Where Real Estate Business Models are Headed in the Next Five Years?

Where Real Estate Business Models are Headed in the Next Five Years?

In the next five years, the real estate business models are going to change a lot. We’re seeing new trends in the industry – like automation in the Real estate industry, and businesses that don’t adapt will inevitably fall behind. In this post, we’ll take a look at some of the changes you can expect, and how you can prepare for them. So whether you’re a realtor, builder, or agent, read on to gain some valuable insight into the future of the real estate market.

1. Predictions for the future of real estate in 2022

Real Estate Business Prediction for 2022

What will the real estate industry look like in five years? Here are some expert predictions about what we could see in the near future.

The industry is moving towards subscription-based models rather than commission-based ones.

As technology continues to advance in the real estate industry, experts have noticed that it’s becoming much easier for companies to adapt and embrace the changes that we see every day. This means that it’ll probably become more common for them to shift away from commission-based Real Estate business models and towards ones that charge a recurring fee.

When you think about it, this makes sense. Most real estate agents aren’t really salespeople – so why should they be paid as such?

The real estate market isn’t very competitive when it comes to customer relationships, so there’s no need for agents to rely on one-off commissions in order to make money. Instead, they should be able to position themselves as a valuable resource and then charge recurring subscription fees that provide customers with ongoing value and information over time. This would help them to embrace changing technology, and would also give them the freedom to focus on providing more in-depth services.

2. Marketplaces will continue to gain in popularity

Become Popular in Real Estate Industry
Real estate websites like Housing.com, Lisa Home Solutions, and  Lisa Properties have already changed the game in many ways. People who are looking for homes can now do things like price analysis so they don’t waste their time touring properties that aren’t in their price range. They can also browse through listings and arrange tours using nothing more than their mobile device or laptop.

In the future, people will probably continue to rely on sites like Zillow to help them find a new home. In fact, many experts believe that marketplaces will play an even more important role in the industry as we move forward.

“Marketplaces like Housing.com and CommonFloor will become increasingly important to the real estate industry for a few reasons: they give consumers more transparency into available listings, which reduces overhead costs for agents; they provide an efficient way to reach potential buyers, and their popularity is likely to grow.” – Matt Lawson, President of the National Association of Exclusive Buyer Agents

Increased transparency means that it will be easier than ever for people to find and purchase new homes. As a result, there will probably be fewer customers who work with real estate agents in the future – but those that do will become more valuable as their needs become more complex.

3. Changes in technology that will impact the industry in the future

Technology in Real Estate Industry

The real estate industry is already embracing technology, and this trend isn’t likely to end in the near future. Rather, it’ll probably become even more popular in 2022. Automation in the Real estate industry is going to play an important role.

Real estate agents will need to embrace analytics in order to be successful.

As mentioned earlier, Automation in the Real estate industry and advanced analytics are quickly becoming an important part of the real estate industry. Consumers now demand transparency and data that allows them to make smarter decisions, and companies like Housing.com provide them with this information as a way of attracting new customers.

As the use of analytics continues to rise, agents will probably be forced once again to adapt their business practices in order to stay viable in this changing market.

“As the real estate industry becomes more competitive, agents will need to offer more customized services that can capture repeat business. This is where analytics software offers opportunities for success.” – Springboard Research

Creating detailed buyer profiles and tracking consumer data will be crucial in order to determine which services are most popular with which demographics of customers. This would allow companies to focus their energies on offering a select group of potential buyers the kinds of services they want, rather than mass marketing every possible service to everyone in an attempt to attract new customers.

At the same time, this kind of targeted marketing strategy could help agents stay productive with fewer resources.

The impact of smart devices will continue to be felt throughout the industry.

As technology continues to become more sophisticated, the idea of allowing people to use their home computers or mobile devices while on the go will become even more appealing. This could entice customers who are already accustomed to making buying decisions with these kinds of tools in mind.

“The real estate industry is becoming increasingly dependent on software and apps that permit buyers and sellers to manage their home search process from anywhere. As a result, we expect the percentage of mobile users in the real estate sector to steadily increase over time.” – eMarketer

As this trend grows, so too will the ability of companies to allow customers access to useful information wherever they go. Buyers will be able to schedule tours almost anywhere using only their phone, for example – and agents will be able to offer information about available listings wherever they happen to be.

4. The rise of short-term rentals and their impact on traditional landlords

The rise of short-term rentals and their impact on traditional landlords

In recent years, companies like Airbnb have begun to offer short-term renters a way to find quality housing in cities across the United States. This has been an attractive alternative for many people, and it’s likely that this trend will continue in 2022 – and beyond. 

“Real estate investors are just starting to realize that they can use their under-utilized properties as the basis of rental businesses. Not only do these rentals produce steady, reliable income, but many landlords find them easier to manage than long-term tenants.” – Forbes

This new trend has already had an impact on traditional real estate landlords, who may find it difficult to compete with companies that offer potential renters a wider range of options. Of course, this isn’t to suggest that renting from a traditional landlord is no longer an attractive option – after all, they may be more likely to attract long-term tenants for properties that would otherwise sit vacant most of the year.

However, these new short-term rental companies will almost certainly continue to grow in popularity as more and more people discover the benefits of their services.

5. How the current economy is affecting the real estate business models

economy is affecting the real estate business models

The real estate industry has been a steady source of income for most people who choose to work in the sector. That being said, the recent economic turmoil has made it difficult for many agents and landlords alike.

“As home prices have increased at a slower rate than incomes, many buyers are unable to compete in today’s market. This is creating a ripple effect throughout the industry. In turn, buyers will need to adjust their expectations and be willing to settle for less.” – Major Mortgage News

Of course, the real estate market has been recovering over the past few years, but many consumers have yet to feel significant financial relief. This means that 2022 may present even more challenges for companies that are trying to sell homes for highly inflated prices, or that depend on tenants that are willing to pay extremely high rental fees.

As the housing market continues to see new highs, however, it seems likely that these companies will be able to regain some of their former momentum.

6. The changing demographics of home buyers and sellers

demographics of home buyers and sellers

According to a survey, the majority of people who sell their homes today are 55 years of age or older. That being said, there is a trend towards people selling their properties earlier than they once did – creating an opportunity for companies that cater specifically to first-time sellers.

“The biggest growth potential…will be in markets where prospective buyers are getting a later start on homeownership. This group has become a significant force in the housing market and should continue to be one for years to come.” – Inman

In 2022, this trend will likely become even more pronounced. As younger buyers begin to feel more financially secure, they may begin looking into purchasing their own homes in larger numbers. Of course, this will also depend on the strength of the job market – but if unemployment rates continue to decrease, it seems likely that more first-time homebuyers will enter the marketplace over the next year.


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