The Power Shift in Mobility
Teresa Howe, SCRP, SGMS
Coaches and consults with the Relocation, Mobility, and Real Estate industry leaders to help generate more revenue, get more customers, and create loyal fans. TRH Consulting 949.500.4927
Lately, there has been a lot of talk about transparency in the real estate and relocation industry. I like transparency. Anyone who knows me knows that I am pretty transparent. You pretty well always know where you stand with me, for good or bad. The changes from the NAR settlement and lawsuits have created a power shift, forcing more transparency around pricing and performance, ultimately leading to better service delivery.
Do the right thing for the consumer.
I have recently been traveling more, and a few things on a recent trip struck me. I was staying at a Marriott, and only one restaurant was open for breakfast. The breakfast buffet was $25, and every dish on the made-to-order menu was also $25. They made it pretty clear they were getting $25 a head no matter what. But what was particularly annoying is that they added a $4.50 ‘service charge’ and had a line for gratuity. Literally, the only thing the waitress did was bring the bill and a glass of water. I got everything myself. So, it’s not $25. It’s that plus $4.50, plus tax and gratuity if you choose to offer that up. Not very transparent.
Uber is another one that has upped their game on junk and hidden fees. I have noticed that sometimes, when I try to call an Uber, it requires me to ‘schedule’ it even though I want it right now. That way, they can charge a scheduling fee even if it is four minutes after the current time. They not only charge the actual trip fare but also a booking fee, scheduling fee, ‘Access for All’ fee (whatever that is), airport surcharge if you are going there, and, in California, a CA Driver Benefits fee. Then, of course, the tip is calculated on all of the above, not just the trip fare. So, my 17-mile ride to the airport was $34.14, but it cost me $80.67. Not ok. I am definitely switching to Lyft, which may not be much better. Until they get more competition, they will continue to gouge the consumer because they can.
Not long ago, I passed through the Houston airport on a connection. I hate going to that airport because I always feel it is out of the way to anywhere I am going, except maybe Houston. But I had a long enough layover to grab some food. I quickly realized that every single sit-down restaurant in my terminal was managed (and I think owned) by the same restaurant group. The prices were all artificially inflated because they had no competition. I stopped at several restaurants to find one that wasn’t ridiculously overpriced. I would pay $18 for a tiny, watery, spicy margarita and at least $24.99 for a very average small flatbread or any like entree, no matter which restaurant it was in. The consumer literally has no options for a reasonably priced meal at a sit-down restaurant at that airport. Conversely, I paid $14.99 this week for a fabulous flatbread, similar in size, at the Detroit airport because there was competition.
We could all list many more examples like the ones above. The airline industry has become the latest target of government oversight regarding hidden and junk fees. It is a 106 billion dollar industry in the US, and even though we have a choice between several airlines, all airlines have established very similar models and pricing without any previous oversight. They brought it on themselves. Companies know when you don’t have a choice, and they take advantage of it.
The irony of it all.
I guess that is why I find the accusations about agents and how they are compensated ironic. The plaintiff's attorneys used words like ‘cartel’ in their case. That one made me laugh out loud. There are about 1.5 million Realtors in the US, which equals about 1.5 million ways each agent might price and articulate their services. While brokerages may set parameters or exception rules by which they would like the agents to operate, the agents typically do whatever they want because they are independent contractors.
You can throw a rock and find a discount brokerage or agent willing to handle a real estate transaction for significantly less than what is average in their market. ?I understand that a home purchase has a far greater price point than an Uber ride. However, the buyer has never had to worry about compensating their agent in the past, so there was no need for a discussion about it. That, unfortunately, made buyer’s agents a bit lazy regarding how they articulated their value. They just didn’t need to do it. ?The transparency regarding who pays what is a healthy dialog even though it is putting a huge strain on the buyer pool, which is already struggling to afford homeownership.
领英推荐
The trickle-down effect to Mobility.
The lawsuits and the NAR settlement have a significant trickle-down effect on the mobility process. Honestly, it is not so bad that it will ultimately reshape the industry. I don’t like that the buyer has to come up with the funds to pay their agent, and everyone may make less money, and it may cost the corporation more to relocate talent. But I like how it is changing our industry to be more transparent and engaged. We have pulled back the veil of secrecy and are back to working as a team for the best interest of all parties.
Here is what I have observed. The power has shifted:
There has been a power shift to distribute the duty of care equally among all providers. We need each other more than ever. It’s time to openly engage in a collaborative way as we navigate the uncertainty ahead. If we are flexible and open-minded, we just might reimagine our industry for the better.
I hope you will let me know if I can help you in any way, no matter what sector you represent. As a neutral party, I have gotten excellent feedback on the presentations I have given on potential solutions and repercussions from the NAR settlement changes. If you would like me to speak at your local relocation council event or facilitate a corporate roundtable, I can be reached at [email protected]. I’m here to help.
For more articles on how to navigate the NAR Settlement, go to www.teresahowe.com/blog
Business Development & Relocation Director at huntington & ellis, A Real Estate Agency | Las Vegas
5 个月Great perspective!
Relocation & Referral Director
5 个月Well said Teresa! Thank you for this very comprehensive view of where we were, where we are and where we hope to be headed. We are all in this together!
Specialist in Cutting Taxes by 30-46% per year for Those Paying $500K+ Annually
5 个月Times of change open opportunities for collaboration. How can we ensure fair practices while delivering value? Teresa Howe, SCRP, SGMS
Global Relocation Professional
5 个月Very well said Teresa Howe, SCRP, SGMS!
Passionate Talent Mobility Expert / Partnering with Clients and HR to facilitate relocation and real estate success in suburban Philadelphia.
5 个月Thank you Teresa Howe, SCRP, SGMS , well said! We are at a critical time in the industry and I hope that organizations like WERC continue to bring this critical issue to the forefront.