The real estate industry, ready for disruption

18

October

2016

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The real estate industry ready for disruption?

 

Everybody knows the current procedure for selling or buying a house. Let’s say you would like to sell your house. You’d go to a realtor and list your house. When there is someone interested in buying your house, he makes a bid to the realtor. The realtor notifies you about the bid. You have the choice to accept or to decline. Imagine you accept the bid and your house is sold. How does the real estate agent get paid? The real estate agent responsible for helping making the sale receives a commission of approximately 3% of the home’s price. This might not sound too much but this can actually be a lot of money if the agent helps selling an expensive house.

The real estate industry is a very traditional industry where technology does not really take an important role. The only technological aspect in the real estate industry is websites where all the properties of a real estate agency are listed.

I think that the real estate industry is ready for disruption. In my opinion people who want to buy or sell their house do not longer need a real estate agency as intermediary. Why aren’t houses being sold on online market places or panels? Cars are being sold on online market places so why not houses?

Imagine there is an online market place for selling and buying houses without an intermediating real estate agency. A seller creates an advertisement providing a detailed description of the house with information such as the number or rooms, number of square feet and number of bathrooms. In addition, the seller places photographs of the house in the advertisement. If people are interested in buying, they reach out to the seller to set a date for the inspection.

It is as easy as that and we no longer need real estate agents receiving ludicrous fees.

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The new offices

10

October

2016

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Collaboration tools are designed for people to communicate and collaborate with others that are not at the exact same location as you are. Whether this is a different floor in a building or a different continent.
This has been happening for thousands of years:
– Drums were used as a communication tool in Africa
– Chinese used smoke signals along the Great Wall of China
– Carrier pigeons with notes attached to them that flew through the sky
– A Greek messenger who run from Marathon to Athena for 28 miles to deliver a message that was just one word.

All these kinds of communication had two things in common:
– It takes forever to get the message across
– Creating the message wasn’t very easy nor convenient

However, with all the current collaboration tools out there, I find it fascinating that the majority of employees nowadays still go to the office at 8 in the morning and go home at 6 in the evening. Why is this still the common accepted standard in these times where it is possible to work from any place in the world with the help of technology.

So what factor do you think motivates people most to go into the office?
1. Because it is expected from them → 47%
2. To have face-to-face interactions → 23%

The link between virtual offices and Cisco.
Employees have meetings all the time. They have team meetings or meetings with customers. People have to be able to communicate in order to work together. However, that does not mean that people have to be in the same office building.

Working from home or any other remote area has two types of benefits.
– Employee benefits
– Employer benefits

Employee benefits:
– Improves employee satisfaction
– Employees can work from any place they want
– Increases productivity/efficiency

Employer benefits:
– Businesses are not restricted anymore to hiring employees that live locally. They can hire people spread across the world.
– Cost saving: No more offices. An office building is a huge expense for a company. This office building we are sitting in right now was sold last year by ING to an American real estate company → 88 million euros.
American Express reported annual savings of 10-15 million US dollars for offering remote working options for their employees.

So in my opinion, in the future physical offices will slowly disappear. Big companies might have some for the meetings that absolutely have to happen face-to-face but the vast majority of the new generation of employees will prefer working from any place they desire over an office building!

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