Every other year, the National Association of Realtors (NAR) publishes its statistical findings from the year prior. One of those reports is the Profile of Home Buyers and Sellers. The publication reports buying and selling trends in real estate as well as other influencers affecting the market. One stat I find especially interesting every two years is how buyers actually found the home they bought.
In the latest edition, print media was dead last. That’s no surprise to anyone. The overall effectiveness of signs has wavered somewhat as well. But at the top of the list is the internet with half the total. Just below that, with 28% was the real estate agent. What the report does not take into account is how many of those online views are from a public version of a Multiple Listing Service (MLS) or an agent’s website.
I remember over a dozen years ago, those top two numbers were flipped! Back then, several real estate experts were concerned that the internet was going to be the end of their profession. Without a Realtor to help buyers locate a suitable home, the industry would just shrivel up. “After all, if they don’t need us to find a home, what do they NEED US for?”
Decades ago, the general public assumed the most important thing an agent did was help locate a home. Why the experts gave in to that way of thinking is beyond me. Unless you are in a very rural area, it’s not about helping clients FIND a home but rather to GET a home. Realtors do so much behind the scenes to make a family’s dream a reality. And there is the problem… it’s too much behind the scenes. We need to better inform our people of the actions we take to work for them. Otherwise, they assume we did nothing, especially when they locate the house. No one considers a material defect or liability issue until they have one.
And now the industry is ringing its hands again anxious that an online retailer is going to get in the act. How will this change the industry dynamics? Even Zillow is worried about it! Relax… it’s not day trading, it’s real estate. Abraham Lincoln once stated; “A lawyer’s time and advice is his stock and trade.” The same is correct for real estate agents. A seasoned expert has been around the block a few times and knows how to guide her clients. Great attention to detail must be given for a house to close. The type of attention given by a local individual, not a website and customer service pods half way around the world.
I recall about fifteen years ago, there was a large retail chain looking to get into the realty business. The idea was to have kiosks set up in their stores where customers could browse listings of properties in the area. They would sit down with a store clerk and simply “put in the order.” There were even a few pilot programs to test the waters. In the end, the mega retailer dropped the project. It was just too much of a hassle.