Why Real Estate Agents Have Good Reason To Fear The Web

from the marginally-useful dept

There have been a number of stories lately about real estate professionals lashing out against online real estate services like Zillow and RedFin, which are seen as threats to their traditional business. A new study done by two economics professors sheds some light on why they might be feeling embattled. In an examination of the housing market in Madison, Wisc., the pair found that homes sold using brokers did not fetch sellers any additional profits after commissions were taken out. What makes Madison interesting is that it has a thriving website of for-sale-by-owner homes, so sellers there don't have to do much legwork if they want to sell on their own. This means that real estate agents may still add value in communities where such services aren't popular, but it's value that could disappear as services like RedFin startt to take hold. Thus the agents' fear seems to have a legitimate basis, and their behavior conforms nicely to the rent-seeking tactics exemplified by similarly organized professional groups.

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  1. identicon
    Connie, 10 Jun 2007 @ 8:24pm

    A good consumer will research thier Surgeon before they go under the knife. They will background check an Oral Surgeon before they have Laser Eye Surgery. I think most bad experiences are because the consumer fails to interview and really get to know the person they will let represent them while making one of the biggest investments in thier life. I always suggest to my clients that they get to know me and know that I am a good fit for them. I work with them as a team, I'm not dominating anything, and I care a lot about each and every one of my clients. Think about how many times you go to the same banker because they balance your checkbook perfectly or the babysitter that you always call because he/she takes such great care of your kids. When I meet a client that is the kind of thing that dives me to be great.

    I also don't see the HUGE paycheck for very little work perspective. I average the same salary as when I was in the working world and I work double the hours. I work hard for all of my clients. There are a lot of success stories about people selling thier house on thier own and I applaude those people. But, I promise there are some real horror stories from a lot of people that were saved by a good Realtor that really cared about the client.

    It really hurts when Realtors are called cheats and unethical when there are a lot of us out there that do care and provide a great service that surpasses all expectations. These days, providing great customer service is worth every penny. That is my opinion, take it as you will.

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