The latest edition of Business Week (August 20th) , the topic is The Future of Work.  The special edition is  devoted to a fascinating and far ranging discussion about the future of work.  It's a topic that has true relevance for real estate and mortgage professionals.  What is the future of our work in the real estate industry?  And perhaps a more troubling question...Is there a future for our work? 

New models and new methods are transforming the real estate industry.  In addition, a bewildering and complex entanglement of exterior scenarios such as the lending crisis and declining real estate values are impacting the very underpinnings of what defines a real estate transaction. 

Lending professionals are re-defining the criteria for loan approvals. Consumers have access to a variety of service plans for real estate services.  And the Internet is changing the way in which consumers meet and interact with the real estate industry. 

No, longer gate keepers of information nor even necessarily the primary providers of information about the real estate process, real estate practitioners are faced with a potentially life altering question. Is There A future for the job of of a Real Estate Agent? Many are choosing to ignore it.  Others cannot contemplate a future beyond the promise of the paycheck from the next transaction. But it's a New Frontier we must explore if we intend to survive.

In his book, A Whole New Mind, Daniel Pink talks about the 3 A's which will dramatically transform the face of industry in the next decade.  He lists them as Automation, Asian and Abundance.  It's a book well worth putting on your reading list for this year.  His insights about the re-definition of what will be important about work in general are echoed in the article from Business Week  which references research being done at MIT & Harvard.  Economist at these institutions are  studying changes in the economy within the past decade which are making some workers indispensable and others totally irrelevant.  Take a moment to contemplate this question.  Think about how this issues impacts the real estate industry. 

1.  Can your job be boiled down to a routine?

This is a serious question for the real estate industry.  Most MLS systems have standardized forms.  And there are agents who think that selling real estate is about being able to complete the blanks in a template form, turn in a standard ad, stick a manufactured sign in the yard, make a brochure from a template, fill out routine paperwork, and sit through a closing.  If this sounds like your job...this study indicates you are very replaceable!  ( I have emphasized certain words to draw attention to the fact that these functions are easily replicated by a machine, program or with the assistance of an individual who is marginally compensated.

Customer service within the United States is changing.  How often do you interact with a machine prior to talking with a human being?  How often does the machine answer your question without any human interaction? We are being trained to bypass "humans" unless absolutely necessary.  And, for many of us,  the necessity of human interaction for many tasks is becoming less and less. Even a trip to the grocery store has us checking ourselves out and bagging our own groceries.

Furthermore,  many jobs that do require human interaction can often be outsourced to other countries for much less than the average American worker expects to be paid.  Did you know that many banks are now outsourcing their inquiries to overseas call centers to handle the deluge of the foreclosure crisis?  While Americans are loosing their homes... Customer Service agents from India are now handling some of the basic inquires which may be required when negotiating a short sale.

Real Estate Professionals will need to gain a clear understanding of the elements which make their jobs unique.  There are several services, some still in their infancy which are seeking to bridge the gap of professional expertise regarding property values.  This should not be regarded as a threat but rather as a challenge to re-define our role.  Zillow and Redfin and other on-line service providers are renegotiating the contract the consumer has with the source of their information.  This process will accelerate in the future.  Do NOT expect it to go away!

Real Estate professionals have the most hands-on real life experience of local real estate markets. However if consumers are not convinced about the superior value we can provide, they will understandably feel it prudent to pay much less, if at all,for services they can find elsewhere at a better value.

Many industry's have faced this challenge and are successfully re-inventing themselves.  I can remember the days in which secretaries typed, took notes and answered phones.  Today, I can hire a service to do that for much less than the wages I would pay to a secretary.  Today's Administrative Assistants operate in a fashion far more sophisticated than early practitioners of the craft.  Today, an Administrative Assistant  may be involved in book keeping, scheduling and coordinating meetings and researching...a far cry from answering phones all day. 

We need to wake up to the fact that real estate practitioners who are not re-defining their roles are being constricted by the narrow instincts of the market.  This instinct, like a herd mentality will drive hard towards the lowest common denominator until and unless it is convinced that to do so is not in it's best interest.  This question must be addressed if we expect to have a Future for Work as Real Estate Professionals! 

Snapshots for the Year Ahead...2007 Predictions

The Emergence of the "Wisdom Practitioner"...

5.  In 2007, it won't simply be about whom you know but how you integrate that with what you know and why that is relevant.  As real estate consumers become incredibly savvy at finding out information, there will be an urgent need to making sense of this torrent of information.  Knowledge without wisdom is limited in its usefulness.  We will see the rise of the "wisdom practitioner", consultants who know their market, understand their clients and have reliable and effective methods of connecting with the their audience. The "wisdom practioner" will be a human portal of connectivity for clients, services, referrals, recommendations, inspiration and guidance.  These enlightened visionaries will transform the meaning of agent fiduciary.

The Broker as my Therapist?? 

6.  In 2007 as technology and high touch synergistically create new models of client to agent interaction, we will also see this  impact broker to agent interactions.  Traditional brokerage models which depend on mass numbers without investing in the growth and maturity of the individual agent will find it increasingly cost prohibitive to be profitable.  Motivating agents will have to incorporate more than waiving the dollar bill banner. Increasingly the spotlight will focus on the "intangibles; inner motivation & success training, specialization & niche marketing and business administration. Forward thinking Brokers will begin to explore more holistic, organic approaches to enhance and increase agent productivity.  Training that incorporates life style balance and business acumen into teaching modules will soar in popularity as agents seek to understand how to tap into a deeper source of energy and well-being.

It's Not If but How you'll Learn your ABC's this year...

7.  In 2007, it will become increasingly expensive to be uneducated.  The question will no longer be about whether you receive your education; rather it will be about how you get it.  Will you obtain education willingly or unwillingly, paid for or exacted from you in fines, lost commissions or lawsuits.  Progressive real estate practioners will recognize the need for an enhanced knowledge base as a foundational requirement because new technology, systems and challenges in the real estate industry like fraud and foreclosures now mandate it.  Brokers will critically evaluate the cost of agents who resist education in terms of dollars and cents by evaluating the profits marginalization of error and legal wrong doing. The light will dawn for many part time practitioners who will realize that there is nothing incidental about the implications of a transaction as important as a real estate sale or purchase.

Yes, It's all about you...

8. 2007 is a pivotal year in the world and in the real estate industry.  Our environment will move, morph and transform in subtle and dramatic ways.  Stability on the inside of us will grow in importance as instability and change continue to dominate the external reality.  It will be a year of promise and peril, engagement and disconnect, but quite unlike any other time before it in history, increasingly we will be aware that the choice has always been ours to make.

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