What are the New Real Estate Business Models?
What are the new real estate business models? Global Mobility Solutions’ 2019 Forum included a presentation by Ken Jenny, Executive Director, tranCen.com, Inc. Ken is an expert in the residential real estate industry. He has over 38 years of diverse and progressive experience in brokerage, MLS, franchising, online marketing, business processes, and technology. This experience includes an emphasis on executing tangible ways to improve the consumer real estate experience. From being a real estate agent to a corporate executive to an independent industry advisor, Ken has examined and designed effective change strategies for nearly every aspect of the residential real estate industry. Ken’s relentless consumer-first thinking addresses the ever-changing challenges facing the industry today.
Ken’s previous positions include the COO of Coldwell Banker Residential Affiliates, the CMO of Prudential Real Estate, and the CEO of RealEstate.com. Ken introduced attendees to new real estate business models and their implications for business and consumers.
What do New Real Estate Business Models Look Like?
Ken noted how new real estate business models differ from the current real estate business models. In effect, these new models offer custom solutions to what they perceive as the customer’s pain points in the current business models. Several key differences include:
- Easier processes for the seller
- One buyer (the alternative company) to work with
- Increasing the speed to closing
In Global Mobility Solutions’ White Paper: 2019 Industry Update – Talent Mobility, Real Estate, Household Goods, and Immigration, our experts explain these key differences in further detail. A full review of the many aspects of using a licensed and experienced Listing Agent are presented. These aspects are then compared to using an alternative company. A few important points to note about new real estate business models include:
- Homes often must meet several restrictive criteria
- The alternative company is the only buyer
- Offers are negotiated using online real estate data
- Closing statement is net of service fees (averaging 6.5%), inspection costs, and repair costs
As a result, our team of real estate experts developed the following guidelines. These guidelines are helpful for sellers who may be considering using a new real estate business model:
Sellers may want to use an alternative company and not a Listing Agent if they:
- Are not cost conscious.
- Desire to choose their own closing date.
- Feel comfortable relying on online real estate data.
- Are willing to market their home to only one buyer (the alternative company).
Sellers may want to use a Listing Agent and not an alternative company if they:
- Are cost conscious and seeking to lower any repair costs.
- Are able to work with a closing date negotiated with a Buyer, contingent on several components including appraisals and financing.
- Prefer a licensed professional appraiser to determine the value of their home.
- Desire a licensed real estate professional to negotiate the sale of their home for top dollar.
- Feel comfortable relying on a licensed and experienced personal representative that looks out for their best interests.
How are the Best Real Estate Companies Responding to New Real Estate Business Models?
Global Mobility Solutions chooses to work with the “best of the best” in our partner networks. In real estate, our partners must consistently meet stringent service levels. They must also deliver exceptional customer satisfaction as measured by customer surveys. As a result, GMS real estate partners provide unparalleled levels of service and satisfaction to our clients and their relocating employees.
These partners combine the best aspects of the current business model with the best features of the new real estate business models. As a result, they are able to deliver truly outstanding outcomes for our clients and their transferees. In order to enhance current marketing programs, GMS partners may use Virtual StagingTM to provide 24/7 access to homes without any inconvenience to the current owner. To speed the closing process, GMS partners may use Electronic Closing Platforms (eClosing). These platforms include features such as remote online notarization and eSignatures. GMS real estate partners offer a “restomod” approach to their real estate businesses, incorporating the best aspects of traditional real estate business models and the best aspects of new real estate business models.
What Does This Mean?
Companies that encourage transferees to buy instead of rent should be sure to provide their relocating employees with the best service in the industry. By using a combination of traditional and new real estate business models, the GMS real estate partner network delivers outstanding performance. Transferees with home sales and purchases will gain the advantages of advanced technologies and faster processes. They will also retain all the benefits of working with licensed and experienced real estate agents.
What Should Employers do About the New Real Estate Business Models?
Companies should work with an experienced and knowledgeable Relocation Management Company (RMC). RMCs provide extensive solutions when it comes to relocating new hires and transferees who need to sell and buy homes using new real estate business models. Companies should review their relocation programs. This will help ensure they have a competitive advantage. Also, it will ensure their program provides the highest level of relocation benefits and services for their employees.
GMS’ team of corporate relocation experts has helped thousands of our clients understand how they can provide exceptional real estate services to their new hires and relocating employees. Our team can help your company understand how to leverage the benefits of a partner network that represents the “best of the best” in the real estate industry for your transferees.
GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.
Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.
Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss new real estate business models, or give us a call at 800.617.1904 or 480.922.0700 today.