There’s an interesting article in Forbes (from last week) called, “Invest in the Disruptors of the Real Estate Industry.” It’s by Ross Gerber who runs a wealth and investment management firm out of LA called Gerber Kawasaki. He’s also a fellow Penn alum.
I like the article because I agree with the problem he’s identified. The real estate market is imperfect and inefficient. We need a proper electronic marketplace.
But I disagree with where he feels the solution will (or may) come from. I don’t think it’ll come from an incumbent like Zillow. They make money from agents and if they’re perceived to be driving down commissions, those customers are going to flee.
Instead, I believe it’s going to come from a new entrant—a startup. And like most disruptors it’ll probably seem benign and, frankly, a bit crazy at first. Agents will dismiss it as a silly tool that will never cut into their business.
But slowly and surely, that’s exactly what it’ll do.