Nov. 16, 2007: Real estate representation has never been about information brokerage
As I write this, the National Association of Realtors is holding its annual convention at the Venetian Hotel and Conference Center in Las Vegas. This year marks the 100th anniversary of the founding of the trade group, a cause for celebration.
But the NAR is also embroiled in a years-long anti-trust suit brought by the United States Department of Justice and the Federal Trade Commission. Real estate buyers and sellers are steadily migrating to the world-wide web as their primary communications medium, even as the housing market is suffering through an extended downturn in many parts of the country.
Of the challenges facing the NAR, perhaps the greatest is finding a path to relevance in the internet age. The group's own statistics demonstrate that a steadily increasing percentage of home buyers and sellers are conducting their search for real estate information and representation on the web.
This internet-focused client base can be significantly more tech-savvy than many Realtors, with agents constantly racing to catch up. At the same time, Realtors' presumed traditional value proposition, access to MLS listings, has been obviated by on-line MLS systems and nascent Realty.bots -- venture-capital-funded internet start-ups devoted to delivering real estate information.
In fact, truly valuable real estate representation has never been about information brokerage -- a fact both the Realtors and the Realty.bots seem to be slowly discovering.
The value a Realtor brings to a home seller is not the MLS listing, which is at best an administrative function. A skilled listing agent should advise sellers on pricing, preparation and presentation -- the factors that get skillfully-marketed homes sold when no other houses are selling.
The best advice a buyer's agent can provide to his or her clients comes not in a stack of MLS listings but in specific tactics to deploy during negotiations, inspections and throughout the escrow process.
Whether the NAR can sustain relevance into the twenty-first century remains to be seen. But, even though consumers may find expert real estate representation on the internet, it can only be delivered face-to-face.
Greg Swann is the designated broker for BloodhoundRealty.com, a full-service Metropolitan Phoenix real estate brokerage. This article originally appeared in the West Valley regional sections of the Arizona Republic.
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