In my talks I often preach that real innovation comes when we have the ingredients that got us to the moon: money, brains and passion.

In real estate today, these fundamentals are in place.

A new generation of passionate leaders is taking over — younger and better-educated agents, a new crop of innovative and fearless  brokers, and a slew of startup whiz kids. A recovering housing market and successful IPOs such as Zillow and Trulia are attracting supersmart professionals who want in on the largess.

Oscar Wilde said, “When I was young I thought that money was the most important thing in life; now that I am old I know that it is.”

Indeed, capital has returned to the industry and that is a good thing. The largest real estate company, Realogy Holdings Corp. ($6.16 billion market cap), has put a big dent in its debt and gone public with a fresh dose of capital (raised $1 billion with its IPO).

Re/Max has capital to invest after raising $225 million with its successful IPO this fall. One of the richest men in the world, Warren Buffett, is doubling down on real estate services with his Berkshire Hathaway HomeServices franchise. Can Keller Williams be far behind, capitalizing its rapidly growing enterprise?

Then, there are the awe-inspiring IPOs of Zillow ($2.85 billion market cap) and Trulia ($1.25 billion market cap). These two alone have a staggering amount of capital to invest in innovation, and stock prices that are perfectly poised for a slew of acquisitions. Realtor.com operator Move Inc. ($630 million market cap) will also rely on acquisitions as part of its strategy for growth.

There’s also the ripple effect. These success stories have spawned dozens of new venture-backed companies. I get a call a week from VCs asking about this or that real estate startup.

So, how does this play out?

1. New and better products will be created. The sky is the limit on innovation. Let your imagination go berserk.

2. Smaller tech companies will be  gobbled up, as Realtor.com, Trulia and Zillow square off in heated battle.

3. Brokers who don’t innovate or partner will be left in the dust. Old ways are most threatened at times like this.

4. Agents will be offered more and more products and better ways to do their job. Their growing independence will be even more emboldened.

5. New business models will be tried, further challenging the old guard to innovate.

Finally, and most importantly, the consumer will enjoy a better experience, buying, selling and renting homes.

Hooray!

Brad Inman is the founder and publisher of Inman News.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×