When giants fall, what can GE teach MegaBrokers about SmartFailing?
After selling off most of its lending operations, along with $26 billion worth of real estate investments in 2015, General Electric -- the once lionized conglomerate -- has struggled. Yesterday the Dow Jones dropped GE, one of the original members of the original Industrial Average In 1896.
If Pete Flint's prediction at #ICNY18 is correct, and half of the incumbents in real estate will disappear over the next decade, what #SmartFailing lessons does GE offer to MegaBrokers and others? Can they navigate the coming #TechTsunami and disruptive, moneysaving innovations in the real estate ecosystem?
GE's Fall From Dow Jones Is The Downfall Of An American Icon
Previous NPR episodes provide context:
http://bit.ly/GESellOff2015
http://bit.ly/GEMagicGone
http://bit.ly/DowDropsGE
Numerous real estate startups have failed over the past two decades, and others are struggle today. If you're one of them, and are considering or have made success pivots, want to share you story with other #REStartUps?
What kind of support can we offer each other, regardless of size, to develop successful business models while delivering consumer savings?
Tom Wemett Fri 22 Jun 2018 1:20PM
Jack Barry, "Disclosed" Dual Agency is a legal part of the common law of agency. There are situations where one or more agents representing the buyer and seller in the same transaction makes sense. It is common in commercial deals. Attorneys sometimes do disclosed dual agency for inter-family situations or a situation which is common in MA where the attorney represents the bank AND the buyer. Yes their interests are generally aligned but not totally. Disclosed dual agency is transparent. The agents in essence are no longer agents and provide very limited fiduciary duties. Undivided loyalty, obedience to lawful instruction and full disclosure of material facts go away. What is the alternative to dual agency - deception and disloyalty known as transaction brokerage, facilitator and worst of all designated agency.
Jack Barry Fri 22 Jun 2018 3:30PM
Tom: What you outline is not really "dual agency"...because the agent stops doing the acts of an agent. He/she, at best, becomes a facilitator.. We all know that the reason , almost solely...why agents like to function as "dual agents" is the retention of the "whole fee"., not the usual half fee... Yes.?
Bill Wendel Fri 22 Jun 2018 4:36PM
Love to see comments on RE2020 but as moderator, want to make sure that threads remain on topic. With the demise of GE in mind, ask how does the controversy surrounding dual agency & designated agency relates to this thread on #SmartFailing?
Will the supreme court decision in California against designated agency and decision in British Columbia to ban dual agency result in any meaningful change?
Twenty-five years after NAR began going state to state to dismantle the common law of agency, what #SmartFailing lessons have we learned as real estate consumer advocates? What's different this time?
For the record, the flier below helped defeat legislation to legalize designated agency in Mass. However, Realtor lobbyists slipping their self-serving agenda through as a budget amendment without another round of public debate.
Glad that debate has reopened:
https://www.facebook.com/groups/RealEsateConnect/permalink/2639539296058023/
Jack Barry Fri 22 Jun 2018 5:19PM
Thanks, Bill..
My view on the demise of GE: businesses have a life cycle. Sic Transit Gloria.... (adios : Kodak, Polaroid, U.S.Steel, etc, etc.)
But the Mega-RE brokers also have that.. Redfin or some such will displace the Coldwells, etc., with some "Uber type" system."
The beat goes on. The day of the "little guy" seems to be fading.
Is Amazon a terrible thing? Depends on who owns the ox.
jack barry
"When All is Said and Done....there's more said....than done"
Jack Barry · Thu 21 Jun 2018 10:16PM
We, on this list, are not seers, but...while technology makes stuff cheaper, it also reduces the options for X down to a very few.
In the Boston of my youth in the 50s... there were all the national "soft drink bottlers" that there are today, plus an equal # of small, local bottlers. Today there are NO local bottlers, and few providers of national scale: coke, pepsi, and . ????
ColdwellBanker types will have to duel with Redfin types, which are like Uber, and like Amazon....Consolidation, but also "less cost per unit"
The standard . "5% commission" used to be 6 and 7 per cent . It wil be down to 2.5% total in a few years. I work on One Percent, plus whatever the seller wants to pay the buyer's agent.
In SF, the average sale is over One Million...Can I get by on "one sale per month" ($10,000+)... Yes. For consumers, it is a good thing.
Take Uber drivers... different story. I think it used to be better to be a traditional cabbie, pre-Uber.
It's complicated.
Some issues are not complicated... "Dual Agency" remains legal, but, in essence, criminal.... End of Story.
jack barry
"When All is Said and Done....there's more said....than done"