The business model as we’re operating today cannot survive too many more years. We have too much brick and mortar at retail prices with too few people occupying it,
Los Angeles, CA (Vocus/PRWEB) February 10, 2011
Founder and owner of John Aaroe Group gives his view about today's business of Real Estate. He touches on the personal nature of buying and selling homes and how technology today interacts with that process.
Restructuring the business model: John Aaroe sees American industries –airlines, automobiles, and restaurants- madly retooling to survive. “Ours is the only one that isn’t endeavoring to make what we do faster cheaper and easier. We’re not unlike ‘general Motors 20 years ago, “ he comments. He points to the tremendous inefficiency associated with four back rooms –sales, escrow, mortgages, and title- being used to execute one transaction. “We need to bring these components together through technology, so we can pull the four different legs of the transaction onto one platform where all data reside,” he comments.
Streamline and thrive : “The business model as we’re operating today cannot survive too many more years. We have too much brick and mortar at retail prices with too few people occupying it,” he says. “ Technology has moved people to mobile platforms, and we’re bound with legacy real estate that we have no use for and can’t afford.
Social Media challenges: John Aaroe Group is pondering how to balance maintaining a company brand and integrity with the need for agents to express their unique voices on social media platforms.
“You don’t want to censor agents but how do we migrate our agents toward everyone having their own voice in social media and still retain the message of a company brand?” He acknowledges that he doesn’t yet have an answer.
“Companies will need to struggle with how to do it and have some control over quality,” he believes.
Short sales strategy: Though short sales are a big portion of business right now Aaroe wants to be certain agents aren’t spending valuable time sitting on hold and waiting for banks to produce paperwork. His company hired a full time short sale negotiator to mange short sale deals, allowing agents to continue working the retail end of the business. It’s infinitely more efficient because short sales eat up so much time and tend not to be as lucrative as other sales,” he says. And when the recession does end Aaroe want to be certain that “full freight” sales and relationships haven’t been sidelined. “You still want that retail book of business, and if you spent the last 36 month dealing with lenders on short sales, you won’t have it in place,” he observes.
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