2015 D.A.N.G.E.R. Report

The DANGER Report offers the residential Real Estate Industry with both a comprehensive and objective analysis of the most noteworthy threats, risks, and black swans that could possibly impact the industry. The 164-page report is based on 74 one-on-one interviews of industry CEOs and leaders conducted by Stefan Swanepoel, as well as data from a comprehensive national survey with input from 7,899 REALTORS®. It is designed to be a proactive tool for leaders and organizations, and help them create solutions adaptable to the industry's uncertainties.  

The Report includes five major sections of the industry: Agents, Brokers, National Association of REALTORS®, State/Local Associations of REALTORS®, and MLS organizations.  

Top 3 Dangers Impacting Agents

1. Masses of Marginal Agents Destroy Reputation: The real estate industry is burdened with a large number of part-time, untrained, unethical, and/or incompetent agents. This knowledge gap threatens the credibility of the industry.

2. Commissions Spiral Downward: Numerous forces exert substantial downward pressure on real estate commissions.

3. Agent Teams Threaten the Survival of Brokerages: Teams cannibalize brokerage companies by siphoning off their profits, leaving them exposed to all the risk.

Top 3 Dangers Impacting Brokers

1. Regulatory Tsunami Hits: Regulatory creep and large financial penalties increase compliance costs.

2. Paper Brokerages Cause Disruption: With no walls and little operating costs, Paper Brokerages proliferate and become a major force overnight.

3. Brokers Lose Control of Data: Consumer confidence in industry data erodes due to the multiplicity of conflicting data sources.

Top 3 Dangers Impacting NAR

1. Decision-Making Structure Becomes a Hindrance: NAR's complex governance structure encumbers its ability to adopt the strategies, tactics, and policies that are appropriate for the future.

2. The Three-Tier Structure Liability: The unique three-tier REALTOR® Association structure emerges as the trigger of major crippling channel conflicts between national, state, and local REALTOR® Associations.

3. Out Positioned as Industry Spokesperson: The continued proliferation of voices and huge ad budgets challenge NAR's position as The Voice of Real Estate.

Top 3 Dangers Impacting Associations

1. Leaders Not In Unison With Fast-Paced World: The inability to recruit, train, and engage the skills required to lead associations through transition.

2. Too Many Uninformed Decisions Are Taken: Misguided decisions are made by leaders who don't clearly understand their obligations and responsibilities.

3. Broad Resistance to Consolidation: Hundreds of small associations fear loss of identity, custom services, and a voice.

Top 3 Dangers Impacting MLS

1. Entry by a New Player: The current warlike environment in real estate becomes attractive to a large non-industry company that sees opportunity.

2. Unclear End Result: The MLS movement hasn't thought through what a post REALTOR® - owned MLS might look like or how it would operate.

3. Control of a National MLS: A national MLS has been talked about for decades, but never before has the likelihood of it actually becoming a reality been so high. The danger arises out of who manages to end up with control and how they will use it to further their business and fiscal agenda.

Read the rest of the dangers impacting each of these major sections of the industry here: Agents, Brokers, National Association of REALTORS®, State/Local Associations of REALTORS®, and MLS organizations.  

Download the complete DANGER Report here.

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