Agents vs. The Web

Will the internet make agents obsolete?

I wrote a post on Inman.com, responding to comments that real estate agents are no longer as necessary, because buyers and sellers can look up houses and sales on the internet. Some believe that real estate brokerage and the MLS is a dying profession and agents aren't worth the fees they charge. The original article asked if agents were as vital as bread or cereal and should people pay more for nicer "packaging" (ie. services offered.) This was my response.

Submitted by Kristin Noll-Marsh on October 23, 2008 - 2:51pm.

"LOL! Isn't that the truth, Ruthmarie?

Imagine a world where sellers and buyers actually respect our time (because they are paying for it) and our expertise!

Unfortunately, there are always agents who don't even appreciate themselves enough to charge for what they have to offer and will give it away for free - making it harder for agents to earn a decent wage.

Free CMAs, free staging advice, free showings for buyers, free marketing advice....when will agents realize that what they know and what they can do is VALUABLE??

It reminds me of my mother and her crafts. She'd make these beautiful wreaths and only charge $25. I'd see similar items in stores for $150. She'd say, "Well, the supplies only cost this much.." and I'd say, "It's not the supplies, Mom, it's the talent it takes to do what you do with them!"

Agents need to realize that what we see as "easy" and "anyone can do it" is simply not true. The supplies (information) are available to everyone, but not everyone has the talent nor learned the skills it takes to know what to do with them.

Negotiating is a skill.

Staging a home is a skill.

Taking good photos is a skill.

Writing good ad copy is a skill.

Knowing where to advertise is a skill.

Properly pricing a property is a skill.

Understanding the ins & outs of a contract is a skill.

Gathering knowledge local laws and ordinences is a skill.

Recognizing adverse defects in a property is a skill.

Knowing what constitutes a good investment for resale is a skill.

Growing a network with other agents is a skill.

Building a good website is a skill.

Knowing the competition on the market is a skill.

Having all of those skills at once makes you an expert.

Notice I didn't mention showing houses, finding houses for sale or looking up what a house sold for. Those don't take skill. Anyone can do that.

A buyer or seller may be able to do one or two things on that skill list, but they won't be able to do them all - or as well as someone who does it every day, for years.

Sure, it may only take you 30 minutes to put together a CMA, but is that what you are paid for? How long did it take you to learn to do a CMA right? How many real estate hours did it take to learn your market, tour and show houses, learn the software etc? How many hours do you think it would take a seller to get it right? Take that into account when you are figuring what the 30 minutes is REALLY worth!

All the internet will give to buyers and sellers is access to lists of houses for sale and tax records of sold properties. Knowing what to do with that information is what takes skill.

Don't believe me? Look up a disease online. There will be plenty of information about the disease - stuff you couldn't find anywhere a few years ago. Now, having read about that disease and treatments available, are you ready to start treating a patient for that disease? No - that's why we still have doctors - a good doctor has the skill to take that information and do the right thing.

Agents need to understand that their value is not as gatekeepers of information - it never was, even in the days of MLS books and exclusive listings. Buyers could still use the classifieds and sellers could still throw up a lawn sign and put an ad in the paper. Buyers and sellers came to us not because we had all of the information, but because we made it EASIER for them to get it. Once they worked with us, they then realized all of the other stuff we knew that they were clueless about.

Even with all of the information available to them today, buyers and sellers still need our skills. But until agents see their own value, they will continue to undervalue themselves and not charge what they are worth.

The old commission system will not change until buyers and sellers are willing to pay for actual skill instead of a risk-free success fee. The power is in their hands - all they have to do is demand it and be willing to pay the consequences/take the risk.

Meanwhile, Agents like it this way, because then they don't have to put a value to their own skill. They need to realize that they are worth a lot more than they think.

Most of us need bread made for us - we have neither the time nor the skill to do it ourselves. But they've made it so easy for us to grab a loaf off the shelves, we've lost our appreciation of what it takes to make bread by hand.

Imagine if we didn't have any bakers at all - who would care about the packaging?"