Industry Disruption

Terms like PropTech, have been coined to represent new technology & ideas. Is disruption going to happen or has it begun already?

Topic – Real Estate and Prop Tech

Mentor – Brad Inman

  • Disruption is like the ageing process
  • Companies are becoming intermediaries
  • Blockchain will change the game

Marketing Monday – Greg McDaniel talks about how much has changed since he started in real estate under a decade ago in how we market and prospect.

Transcript:

Kevin:   We’re very excited about the fact that in only a matter of weeks we’re going to be in New York at the Inman Connect conference. We’ve got a whole team of people that we’re taking over, we’ll be live streaming as well. But more about that later. I just want to introduce our guest for this week. Our featured guest is none other than Brad Inman. Brad, thank you very much for your time.

Brad:   Oh, it’s a pleasure. I’m so excited to see you folks in the great New York City. I’m really, really excited about you coming over.

Kevin:   So are we, we’re very excited. We’re looking forward to it too. We’re bringing a team of people over, so it’ll be wonderful. Can I just ask you firstly about industry disruption. Terms like Prop tech have been coined to represent new technology and ideas. You’ve got a very close link with the industry. Is disruption going to happen or is it already begun?

Brad:   Yeah, I think it’s already happening. It’s like the ageing process, am I going to get old someday? No, you’re getting old every day, right? Similarly here, not just conferences and ideas and discussions, but the reality is the world is changing. Great example is ibuying, this fast and furious, on-demand home selling in the U.S. It’s just growing like a weed in every market throughout the country. You have new tech enabled companies like Compass that just announced that it looks like they’re close to having 20% market share, 20 top markets in the U.S. You’ve got companies, third in the nation in size in just a few years. You’ve got companies like Redfin here in the U.S., they’re gobbling up share and they’re like sixth in the country or fourth in the country. Then you have artificial intelligence changing how we generate leads and you have just a whole bunch of new things that are changing the game really dramatically.

Kevin:   It’s actually bringing the world a lot closer too. There was a time when the methods of sale were so different in different parts of world, but now, with communication and with conferences like yours that’s going to happen in New York later this month, it’s bringing the world much closer together and technology is allowing us to work in a lot more unified way.

Brad:   Oh, totally. For example, take on-demand. You guys have been doing on-demand with auctions for how many decades. It’s kind of a rough and tumble version of on-demand, but it’s very similar. You add technology to that and people can see a house, buy a house overnight, or sell a house overnight, and that’s what’s beginning to happen. There’s also another phenomenon and that is companies are becoming intermediaries. Open doors buying and selling property and they’re sitting in the middle, kind of like what happened with software eating the world of transportation with things like Uber. A lot of these things, you guys got a lot of experience, and like you said, the world is smaller so we can learn from you and you can learn from us.

Kevin:   I guess there is a company, an Australian company which you featured recently in an article, I think you would have known it as Propify, now known as Coicio, and that uses blockchain to allow agents to bring all their listings together and market them in a different fashion. This is a good demonstration of what technology is doing.

Brad:   Exactly, and blockchain is going to really change the game, not just in the marketing side and listings, but also on the back end, that cumbersome closing process with title and escrow and mortgage which is this silly, arcane, difficult process for the average consumer. All that’s going to go away when we have these more efficient, back end, multiple databases all connected. The other thing is safety. We’re seeing a lot of innovation people are seeing with biometrics, clearing people through homeland security to get on an aeroplane. Well, we’re going to start seeing that with virtual showings. Here we have open houses Sunday from 12:00 to 4:00 and that’s so anti-consumer, and now we’re going to see all this technology that enables people just to show up at the door with their finger prints or their eyes, enter a house and get on their way to see it. It’s going to create a bigger market for real estate, the more houses people see, the more houses they buy.

Kevin:   Tomorrow with Brad we talk about Purplebricks. And given that discount players like Purplebricks effectively cut out the listing agent will the role of the buyer’s agent become more pronounced. And how are established brokers in the U.S. coping with the likes of Purplebricks? He joins us tomorrow to have that discussion.

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