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Why the broker-centric model is in decline

06/29/2016

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The “full-service” broker-centric real estate model will soon exit the “maturity” segment of its product life cycle and signal the beginning of a 20-year decline. We’ll explore how disruptive technologies triggered the broker-centric life cycle stages and the alternative business model that will replace the established one. Less than two years ago most brokers were sure the backbone of the broker-centric model — the MLS — would never be at risk, and just months ago, most brokers were sure that robots — computer algorithms — could never replace aspects of their job. Both events have now occurred. Let’s explore the one thing the real estate industry most fears: technology and the decline of the broker-centric model. Economist Raymond Vernon created the concept of a prod…

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