Let’s talk science. I won’t go into too much detail; it isn’t my favorite subject. But it’s something that we should talk about.
In physics, critical mass is a nuclear term. It’s the minimum amount of a given material that you need to set off a self-sustaining chain reaction. While that may be a good thing in nuclear physics — where you typically want to start chain reactions — you don’t usually want to see the same sort of reaction in a business setting.
We are approaching that critical mass in real estate.
It all comes down to software.
It’s counter-intuitive for me to say, but the real estate industry is reaching a point where there is too much software out there.
Recently, Lone Wolf Technologies released a joint report with T3 Sixty that examined the current state of software in real estate and explored what needs to happen in the future for technology usage to become sustainable. Through the research conducted, we learned that the average brokerage uses 20 or more pieces of software for day-to-day processes.
Surprisingly, that number was 12 in 2020.
This means that since then, brokerages have added at least eight new tools to their business — and from that information, we can draw conclusions about the amount of software out there.
1. That number likely grows exponentially for agents.
When you’re running a brokerage, you don’t add a new piece of software on a whim. There’s a process: identify a need, build a business case, assess options, and see if it fits in the budget. You still end up with eight new pieces in a couple of years.
As an agent, you typically have a lot more freedom to test out new software options. You might sign up for a free trial; you might get a recommendation; you might see a fantastic Black Friday offer. It doesn’t take as much due diligence to add to your tech stack, and that can get unsustainable quickly.
2. It’s overwhelming to work with.
Imagine this. You’re trying to set up an ad for a listing…