The recent downturn in the real estate market has shattered the conventional wisdom of the marketplace. What has always worked is still working, but there are so many tools making inroads into the day to day life of a real estate agent.
This we can all agree upon.
So when I came upon this quote from a press release from ForSaleByOwner.com, I was interested. Read it then join me below:
- The Internet Becomes More Effective Than Agents in Helping Buyers Find Homes: According to the 2008 NAR Profile of Home Buyers and Sellers, 32% of buyers in 2008 said they first learned of the home they purchased by seeing it on the Internet, up from 29% in 2007, and from just 2% in 1997. In 2008, 34% of buyers said that they first learned of the home they purchased through a real estate agent, compared with 34% in 2007 and 50% in 1997. Prediction: In 2009 – for the first time — more buyers will find the home they purchase by seeing it first on the Internet rather than learning of it from a real estate agent.
Now it is spun to say, you do not need a real estate agent. And that is the copywriters job if he is working for ForSaleByOwner.com.
But I would differ.
The hard working real estate agent is becoming a more integral part of the equation in home sales. With limited buyers and plentiful sellers negotiation and following correct processes are more important than ever.
Buyers will find the home first on the internet, but what next. The savings they will have in negotiation price and a lower mortgage will more than cover any commission the agent gets.
Real Estate Agents Have More Value Than Ever.
Tough markets need agents to get deals through. In 2005 you did not need an agent to get a deal done in most parts of the country, today you do. Your ownership of the MLS made people fat, now the lean real estate agents are going to dominate the market.
But that is for another post.
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{ 15 comments… read them below or add one }
Thanks, Tom, for going beyond the simplistic idea that "finding" a house you want to buy is the first, and last, step to getting the keys and arranging the furniture.
I think that’s so true, I’ve talked about that a bit on my blog, how agents must start to embrace social media tools if they want to capitalize on their markets.
And re. your quote: “Real Estate Agents Have More Value Than Ever.” – you’re absolutely right IF they’re well versed in online marketing/social media. There is a big need for that these days.
I completely agree with Tom and Andrew. The agents that are going to survive and prosper are the agents that are technologically savvy and are constantly shaping their business to benefit their clients. If you want to be successful in today's market then you will have actually work for your client. The people who entered into this industry without a good work ethic and being technologically savvy will not last. Realtor's love telling their clients that real estate is a dynamic market and that if their house is to sell it must be better then all of the rest. Well, that mentality is the exact same for Realtors. The agents that are going to make it through this tough time will be the ones that are willing to change and be progressive.
I have worked for 5 years building an internet presence, I am excited to see that the internet trend is here to stay.
I am a new company in Thailand, we are striving to find our niche and looking at out competitors on the internet for Koh Samui, an exotic island and top 10 luxury destination. What is obvious is that those with a 1 to 5 ranking on the 1st page of google have a huge advantage. Clients do not window shop here to choose their selling agent, they research the market from their home base and then are fully prepared when they arrive.
Internet is the key to sale on Koh Samui Island, and we hope to prosper from a well thought out internet strategy, and top client service.
We by the way specialize in beach front and hillside villas in Koh Samui, Thailand.
I launched my first Las Vegas Real Estate website in 2001 and have never looked back. I have survived this real estate market because of my website and all the leads it generates each and every month. I have seen many top real estate agents suffer in this market as they never invested time and money in building out their web presence and now they are no longer enjoying the view at the top.
We will see a new wave of top real estate agents from across the country and it will be the ones that have a massive Internet presence!
The Internet is the first place more and more homebuyers are beginning their search for a home. According to a study done by the National Association of Realtors, 71% of homebuyers take their search online
It amazes me that some people focus so much on the commissions…in santa barbara we are talking about $20,000 here of there to represent one side yet the homes value is in the $800,000 to $1.2 Million price point. I do not understand focusing on "saving" this $20K by not using an agent and not focusing on the $90K that one just overpaid for the home by not understanding the whole process.
Unfortunately somewhere along the line too many bad agents joined the business and gave the industry a mixed reputation.
Thanks to this site: http://www.realtyclients.net
My company is moving into a second office next month. This system does the same as those other big giants but charge the fraction of the price. The best part about it, the first 30 days are free with no commitment there after. Check it out!
So many agents just buy a site and think it just going to change their business. "If they can't find your site they can't use it" having a site is just the first step to finding your Internet leads.
Augusta Real Estate
Totally agree, just buying a site is not gonna do it. There are sites on the web that specialize on lead generation and are doing pretty good job with it.
Here is one example that someone might find helpful:
http://www.homesforsale.net/
There are others but this one I have good feedback on.
In real estate business learning in never ending. Agents that are successful in the business are those who never stops learning and find ways to improve their business. Like now a days being internet savvy is really a big thing, research shows that more home buyers look for properties in the net.
I think its true that internet becomes more effective
in helping buyers find homes than agents. Especially now that people want instant reply and buyers go to internet first in finding properties than through agents.
Completely agree, the majority of buyers I know begin the search online and bring leads to agents. Sites such as google aggregate all listings in an area and make it very easy to search for listings. Explained here:
http://ideasforyourmoney.blogspot.com/2010/11/rea…
Even though buyers can search for homes on their own – we still require an agent to show us the property and to let us know/keep us aware of similar properties in the area.
I agree… although the internet makes it easier to find a home the purpose of a Realtor is needed just as much as it was in previous years since finding homes is definitely not the hardest part.