Will the Internet Disintermediate Real Estate Agents?
Disintermediation – now there is a ten dollar word. “Disintermediation” basically means to “cut out the middle man”.
There are a lot of people out there that feel the free and transparent flow of information on the internet will make the role of the real estate agent obsolete. Proponents of this thought point to the demise of the travel agent – largely brought on by how simple the internet has made it to book a plane ticket. Many agents and brokers want to lock down the data in the MLS, making it only available to licensed (and paying…) agents and brokers. They seem to want to snuff out the availability of free information. If we keep it all to ourselves, and dole it out to the consumer in metered doses, then we can ensure the consumer needs us, and will continue to use us. What a load of malarkey! Today’s consumer EXPECTS to be able to find information – and lots of it – freely and easily on the internet.
So what is an agent to do? How about FACILITATING the consumer’s quest for information? Become the “go to source” for real estate information in your area. Through your web site or blog you are placed in a prime position to be the giver of information.
What kind of information is the real estate consumer looking for?
The obvious answer is “listings”. There is no question that making rich listing data available to the consumer (preferably without registration, but that is a different post on its own) will help the consumer, in turn helping you. But real estate information isn’t just limited to listings. Consumers seek information on real estate subjects like:
- The buying and selling process – lenders, title companies, home inspectors, home warranties, legal help, negotiation tactics, etc etc.
- Real Estate terms and definitions
- Zoning laws and restrictions
- Home Owners Association information
- Home sales statistics
- Mortgage / financing information and contacts
- Local services – ranging from where to shop to what to eat to what to do.
- School information
- Crime statistics
- Local government information
- Demographic / census information
- Regional, local and neighborhood amenities
This list is virtually endless.
Not only is providing content what your visitors want, but search engines love it too. The major search engines like big, content rich sites. While I firmly believe you should always write web pages with the end visitor in mind, you can’t ignore SEO (Search Engine Optimization). Relevant content is king — for both visitors and search engines.
The internet is not going away folks. Rather than fear technology will disintermediate the real estate agent, USE the internet to give the consumer what they crave. Use technology to demonstrate your value and your expertise. Do that, and when a consumer has pulled together the information they need they will seek you out to help them through the process. At that point, the consumer is not a “hit”, or a “prospect”, or a “lead”. They are a client.
Roberta Murphy
Posted at 16:20h, 08 AugustJay,
I believe we are under the gun to provide as much information as we can through our real estate and blog sites.
Most internet clients want free access to listing information. They also want school stats, crime information, demographics, market data and as much community information as they can find–in real time if possible.
And if we are able to tell an entertaining story or two about the area, all the better!
Jay Thompson
Posted at 13:43h, 09 AugustAgreed Roberta! Clearly you “get it”. Many however, don’t seem to.
Dave
Posted at 17:33h, 09 AugustJay,
I’ve just started reading your blog on a regular basis. I’m not a realtor, I am a blogging/social media strategy guy who just happens to have his own house up for sale. So I thought I would share my own perspective.
While I may be a technology guy, I am far from qualified to sell my own house. I can Google, and I can search the MLS listings with the best of them. But I certainly am not qualified to figure out an appropriate selling price; I’m not gualified to negotiate the purchase contract, and without the help of my agent I would be absolutely lost during that period of time between sale and close.
A man who representes himself has a fool for a lawyer. I think that’s true in real estate as well as law.
Rate A Home
Posted at 04:24h, 10 AugustJay,
Perfectly said in the entire last paragraph!
Today’s agent is running scared of new technology to better help the “clients” approach to the largest investment of the buyer’s lives. As a Broker myself, I know how much we hate change. But it’s inevitable. Wouldn’t it be nice if we could go back not to many years, sit behind our desks and wait for the phone to ring? Show the house, present the offer, then close and off to the next. Not any more, the Internet savvy buyers are searching for the content you mentioned as well as “walk through check lists” and tools to help them choose.
The Agent of yesteryears that doesn’t embrace the change of today’s buyer’s needs and expectations will become the “caveman” commercial of Real-estate in the not to far future.
Jay Thompson
Posted at 06:44h, 10 AugustDave – you don’t know how refreshing it is to read something positive about working with an agent. Thanks! You should do a guest post on my blog about your experience! (and thanks for reading the blog! Steven Groves is supposed to be arranging a dinner for all of us. I hear you’re cooking… 🙂 )
PS: Tell Blair his blog domain name violates the NAR’s trademark of the word “Realtor”… email/call me if you need more details ([email protected])
RAH- *well* said.
Sherri Elliott
Posted at 07:07h, 10 AugustI agree with this entirley! Too many agents are waiting for people to come to them, and do not have a clue what to do once they get them! The times have changed. No one likes to be BOTHERED with calls or emails that do not give them information! Use of electronic signatures is not a new concept, but so few REALTORS even know about it! Saving time, and money is the key for everyone, not just the client! Today’s newer agents know more about the CHANGES in Real Estate than the ones who have been doing it for YEARS, and think they know it all based on past success. We will see who ends up MAKING a living in the NEW REAL ESTATE MARKET!
Matt Cooper
Posted at 18:29h, 11 AugustHi Jay,
Not only do I agree with what you are saying, I think that its absolutely mandatory that the Real Estate industry stop thinking about how to protect their data, and start thinking about new and innovative ways to add value to working with a REALTOR.
If over 80% of buyers use the internet as the primary tool when looking for a new home and sellers have the ability to search using the very same tools we do, its more important now than ever to make sure exposure is at the forefront of our strategy.
http://www.easylistings.ca is our answer to a slow moving, narrow minded Real Estate Association. Stay Tuned!
Thanks for the great Blog!
Dave B
Posted at 10:06h, 07 JanuaryAgents are still around because they’ve managed to scare sellers and buyers into thinking they can’t do it all on their own.
The internet should have been the death of the real estate agent long ago.
Agents just run an MLS report for you before they take you out to look. They’re just filling out a form to generate their report. So when looking for homes, Real Estate agents are unnecessary. They might have some ‘inside’ information about a handful of units in a particular area, but just how much is that info worth? Essentially you are paying for easy access to looking for homes (via those little doorhandle key locks).
Agents might have a fair amount of experience selling homes, but I honestly don’t think that their experience is worth 3-5% of the price of a home. It can be nice to have agents show your home, saving you the hassle of arranging visits during the day, but are agents necessary for coordinating the sale once a buyer is identified? That is about 10-20 hours of work to do on your own. Hire a good real estate attorney for about 500 bucks, and he can do it all for you.
I don’t hate agents, they’re nice people, but if you’re looking to maximize your money on the buying or selling end, in 2008 America, a real estate agent is not a necessity expense.