I was once told that the only thing consistent in our real estate market is change.  Think about the cycles that we have seen in the last 15 years of real estate, what do you think the next ten years will bring?  Do you think it will stay a traditional seller’s market?   How about a buyer’s market with constant double-digit appreciation year over year?  Do you think the distressed market will come back?

No matter what you think the next ten years will bring, I hope you are counting on the auction platform being involved…  Now I can already hear most of you sighing in weariness and saying, “but I don’t like auctions,” “they are cutting out the realtor,” or “they don’t pay anything.”  No matter what your experience has been I want you to look at the facts:

  • Xome has sold almost 100,000 homes through their online auction platform
  • Google has partnered with Auction.com and invested $50M towards their auction platform
  • Homesearch.com Hubzu? is now licensed in all 50 states and has access to local IDX feeds
  • Studies have shown that auctions bring an average of 13 more offers than retail marketing and an average of $33,000 more

Now before we all start crying “the sky is falling.”  I want you to take a deep breath and know that all of these companies need and want to work with local professionals such as yourself!  In no way do these companies want to eliminate the realtor, they actually want to work with the realtor on a more consistent basis. 

Where do more than 90% of home searches begin… ONLINE!  Think about the millennial’s (our next largest wave of home buyer’s).  Are they tech savvy or not, that was a rhetorical question…  Are millennial’s comfortable with online transactions?

There is over $5B being invested into our real estate industry each year on the technology side.  Consumers are telling us that they are okay with online transactions by the patterns of using Amazon, Uber, and Netflix.  What do these companies have in common?  They all were met with massive resistance because they didn’t do business in the traditional manner….  Disruptors thrive when consumer’s needs are not being met.  Have you seen reviews on our industry lately?

I encourage you to evaluate the situation in full before you make any snap judgments or stick your head in the sand like an ostrich and hope it goes away.  Auctions or “Online Marketplaces,” are not going away and I want you to be able to leverage them and have a value-add for all of your clients in the near future. 

In the past auctions have been reserved for distressed properties and exclusive luxury portfolios.  You have already seen more than 90,000 homes sold on Xome’s Offer Marketplace, and they are concentrating more on helping traditional home sellers!  Now imagine if you were one of the first to capitalize on this and specialize in this arena.  Imagine if you would have jumped on Google, Amazon, Uber, Facebook when they launched… would your life be any different?

Companies like Xome have started helping agents across the country to not just sell more homes online, but also assist with the lead generation.  Xome is producing over 2,000 pre-qualified listing appointments per month and another 1,500 pre-qualified buyers per month.  They deliver those leads to agents who are familiar with their platform and can exceed expectations for their clients.  They are also teaching agents to produce more listing opportunities themselves through coaching and training.  Hubzu has over 105 traditional listings on their site currently.  What about Zillow?  Have you seen their “Make Me Move,” platform?  It resembles most online auction platforms to collect the highest offer for the home seller.

What if the next listing presentation you walked into, you were able to say, “Dear Mr. and Mrs. Seller, if I could get you 13 more offers than my competition, over $30,000 more in value, and it wouldn’t cost you anything… Would that interest you?”  You bet it would!

The process is much too new to change your entire business plan to accommodate, but I do want you to take notice to the changes occurring in our profession so you can capitalize on the change in the near future.  I hope this has opened your eyes to some possibilities on the near horizon.  I also hope you will use it to ensure you have a competitive advantage in this ever-changing marketplace.