T
he DANGER Report, written by Stefan Swanepoel and released in 2015, took a candid look at the risks facing residential real estate professionals. The report identified the 50 biggest threats to the industry, based on interviews with 70 executives and a survey of nearly 8,000 Realtors. Key findings included the presence of marginal agents, who posed a threat to the credibility of the industry due to their lack of training, ethics, or competence.

    The report also highlighted concerns about the existing compensation structure, which was seen as vulnerable to disruption by emerging companies like eXp, Redfin, and HomeSmart. These companies were predicted to become dominant national models, potentially upending the traditional broker-agent relationship.

    Despite its influence, The DANGER Report's warnings went largely unheeded at first. However, in recent years, many of the report's predictions have come true, including lawsuits that changed how agents get paid and challenged their value, a frozen housing market, and NAR upheaval. Even COVID-19, while not predicted by the report, has accelerated changes in the industry.

    Swanepoel's sequel to The DANGER Report is set to be released soon, focusing on opportunities rather than threats. However, before looking ahead, it's essential to understand what came before and how the industry responded – or failed to respond – to the warnings issued by The DANGER Report nearly a decade ago.