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Nick Segal

Nick Segal

Posted: March 9, 2011 12:55 PM

How Do Real Estate Brokerages Stay Relevant in the Digital Era?


In the very recent past, all big brokerage companies with recognizable brand names needed to promote their businesses were eye-catching statistics of their large "market share" and the billions of dollars worth of real estate that they have sold in the past.

But the Internet has changed things.

When searching for a new home, do you think more consumers visit traditional brokerage web sites or online searches such as through Yahoo! Real Estate or Realtor.com?

Overwhelmingly, buyers today rely on third-party search tools such as Yahoo! Real Estate, Realtor.com, Zillow, and Trulia far more than the closest traditional brokerage firm in the United States. Based on an independent research report for the National Real Estate Online Marketplace, within the top-20 ranked by visits for the month of December 2010, only Zip Realty with 2.08% (#6), RE/MAX with .97% (#16) and Century 21 with .79% (#18) were represented by brokerage firms.

And what percentage of buyers today are going online to start or support their search for homes? 85% to 90% of them.

When before home buyers would seek out the conventional brokerage -- whose strength lay in their vast inventory of properties they represent -- now they seek out resources that allow them to search every listing from any brokerage within their chosen search parameters -- whether that's local, national, or international in scope.

Interesting enough at this point is the fact that the most influential constituency yet to understand this logical evolution of buyers' demands are conventional sellers -- and they're the ones who need this awareness most of all.

It's my experience that when a seller interviews an agent, a critical component of the seller's decision-making process is knowing where and how the agent and broker plan to market their home to qualified buyers. I'd say this factor is right up there with "How much is my home worth?" and "How much do I need to pay you to sell it?"

As we proceed -- whether big or small -- all brokerage firms must accept the changes that are afoot and look for ways to foster unique value propositions designed to better serve our clients, including the harnessing of the Internet. We can't change the fact that consumers don't need us to show them the homes for sale in their market anymore; with a few clicks of the mouse, buyers can search for listings in their own neighborhood, on the other side of the country, or even across the globe.

What people can do when interviewing real estate agents and their brokerages, however, is to focus their attention on how they provide enhanced forms of service, feedback mechanisms, and insights of their negotiating and strategic acumen to better ensure that their agent and broker are earning their wage. That is how any brokerage will maintain their relevance and valuable place in the process of selling or purchasing a home.

 

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In the very recent past, all big brokerage companies with recognizable brand names needed to promote their businesses were eye-catching statistics of their large "market share" and the billions of dol...
In the very recent past, all big brokerage companies with recognizable brand names needed to promote their businesses were eye-catching statistics of their large "market share" and the billions of dol...
 
 
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02:04 PM on 03/16/2011
I find this process very refreshing and with no doubt the only ways of selling real estate or any other products are over. We need to do what ever it takes to expand our vessels to receive more. The ego driven what's in it for me way of thinking is simply over. Thanks Felecia Wesley for introducing me to this site
04:46 AM on 03/16/2011
Hi,
Lot of global tensions is going on at this time. Japan is expected to pull out its money from the global market as they want to revamp their country now. In current scenario anything can happen in the Share market Investors are advised not to panic and stay invested only safe traders and investors should exit their long positions on every high and one can use every decline as an opportunity to enter market again.
Regards
SHARETIPSINFO TEAM
05:31 PM on 03/14/2011
I find that home buyers are extremely sophisticated. Most have already done a ton of research before they even walk into an open house. I welcome that. But I also know that choosing a professional agent to assist in the process is priceless. Thank you for this post!
02:06 PM on 03/16/2011
I agree.
08:49 AM on 03/12/2011
I Googled "National Real Estate Online Marketplace" and could not find the organization or the report.
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Nick Segal
11:18 AM on 03/13/2011
The report came from a research firm called WAV. If you like, I can send it to you. Please give me an email address.
04:40 PM on 03/14/2011
Email: frankknott@yahoo.com

Thanks Nick
04:50 PM on 03/11/2011
Realtors that demonstrate integrity, patience, attention to detail, expert negotiating skills, and are able to articulate the protections in the contracts for both buyers and sellers are invaluable.
06:52 PM on 03/10/2011
Great article Nick, it is true it is not that easy and each transaction require it's own negotiating style and technique, so look for a broker that fits you and your style.
05:39 PM on 03/10/2011
Nick, I certainly agree that nothing can replace the role of the Realtor in the home buying and selling process. Though the process of searching for homes may be changing, there are certainly many other elements of the process that require a professional Realtor's expertise.

--Jill Kipnis, Community Builder @Realtor.com
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JScott
John Galt's last name is McGuffin-Smithee
10:28 AM on 03/10/2011
Yup and don't forget the MLS services online.

But often nothing beats actually driving around a neighborhood you want to live in and see a house that's CLEARLY unoccupied (for some time-foreclosures and repos and such) and usually for sale, and yet they try to find a listing and there is none.
06:46 PM on 03/09/2011
Fewer people in California and Maryland becoming real estate agents:
http://articles.baltimoresun.com/1998-09-13/business/1998256111_1_association-of-realtors-membership-maryland-association
http://lansner.ocregister.com/2010/09/16/fewer-seeking-to-become-real-estate-agents/81576/

What I want to know, though, is if the profusion of internet real estate blogs like Redfin, Dr. Housing Bubble and Patrick.net have made things much more stressful for realtors since people now seem to trust agents as much as they trust lawyers---that is, not much at all---and coupled with a declining real estate market where a large majority of the sales are foreclosures, short sales and cash acquisitions, if this all combines to encourage agents to walk away.
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Nick Segal
10:17 PM on 03/09/2011
Appreciate your comments. Perhaps it's time to weed out those who think becoming a Realtor is "easy". Agents who understand and demonstrate their value are invaluable in the process of representing buyers and sellers. The cream rises to the top and true professionals are facilitating those who want to own a home. If that means fewer agents that taint the reputation of our profession, so much the better.
02:52 PM on 03/09/2011
Nick,
Excellent perspective on what's going on with Brokerage today. John Q. Public is taking matters into his own hands and the role and required skills and experience of the broker is changing.
Richard