As an industry, real estate is notorious for its reluctance to change. The industry today operates much the same way it has for a century, even as the job itself and the market have shifted.
But nothing stays the same forever, and the real estate industry has become ripe for disruption. It’s natural for people to hesitate when confronted with a transformative shift in their industry. It’s their profession and their livelihood, and big changes can be intimidating. People get accustomed to doing things a certain way.
That doesn’t mean change is a bad thing. Resisting it can also be bad for business, especially when a disruptor comes along that transforms the industry for good.
As a real estate agent, the best way you can prepare is to get ahead of the competition and have a clear-eyed view of where the industry is going. Agents across Canada and the United States are soon going to become familiar with Nobul, a digital marketplace that’s already disrupting the real estate industry.
What Is Nobul?
Nobul is the world’s first true digital open marketplace. It’s a consumer-centric platform that connects home buyers and sellers with real estate agents, where agents compete for listings or clients in the market to buy.
In an interview with BNN Bloomberg, Nobul Founder and CEO Regan McGee shared that “Whether you’re looking to buy or sell real estate, you put in basic pieces of information. Agents then compete for your listing or your buy. They’ll give you their proposal where it outlines exactly what they’re including and what they’re excluding, what their track record is, and reviews from people that have actually used them.”
Agents propose a fee and services to potential clients who have the opportunity to choose with more information at their disposal than the traditional real estate industry ever gave them. Nobul puts more control in the consumer’s hands.
A New Generation of Home Buyers Comes with New Expectations
The platform is targeting Millennial home buyers and sellers who expect information, transparency, and answers, online and at their fingertips. Buying a home is hard enough for young people and first-time buyers. Housing affordability has become a major issue across North America, especially in the big, vibrant cities that attracted them earlier in their careers, though now the problem is also spreading to traditionally more affordable cities and towns. Millennial budgets are stretched thin, and the competition for listings in many areas is at an all-time high.
In the face of this kind of pressure, Millennials are looking for information and transparency, and they want it tech-enabled. They want to know what services they’re getting and at what price.
How Nobul Is Changing Real Estate Agent Fees
As Nobul disrupts the way consumers find and work with real estate agents, it’s also changing the culture around commissions. Many first-time homebuyers aren’t even aware that they are the ones paying the commission for both buying and selling agents. The way the commission system works, some are under the impression that the commissions are a cost to the seller, even though that commission is built into the price of the home.
The standard commission in real estate has been 5-6% for over a century, but the job of an agent has fundamentally changed. While there are consumers out there who are willing to pay top price for an agent who meets their demanding expectations, many agents are adjusting their commission fees for more straightforward jobs.
Platforms like Nobul are making agents more competitive when it comes to fees, but that doesn’t have to mean a loss for agents. The platform has also integrated blockchain technology for contract management, streamlining one of the more complicated bottlenecks in real estate transactions.
Disruption doesn’t have to be a zero-sum game. Agents who embrace a more streamlined process supported by technological tools can improve their client flow. The industry has already witnessed the difference tech features like virtual tours can make for their clients. As Nobul adds the power of AI-supported bots and blockchain contract management, agents can leverage more powerful tools to make their jobs easier.
Where Does Nobul Operate?
Nobul is already operating across Canada, and in states including Florida, California, Georgia, Texas, and Ohio, with plans to expand across the United States. The platform is uniquely equipped to scale because it is registered as a brokerage wherever it operates. Increasingly, major brokerages are partnering with the platform to stay ahead of the curve and meet changing consumer expectations.
While the real estate industry has long been resistant to change, new technology is making it inevitable. Smart agents will adapt and learn how to leverage technology tools to their benefit.
