About the Report

In today’s rapidly changing real estate industry, proactive planning is essential for sustained success. Adapting to new trends, anticipating shifts, and embracing emerging technologies offer brokers and agents a competitive advantage. However, in 2024, these actions are more critical than ever as the residential real estate industry undergoes one of its most significant transformations.

The pandemic spurred the adoption of new business models, accelerated technological advancements, and led to rising interest rates. Over the past year, these challenges have only intensified. The largest lawsuit in the National Association of Realtors’ 116-year history, has affected nearly every real estate brokerage, buyer agency agreement, and MLS organization, pushing them to comply with new regulatory requirements. The industry is grappling with an atmosphere of confusion and uncertainty, with leaders working tirelessly to navigate these tumultuous times and prepare for 2025.

Leadership is needed now more than ever, yet it remains scarce. Some leaders are actively steering their companies through the storm, while others are still struggling to understand the full scope of the changes and their implications. Many, fearing additional lawsuits, have chosen to withdraw or remain silent.

Amid the legal challenges, regulatory shifts, the rise of artificial intelligence, and increasing government scrutiny, it is clear that the residential real estate industry stands at a pivotal moment. This moment presents a rare opportunity to reshape the industry, transforming the home-buying process into a more transparent, modern, and digital experience, led by skilled professionals.

T3 Sixty is committed to producing an objective, balanced, and in-depth report to serve as a guide for brokers, agents, associations, MLS organizations, and other industry stakeholders. Our goal is to address critical issues and help the industry navigate the evolving landscape by identifying and seizing new opportunities.

In the ever-evolving landscape of residential real estate, strategic foresight is essential. Anticipating shifts, embracing emerging trends, and adopting new technologies provide significant competitive advantages. As frustrations over ongoing lawsuits, the National Association of Realtors’ settlement, and required changes to commissions and buyer brokerage have mounted, it has clearly become evident that the industry stands at a pivotal juncture.

With three decades of research and nearly 60 books, reports, and studies to our credit, it is clear to us that 2024 and 2025 will be transformative years for the industry. A follow-up to the acclaimed 2015 D.A.N.G.E.R Report was suggested in 2019, but it was delayed due to the pandemic. At the T3 Leadership Summit this past May, the idea of a 10-year anniversary edition for 2025 resurfaced.

T3 Sixty’s leadership, however, felt that the industry could not close 2024 discouraged, or in a state of uncertainty. As a result, a new forward-thinking report identifying the opportunities was considered both necessary and timely. Insights that encourage stakeholders, brokers, and agents to explore progressive strategies and bold initiatives for addressing the future.

The Opportunity Report was swiftly developed and prioritized for immediate distribution. While it is not a scientific study supported by empirical data, it provides valuable insights drawn from interviews with 50 of the most innovative and forward-thinking leaders in residential real estate.

Industry stakeholders face a rare, unparalleled opportunity to reshape the real estate landscape and transform the home buying and selling experience. Although reengineering the process into a more efficient, digital, and transparent model centered on the consumer may take a decade or longer, the long-term benefits will far outweigh the effort.

You are in a fortunate position to be part of this pivotal moment in the industry, and this report presents numerous opportunities designed to inspire transformative action.

The 2015 D.A.N.G.E.R Report was a sage piece of work that accurately foretold many of the challenges the residential real estate industry would face in the future. Today, we stand again at a crossroads in our industry. Damaging plaintiff lawsuits, an aggressive antitrust environment, reputational damage to the industry, disruptive technologies like AI, the rise of agent teams, two harmful portals trying to Uberize agents, pressure on brokerage margins, and a housing affordability crisis all present challenges that will guarantee more change. Yet this will remain a growing $50 trillion industry that will continue to generate hundreds of billions in fees annually. Change should be viewed by the best, brightest, and agile for the tremendous opportunity it is.

Stefan Swanepoel and the team at T3 Sixty have again gathered dozens of industry experts, interviewed them, and amalgamated their insights into an invaluable assessment of the industry’s near future. Homes.com welcomed the opportunity to support this Opportunity Report because this is a very relevant and invaluable sequel to the D.A.N.G.E.R. Report. My hope is that our clients and industry friends will leverage the insights herein to thrive regardless of the changes and challenges ahead.

Several insights resonated with me as a leader at one of the top homebuying portals, and I am confident that each of you will find your own unique resonance within the Report.

Clearly new business models will emerge from necessity, whether you are an agent, a team, a brokerage, a MLS, an association, or a portal. I believe that a great North Star in the evolving market is keeping the customer in the forefront. Being clear about who all these customers are and what they want is important.

For Homes.com we see real opportunity in refocusing on who a portal’s customer should be and what they expect and need. We want to avoid the trap other portals fell into: the belief that their shareholders or a tiny subset of buyer agents were their most important customers.

Our customers are the home seller, the home buyer, the buyer agent, the seller agent, and the brokerage. Based upon that understanding we have built a new unique business model on the principle of “Your Listing, Your Lead.” We are the only portal with this principle and the only portal that is in harmony with all the important constituencies we serve. We all know that there are exceptional agents and brands out there who sellers can trust to sell their homes. The sellers and their listing agents want the leads to come to the listing agent. Those leads are the best source for selling the home and creating future business for the listing agent. While 90% of buyers rely on buyer agents, they also always shop on portals directly and want to have the ability to reach out to listing agents with questions especially early in their buyer journey. The best and most experienced buyer agents want to connect with their buyers because of their skills, not because they had to give up half their commission to a portal. Experience matters and buyers and sellers value it.

My son, like my father before, is studying to become an architect. He will need to study for 10,000 hours before he practices on his own and designs his first house. Yet, today an agent with 40 hours of experience can buy a lead from a portal and sell the house. My mother eventually had 20,000 hours of experience as a real estate agent, and she knew how to sell a home. Consumers prefer agents with experience.

I trust you will find your own valuable insights in this T3 Sixty Opportunity Report that help you find your success in the years to come.

T3 Sixty is the premier management consultancy serving the residential real estate industry. As trusted advisors to executives, we specialize in brokerage, technology, organized real estate, and offer comprehensive market intelligence and research, executive search services, and event management.

Our team brings over 300 years of collective industry expertise, and includes numerous former industry CEOs, presidents, and C-suite leaders with experience in managing brokerages, Realtor associations, MLS organizations, technology firms, educational companies, research teams, and event planning operations.

T3 Sixty are the owners and publishers of:

• The Opportunity Report
• Swanepoel Trends Report (20 editions)
• SP 200 (11 editions)
• Real Estate Confronts series (9 editions)
• T3 Tech Report (5 editions)
• Real Estate Almanac (4 editions)
• MLS Agenda (2 editions)
• D.A.N.G.E.R Report (2 editions)

T3 Sixty also owns Real Estate News, a premier daily news service in the real estate industry. For more information on T3 Sixty, its services or publications, call 707-T3-Sixty (707-837-4989) or visit t360.com.