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Sometimes Change Need Not Be Subtle

Real Estate Radio USA | Real Estate Changes

The old way is out and the new way is in. The manner in which you are presently engaged will cease to exist. You must change. You will have no choice!

The date of the metamorphosis has been announced. February 17, 2009 is the day of reckoning. You will either change or be left in the dark. Period!

“By law, all full-power television stations nationwide must switch from the old method of transmitting TV signals known as analog to digital television (DTV) on February 17, 2009. While the benefits of DTV are remarkable, millions of households risk losing television reception unless they take the easy steps to receive a digital signal.”

The cable industry and entertainment industry are taking the necessary, almost beyond necessary, steps to ensure that their customer base knows that in about a year, the way they currently are doing things will change forever. You either change or you will not be able to watch television.

Imagine that, an industry not debating change but mandating it. Imagine that, an industry that has decided that the manner in which they have done something is obsolete. Imagine that, an industry that was willing to embrace change because it actually IMPROVES the consumer’s experience.

Who would have thought it possible that an industry could do this? Who would have thought that an industry would want to do this?

Why make such a sweeping change? Well research determined that DTV is a “more flexible and efficient technology than the current analog system”.

Since digital television is a more efficient use of technology than analog television, the “turning-off” of the old way of broadcasting televised programming it will also free up parts of the airwaves so that incentive for even further innovation is provided to ambitious entrepreneurs.

So not only is there going to be a change to improve the consumers experience, the change is being made to facilitate the progress of future enhancement by others.

Imagine that, an industry that not only embraces change but does so in order for others in the business to succeed as well..

What if the real estate industry did this? What if the real estate industry announced to all of its agents and to the consumer as well that the industry as you know it today, was turning off and those who did not get with the new program would cease to exist?

I know, it’s totally wishful thinking but if Lawrence Yun looked at the numbers, perhaps he could recommend such a change to the leaders of the National Association of Realtors. He certainly would have the data to back up a wholesale change in the manner in which the real estate business is run.

We all have seen the studies, although some disregard them, they are the truth. The public does not hold real estate agents in any regard and finds that the real estate agent as an occupation is pretty much a dodo bird on life support.

Makes you wonder how so many studies, by so many prestigious universities and research firms are disregarded yet the highly biased NAR data is held in such reverie. “People love us…we have the data from the NAR” …if the NAR data is even remotely credible how come it is basically only their data that says that? Any other studies mentioning the exaltation of Realtors? I haven’t seen one and I look hard to find anything else that supports the NAR position as to how highly thought of Realtors are.

So yes, I think Yun would have great support documentation to proffer a proposal to shut down the current way business is being transacted in the real estate sector. That is not to say that anything even needs fixing. This is not by any means a declaration of the current business model being broken. While that may be a personal opinion, it is certainly not a blanket statement or cause for Yun’s fantastical announcement.

Much to the contrary. Most televisions, even the older ones, the “Old School” units with rabbit ear antennae, still work. They still allow you to see your favorite programs. Nobody claimed that the current broadcast system does not work. What is claimed, and supported by a multitude of research, is that the current system is obsolete and wholly inefficient. Additionally, most consumers want DTV.

Who is the television consumer these broadcasters are seeking to appease and serve by providing a much more brilliant and enhanced product to? Demographics, which is the measurement of who your target audience or consumer is, remains critical to the broadcast industry. Primary in demographic analysis is the analyzation of age and gender. These are the two principal demographic characteristics that TV audience research uses.

While it is beginning to skew younger, the 18-49 year old demo has long been the target for advertisers and accordingly, producers provide most of their programming to attract and satiate this segment of the population. The drill down goes further in cable with various niche programming but for the most part, advertisers are looking for the younger skewing 18-49 year old demo.

What is the target demo for real estate? Well according to the 2007 National Association of Realtors® Profile of Home Buyers and Sellers it appears that the following provides a snapshot of a Realtor’s target audience:

* 84 percent use the Internet to begin their home buying search
* 92 percent of those 18-29 use the Internet and 85 percent of those 30-49 use the Internet and then the numbers begin to drop off considerably in the remaining age groups
* The median age of first-time home buyers was 31
* The typical repeat buyer is 46 years old
* The median age of a home seller is 45
* First-time home buyers accounted for 45 percent of homes purchased in 2007
* Twenty-seven percent of home buyers reported using social networking Web sites, such as, MySpace, Facebook, LinkedIn
* Among home buyers aged 18 to 24, 45 percent reported using social networking sites.

So it can be reasonably determined by a cursory review of the NAR data that the target demo in real estate mirrors that of television.

That fact being irrefutable, why can’t the real estate industry provide a more efficient and appealing business model to its target consumer and while doing so provide an incentive for those ambitious agents to be continually innovative in their entrepreneurial endeavors as real estate agents?

If I was Dick Gaylord, as the President of the NAR, I would take the necessary steps to inform my rank and file agents, along with stating to the consumer, that business as it is known today in the real estate industry, while not broken and still working, is turning off as of February 17, 2009 and all those not prepared for the change need to upgrade or they will be left in the dark. Sometimes change needs not be subtle.

If the broadcast industry can make this kind of mandate effective, why can’t the real estate industry do the same?

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