RECON Intelligence Services prides itself in the quality of our research, the creativity of our thoughts and the innovative nature of the concepts that we advocate.  Accordingly we have, over the past several years, attempted to make this column as original and thought provoking as possible.  However, this month we are going to deter from that track for what we would consider the common good.

Over the past two years a relatively small group of thinkers has been trying to convince the industry to engage consumer-generated agent review, rating and comment systems.  We have been part of that group.  Although we have raised a wide range of cogent and rational arguments in favor of this practice, our success to date has been limited to a small group of associations, one national brokerage and a few forward thinking regional brokerages.

The vast majority of the industry remains steadfast in its belief that not only is real estate agent rating and ranking not necessary, but that it will simply not catch on in the real estate industry because our consumers are somehow different.

Our support of agent ranking, rating and commenting has never been based upon the fact that we want it, although we should.  It has not been based upon a sense that it would raise the agent bar, although it probably would.  Our support of this concept has been based upon our belief that if the industry doesn’t set up its own program, a third party will do so.  In all likelihood, such a third party will base its program on getting between the agent and the consumer and capturing a share of the commission.  That we, as an industry, would take such a risk clearly outweighs any potential downsides.

We, as an industry, are running out of time to get on board with this cause.  As we move closer to the new market environment that will be created by the rehabilitation of the housing market, the end of the recession and the final deployment of the new consumer, the pace of change within the real estate space is quickening.  We are in the warm up lap of a whole new transactional and business environment.  Within the next several months the pace car will leave the track and the green flag will be lowered.  That moment in time will be for performance, not development.

The trendwatching.com organization has had a long and distinguished history conducting research into the trends that are impacting the American marketplace and business community.  Each month they provide their subscribers with a trend briefing that is without peer, especially as it relates to the real estate industry.

For September, trendwatching.com’s trends brief is entitled

This exceptional article covers, in great detail; just how far rating, ranking and review have come across the entire American economy.

The point of this article is simple.  Whether you are a real estate industry leader or decision maker, or simply a practitioner trying to set your course in the new market, it is incumbent upon you to take a few moments and review the trendwatching.com article at http://trendwatching.com/briefing/.

What will you learn from reading Transparency Triumph?

• The traumatic economic events of the past five years have traumatized the American consumer into a state of complete distrust of both institutions and advertisers

• Today’s consumer is focusing on trusted relationships and trusted sources of information, and accordingly is obsessed about rating, ranking and commenting on their own experiences as well as reading the rating and ranking of other consumers who they consider trustworthy

• Everyone and everything being offered to this consumer is going to be rated, ranked and commended upon

• Within the next 18 months accessing ranking, rating and commenting sites will have become a mandatory part of the responsible consumer experience

• The good news is that third party real estate agent and brokerage rating sites have yet to gain critical mass and acceptance

• There is still time for the industry to facilitate the reviewing, ranking and commenting activity within parameters that are fair to both consumers and real estate service providers

• The industry’s failure to realize this opportunity will create a permanent disability that will forever plague the agent and the industry

If after reading Transparency Triumph you remain opposed to the real estate industry undertaking an “agent sensitive” rating and ranking system, then at least you can say that you did your homework.  If on the other hand you learn from the article that agent and broker ranking and rating is clearly going to happen, just like it is happening to doctors, lawyers, CPAs, dentists, architects, teachers, restaurants and professors, and that the industry had best get about creating its own program, then use your power and influence to make it happen.

If the industry doesn’t respond to this trend on its way to becoming a rule, it will forever be unhappy as it suffers the fate of agent and broker rating and ranking systems designed and implemented by third parties that seek to exploit.  Why ever would we do this to ourselves?  We can make this happen, we can do this.