I saw this comment on a post about an Internet "Listing Site":
"If "listings" are so quickly distibuted to the "mega" sites in order to gain maximum seller exposure, why do we charge the seller anything, when they can do it theselves?"
I responded, and then thougt it might provoke some good discussions. Hence the comment becomes a blog post... (What is the word for that?)
My response was:
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Hopefully a good real estate agent does FAR more than put a home in the MLS, or any other site.
Can the seller complete a legally binding contract for themselves?
Can the seller distinguish one offer from another? (the highest price offer isn't always the strongest)
Does the seller understand how to get their home ready for showings?
Does the seller comprehend all the figures on the HUD-1?
Can the seller effectively negotiate with the buyer to maximize their position?
Does the seller understand the required disclosures?
When the deal is spiraling out of control due to inspections, lenders, buyers remorse and a plethora of other things that can go wrong, can the seller right the ship and get the deal closed?
I could go on and on, and on.
Agents do (or should do) MUCH more than input a listing. In fact, that's pretty much the most insignificant thing we do (or should do).
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I'm not trying to pick on the commenter. They asked a question I hear *all the time*. But to be perfectly honest, I don't understand it. Is our job simply to put a listing in the MLS and hope another agent stumbles across it and sells it? As I said in my response, inputting the listing into the MLS (or any web site) is the easy part of this job. If that's all it entailed, then the commenter is right, the seller could just do it themselves.
I have no doubt the commenter understands completely what agents do. Their point was, I believe, intended to say that "Opening" the MLS, and/or making listing information widely available to the public diminishes the usefulness of agents. (And maybe even the need for agents at all). There's a $100 word for this -- disintermediation.
Personally, I couldn't disagree more. This is the information age, like it or not. The Internet isn't going away.
Here's an analogy we've probably all heard some variation of before, and it's a true story for me that happened last week... I hurt my knee playing racquetball. I go to Google, and begin to search about my symptoms. LOTS of info out there on knee problems. About an hour later, I'm pretty certain I've torn my meniscus (the part of the knee joint that acts as a cushion and pivot point). My medical detective work tells me I'll probably need surgery. So I go to the doctor, he takes the history, pokes, prods and manipulates my knee. You know what he says? "You've probably torn the meniscus and will need surgery."
I knew that. Guess I didn't need the doctor. Do I need the surgeon? Nah, I can read about, and view videos of the surgery, on the internet too.
The free and open delivery of information, including homes available for sale, doesn't diminish the need for real estate agents, just like it doesn't diminish the need for doctors and surgeons. If anything, it INCREASES the need. There is so much more to buying and selling real estate than finding the home. That's the easy part. It's what comes next that is the hard part, and that is how we earn our living.
Thoughts?
Listing agents are worth their weight in gold.
Buyers agents are worth their weight in gold.
Together, we make real estate one of the largest industry contributors to the national economy and considering we're dealing with buyers' and sellers' largest single asset, we do a fantastic job to protect their interests and keep this process going. Most of us do it without any input from the legal profession prior to settlement, and more importantly, after.
We charge because we produce. We should all have a lot of satisfaction in the job we do.
Lenn
Great post! We are experts in the field. Maybe they will be able to market their homes more effectively with an open MLS and the big bad internet - BUT -
My dear father who has been selling real estate since 1978 says it best.
"I don't earn my money putting your house in the MLS. I earn it getting you from an offer to contract to closing."
I've bookmarked this as I really feel that this post and the comments will be very valuable. Great points and very thought provoking.
Lenn, Renee, Sharon, Leigh, Monika - thanks for chiming in.
Tony - you crack me up.
It never ceases to amaze me how many agents out there fear the internet, fear that it will somehow replace them.
It doesn't surprise me though how many here "get it". After all, I suspect any agent tech-aware enough to be on AR is tech-aware enough to USE the internet to further their business.