Many of us have heard the old expression, “If you do what you have always done. You are going to get what you have always gotten. If you aren’t happy with what you are getting, then stop doing what you have been doing!” And while to some extent that remains true, you must put yourself in a position to understand that your business doesn’t live in a vacuum. Outside forces are always in motion. You must remain aware of what those forces are doing and how they will impact what you do on the results you are seeing. For both mortgage and real estate, outside forces have been at play to reshape both industries, with more emphasis on technology and less expectation of personal experience for the customer. Pressure on margins with lower total revenue per transaction is real. While all of these are not absolute, the reality is, we are looking at changes that are very real, and the number of ways to deal with those changes continues to grow.
More and more of the jobs on the mortgage side that were once very labor intensive are giving way to technology. AI is very real, and if you aren’t preparing for it, this 24/7/365 tool can leave many on the sidelines. Expanded use of automated systems will further eliminate people from the process. Fewer people, thinner margins; thinner margins, the more transactions the remaining people will need to acquire, while growing the number of opportunities and revenue streams as well.
Over the next few weeks, I want to discuss many of the topics discussed above with the idea that if you get a good look at what is in front of you, you have a chance to select your business model and plan accordingly. Mortgage and real estate will continue to evolve. Some paths going forward will be successful, while others won’t do so well. Look at it like this, just like the evolution of television moving from black & white, to color; a handful of channels to thousands, VHS vs Beta Max to CDs, to DVDs, to Blu-ray, to digital, to streaming, to on demand; the business and the delivery systems and revenue streams are changing and you need to be aware of what they are and how you build your path to success within it.
Next week, I will start with margins and revenue. Then we can morph into systems and tools. Then spend some time doing a deeper dive into the old vs newer business models’ different companies are bringing to the table. I will be doing a video series with special guests that will appear on a number of different outlets, and I will keep you updated as we move forward! Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.
