Will Brokerages Exists 10 Year From Now?
Brian Davila Show - Real Estate Investing, Building Wealth, Faith Based
Wealthy Investor - Real Estate Investing, Real estate, Build Wealth, Faith Based
2.5 • 884 Ratings
🗓️ 23 November 2023
⏱️ 8 minutes
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| 0:00.0 | I don't see how brokerage is will exist in like 10 years because I don't understand like why would anyone go to a brokerage? |
| 0:10.4 | Yeah, so and here's here's kind of my thought on that is that I think |
| 0:16.5 | purely from an economic perspective. So what I've watched over the last five |
| 0:21.5 | ten years specifically over the last five is specifically over the last five, |
| 0:24.0 | is that the cost of sale has risen dramatically |
| 0:27.0 | for agents. |
| 0:28.0 | Cost of sale, |
| 0:29.0 | meaning like the cost to acquire clients |
| 0:31.0 | because now you need, |
| 0:32.0 | you didn't need to, you didn you need CRMs yeah you didn't need Google ads and you |
| 0:35.8 | didn't need you weren't professional photos you weren't paying 33% referral fees to Zillow |
| 0:40.4 | or Redfin yeah or all of these companies. |
| 0:42.5 | So the cost of sale has gone up dramatically, |
| 0:44.8 | which means the nets being compressed. |
| 0:46.3 | Oh, yeah. |
| 0:47.3 | And you have the sharp-elbowed, very shrewd, unlimited funded tech companies pushing into the space. |
| 0:55.0 | Yeah. And they're taking, imagine you doing business and they come to the table and they're like, hey, we want 30 to 40% of all the money. |
| 1:01.0 | Deal with it. |
| 1:02.9 | That's what they're doing. |
| 1:03.6 | Yeah. |
| 1:04.6 | In conjunction with, you know, there's just lawsuit |
| 1:07.1 | with commissions at the moment. |
... |
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