real Estate Confronts" projects currently in development.

The first is a whitepaper, scheduled for release in early 2004. It will address the critically important subject of Customer Acquisition and Retention. The whitepaper explores how this age-old function is changing as a result of technology and how new and creative business tools being made available are connecting with potential homebuyers and sellers much earlier in the transaction.  It will be available for a free download at www.RealSure.com on January 15th.

Second, a book entitled “Real Estate confronts the Future" will discuss the 15 most important trends in the real estate industry. Co-authored by Tom Dooley the book will also include contributions by 20 industry leaders, CEO's and President's. The book is being published by Thomson South-Western and will be available March 1^st.

ABOUT THE AUTHOR

Stefan Swanepoel is a sought after keynote speaker and is widely recognized as the leading industry visionary on trends and change. He has penned eight books and whitepapers including the best selling “Real Estate confronts" series. Stefan is Chairman & CEO of RealtyU, the largest network of real estate schools in the nation (www.RealtyU.com), and also serves as strategic advisor to numerous companies, both locally and abroad. More information visit www.RealSure.com