Roundtable discussions > FLASHBACK: 1998 vs 2008: What obstacles need to be overcome to deliver $30 billion in consumer savings annually?
Comment posted in response to discussion thread on industry website: Change Is A Reality - Learn To Deal With It http://tinyurl.com/6p4pnx
Home buyers and sellers, as well as industry professionals, are invited to respond here:
Thank you, Stefan. Your book, Real Estate confronts Reality, was prophetic in many respects. However, from the consumer's perspective, the money-saving potential of those trends -- an estimated $30 billion annually -- has yet to be realized. Here's an excerpt from a Special report by McKinsey & Company published by Inman News, January 23, 1998:
Reinvent the closing--2nd of two parts $30 billion in economic value could be created
Given the gap between current practices in real estate transactions and consumer needs, we believe this industry is ripe for a restructuring that could create better than $30 billion a year in economic value. This value is likely to be shared between industry participants and consumers, who should benefit from lower prices.
http://tinyurl.com/bml8t
What obstacles need to be overcome to deliver more of those savings? For example, is the industry ready to divorce the traditional two-sided commission, or establish a database of buyers that is just as easy for the public to search as the multiple listing service? Will innovators within the industry bring about those changes or players / forces outside the traditional industry?
Did any members of this group attend the Strategic Planning Committee meeting at NAR in Orlando? As in the past, that was a closed meeting but insights from that committee would certainly inform this discussion. More importantly, a public discussion of those scenarios would enable vendors to develop tools more efficiently and effectively to achieve the twin goals of delivering savings for consumers and profits for businesses.
Bill Wendel The Real Estate Cafe Serving a menu of money-saving services for "do-it-yourself" homebuyers & FSBOs since 1995 617-661-4046 realestatecafe@gmail.com http://realestatecafe.squarespace.com
Comment posted in response to discussion thread on industry website:
Change Is A Reality - Learn To Deal With It
http://tinyurl.com/6p4pnx
Home buyers and sellers, as well as industry professionals, are invited to respond here:
Thank you, Stefan. Your book, Real Estate confronts Reality, was prophetic in many respects. However, from the consumer's perspective, the money-saving potential of those trends -- an estimated $30 billion annually -- has yet to be realized. Here's an excerpt from a Special report by McKinsey & Company published by Inman News, January 23, 1998:
Reinvent the closing--2nd of two parts
$30 billion in economic value could be created
Given the gap between current practices in real estate transactions and consumer needs, we believe this industry is ripe for a restructuring that could create better than $30 billion a year in economic value. This value is likely to be shared between industry participants and consumers, who should benefit from lower prices.
http://tinyurl.com/bml8t
What obstacles need to be overcome to deliver more of those savings? For example, is the industry ready to divorce the traditional two-sided commission, or establish a database of buyers that is just as easy for the public to search as the multiple listing service? Will innovators within the industry bring about those changes or players / forces outside the traditional industry?
Did any members of this group attend the Strategic Planning Committee meeting at NAR in Orlando? As in the past, that was a closed meeting but insights from that committee would certainly inform this discussion. More importantly, a public discussion of those scenarios would enable vendors to develop tools more efficiently and effectively to achieve the twin goals of delivering savings for consumers and profits for businesses.
Bill Wendel
The Real Estate Cafe
Serving a menu of money-saving services for "do-it-yourself" homebuyers & FSBOs since 1995
617-661-4046
realestatecafe@gmail.com
http://realestatecafe.squarespace.com