This is a sweet one from my Arizona Republic column:
“Save thousands buying surgery online!”
It may be a while before you see this headline. But you can’t open a magazine or a Web site lately without hearing that Realtors are about to be “disintermediated” by the Internet.
“Disintermediation” is a 50-cent word that means cutting out the middleman. It has happened at the low end of the travel agency and the stock brokerage businesses, among others. Some Internet start-ups plan to automate or streamline the functions performed by Realtors, in anticipation of the glorious day when you will sell one home and buy another online.
There are problems with this idea. For example, although the book-selling business allegedly has been disintermediated, you will have plenty of time to read about that as you bide your time in the checkout line at Borders or Barnes & Noble.
Then there are these considerations: Would you say that a Realtor is more like a sales clerk at Target or Wal-Mart or more like a surgeon?
Is your home, or the one you hope to buy, more like a DVD at Best Buy or Fry’s Electronics or more like a unique work of art?
I’m not sure this column is holding up that well. I can’t imagine buying a house as though it were buying a book at Amazon, but I have sold plenty of houses that the buyers have never seen.
In the first instance, we are taking note of the consultative expertise of Realtors, full-time professionals who know how to market homes and how to effect transactions against a sea of troubles. Surely some Realtors are better than others, but it would take a pretty lousy surgeon to be worse at surgery than an amateur.
In the second instance, we are talking about the idea of fungibility — substituting one item for another with no concern for differences in value. DVDs are highly fungible, as are books, items of apparel, travel arrangements or shares of stock.
I’ve read that radiological diagnostic work is being farmed out by broadband to India. This is a very interesting time to be in the real estate business…
Technorati Tags: blogging, disintermediation, sellsius 101, real estate, real estate marketing
jf.sellsius says:
Real estate is not fungible or number crunchible.
September 26, 2006 — 2:04 pm
Greg Swann says:
> Real estate is not fungible or number crunchible.
The thing is, in this market, I can pick a better rental home for you than you can pick for yourself. Even if all other factors are essentially equal, the home I pick will have a lower vacancy rate. No one can buy real estate like buying a DVD, but your flying out here to pick out a rental home is probably a worse idea than letting me pick one for you by remote control.
September 30, 2006 — 3:26 pm