Why the broker-centric model is in decline

  • The broker-centric life cycle, as noted in "The Innovator's Dilemma," is in decline.
  • Real estate is now a technology industry that sells homes.
  • Of homebuyers age 36-50, 50 percent found the home they purchased on the internet; 44 percent of the time a broker was paid for not finding the buyer a home.

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.