Evolving consumer expectations are disrupting every industry, and therefore the land industry is not any stranger to the present phenomenon. I lead the knowledge technology department at John L. Scott, a brokerage company with a footprint across Washington, Oregon, Idaho, and northern California. In my time working within the land industry, we've seen significant changes to the normal brokerage model. As an example, the subsequent generation of homebuyers has access to a mess of data at their fingertips, which may challenge the established order of buying and engagement preferences across every industry. Digital transformation and AI have made purchasing, brand interactions, and sophisticated transactions easier for consumers; from grocery delivery services to buy a vehicle online. Consumers want the purchasing process to be hassle-free, expecting certainty and value. they're increasingly willing to buy services that provide convenience and depend less on human interaction to accomplish their goals.
These evolving consumer habits and expectations, including technology digital transformations will continually drive drastic change and add new competitors across all industries. What differentiates the important estate market from other industries is consumers don't purchase a home frequently – a mean buyer stays in their home over 10 years. Home purchases are often the most important investment a consumer makes in their lifetime. As a result, the whole land industry won't drastically change overnight, but changes are in motion which will still impact the method of shopping for or selling a home.
The technology landscape for the important estate industry is extremely unique and sophisticated compared to other industries. The industry is shifting with changing business models, technology innovations, and growing competition from publicly-traded companies. These disruptions have resulted during a striking influx of latest products and corporations moving to aggressively address consumer trends. Innovation is happening through optimization of land transactions and consumer-direct home purchases. While market share remains marginal today for direct purchasing of homes, only time will tell how this segment will evolve.
Another unique facet of the important estate industry is that the brokerage and agent relationship. While most companies provide standard-essential technologies and set policies and processes to be used across various roles within a corporation, land agents have significantly more freedom to leverage any technology products needed to further their business.