Section of the report
Dangers Impacting Brokers
Real estate brokers face significant challenges from increased regulatory compliance, technological advancements, and new business models.
The Dangers
Listed in the order they appear in the report. Each carries a danger index scored out of 100.
- B1
Regulatory Tsunami Hits
Regulatory creep and large financial penalties increase compliance costs.
100Critical - B2
Paper Brokerages Cause Disruption
With no walls and little operating costs, Paper Brokerages proliferate and become a major force overnight.
80Severe - B3
Brokers Lose Control of Data
Consumer confidence in industry data erodes due to the multiplicity of conflicting data sources.
72Severe - B4
A Consumer Brand Crashes the Party
A well-established consumer brand is introduced into the marketplace and a new multi-billion dollar residential real estate brokerage brand is created.
64Severe - B5
New Business Models Go Mainstream
The existing compensation structure gets eclipsed as new business models gain rapid traction.
63Severe - B6
Brokers Simply Go Broke
Increasing costs and decreasing revenues squeeze brokers' profits, leading to an increasing number of brokerages going out of business.
56High - B7
Technology Becomes a Runaway Train
The pace of technological change accelerates, outstripping the ability of brokers to keep up.
48High - B8
FSBO Develops into a Do-It-Yourself Model
The For Sale By Owner (FSBO) model gains traction as technology enables homeowners to sell their homes without the assistance of a broker.
42High - B9
Sales Tax Threatens Margins
The imposition of a sales tax on real estate transactions threatens brokers' profit margins.
40Moderate - B10
Portals Leverage Lead Gen Dominance
Real estate portals dominate lead generation, squeezing brokers' margins.
36Moderate