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About the USA DANGER Report
The “DANGER Report: Analyses the Residential Real Estate Brokerage Industry in the United States of America” is a comprehensive report commissioned by the National Association of REALTORS® (NAR). This extensive document delves into the various threats and challenges facing the residential real estate brokerage industry over the next 3-5 years (2015-2020).
Released on May 14, 2015, this seminal report aims to identify and address the most significant threats and risks that could impact the industry. It is an essential tool for real estate professionals, offering strategic insights to help navigate and mitigate these challenges.
Report Structure
The “DANGER Report: Analyses the Residential Real Estate Brokerage Industry in the United States of America” is a comprehensive report commissioned by the National Association of REALTORS® (NAR). This extensive document delves into the various threats and challenges facing the residential real estate brokerage industry over the next 3-5 years. Here are the key aspects of the report:
Five Sections
The report is structured into five major sections, each focusing on different aspects of the industry. These sections cover the risks and challenges faced by agents, brokers, the National Association of REALTORS®, state/local associations of REALTORS®, and MLS organizations.
50 Dangers
It identifies and analyzes 50 significant dangers impacting the residential real estate industry. These dangers include issues like the prevalence of marginal agents, downward pressure on commissions, regulatory challenges, and data control problems.
164 Pages
The report spans 164 pages, offering detailed insights and comprehensive analyses based on extensive research, including interviews with industry leaders and a national survey of thousands of REALTORS®.
Free Download
Courtesy of the National Association of REALTORS®, the report is available for free download. It is intended to foster an industry-wide conversation about the most pressing challenges, encouraging stakeholders to collaborate on developing effective solutions.
Factoids on the Danger Report
The DANGER Report is based on 74 one-on-one interviews of industry CEOs and leaders conducted by Stefan Swanepoel.
Comments from those interviewed were confidential and no input was attributed to any particular individuals.
The Report does not seek to place blame or assess the past performance or activities of any organization. It is designed as a forward-looking assessment of possible challenges over the next few years.
Report also includes data from a comprehensive national survey with input from 7,899 REALTORS®.
Research also includes review of an exhaustive list of 200+ studies, reports, white papers, abstracts and surveys on all related issues – total of 6,051 pages.
Report Sections
The report is structured into five major sections, each focusing on different aspects of the industry. These sections cover the risks and challenges faced by agents, brokers, the National Association of REALTORS®, state/local associations of REALTORS®, and MLS organizations.
Dangers Impacting Agents
The real estate industry faces credibility issues due to many part-time, untrained, and unethical agents, resulting from low entry barriers and minimal education requirements. This gap creates a large disparity in service quality, tarnishing the industry’s reputation and lacking initiatives to elevate national standards, which could harm both the industry and consumers.
Dangers Impacting Brokers
Real estate brokers face significant challenges from increased regulatory compliance costs, technological advancements, and new business models that disrupt traditional operations and profit margins. Additionally, the rise of paper brokerages, consumer confidence in data accuracy, and the potential entry of large consumer brands further threaten the industry’s stability and brokers’ profitability.
Dangers Impacting NAR
NAR faces significant challenges due to its complex decision-making structure, which slows down its ability to adapt and respond to rapid industry changes driven by technological advancements and shifting consumer preferences. While this structure ensures thorough vetting and member inclusion, it hinders NAR’s agility, potentially resulting in missed opportunities.
Dangers Impacting Associations
The real estate industry is undergoing rapid changes, but many leaders of state and local associations are struggling to keep up, leading to missed opportunities and a lack of innovation. To remain relevant and effective, these leaders must embrace ongoing education, professional development, and a willingness to adapt, ensuring their associations can meet the evolving needs of their members and the industry.
Dangers Impacting MLS
The MLS system faces significant challenges, including disruption from new entrants, technological obsolescence, legal risks from patent trolls, and increased competition from consumer-facing websites. To remain relevant and effective, MLSs must invest in modernization, enhance service offerings, and foster collaboration with industry stakeholders.
Thoughts from Industry Leaders
Connecting with Consumers (2:40)
Stefan Swanepoel and industry executives discuss evolving consumer expectations in real estate, emphasizing the importance of trusted advisors despite abundant online information. They highlight the need for professionals to interpret and navigate this data and see an opportunity to educate millennials about homeownership. They also emphasize the potential for the next generation of realtors to succeed by engaging millennials and promoting real estate careers.
At a Crossroads (2:51)
Stefan Swanepoel speaks with Colleen Badagliacco (2015 Chair of NAR’s Strategic Thinking Advisory Committee), Diane Ruggiero (CEO of Kansas City Regional Association of REALTORS®), Matthew Consalvo (CEO of Arizona Regional Multiple Listing Service), Dallas Hancock (CEO of Peoria Area Association of REALTORS®), and Joel Singer (CEO of California Association of REALTORS®) on the real estate industry being at a crossroads.
Remaining Relevant (2:37)
Stefan Swanepoel speaks with Richard Barkett (CEO of Great Fort Lauderdale REALTORS®), Pam O’Connor (President & CEO of Leading RE), Christine Todd (CEO of Northern Virginia Association of REALTORS®), and Bob Hale (President & CEO of Houston Association of REALTORS®) on remaining relevant.
The Data Challenge (2:42)
Stefan Swanepoel speaks with Kipp Cooper (Association Executive from Huntsville Area Association of REALTORS®), Paul Hilgers (CEO of Austin Board of REALTORS®), Art Carter (CEO of California Regional MLS), and Gary Simonsen (CEO of Canadian Real Estate Association) on what keeps them up at night and the challenge of big data.
Explore the Dangers
