The Truth:

To suggest that since buyers online are able to educate themselves on the current housing inventory, therefore the agent is doing less and should be compensated less, is ludicrous.

While it is absolutely true that technology allows buyers to do a lot of the “winnowing down” of properties, this is NOT where the value of an experienced agent lies. A buyer agent’s value is not in finding the home, but in getting the best deal for their buyer-clients once it is found. Clearly, technology has saved agents from doing manual home searches and being the “gatekeeper” of information. Instead, the average agent today is spending more time than ever servicing their clients. Rather than doing manual searches and drive-bys of properties, today’s buyer agent is checking out tax records and digging into the history of homes that are of interest to the buyer.  Thirty years ago, it was “buyers beware,” but today it is “buyers be represented,” with the onus on the agent to make sure there are no “surprises”.

Think about the following scenario:

A friend of yours isn’t feeling well so they make an appointment with their doctor. In the time before the appointment, they go online and research all the diseases or maladies that possibly match their symptoms. Now, can you imagine them walking into the doctor’s office and announcing to their doctor that since they have done so much of the “legwork” of gathering information, the doctor’s job is lessened and therefore, the doctor should be paid less? Of course not! Your friend has honored themselves by becoming a more educated patient. And the treatment the doctor will prescribe may be easier for them because they may know what to expect. But they have in no way done their doctor’s job for them. That’s because a good physician’s value is not in gathering medical information, but in interpreting it and applying it to their individual patient’s needs.

In real estate, when a home buyer becomes educated about the real estate process and the types of homes that might fit their needs, what they actually have done is help their agent to help them. To imply, as this ad does, that consumers are doing the agent’s job for them is simply not valid. REALTORS® put in as many -- if not more -- hours into each and every transaction as they were ten years ago. Their time now is just spent differently.

By the way, while we’re on the subject, all this great technology not only fails to save a good agent any net time on a transaction, but it has greatly driven up the average agent’s expenses. Who do you think pays for these online property search services that are taken advantage of by consumers? They are paid for by the agents who offer them for FREE in hopes of attracting more prospects. What used to be a cutting edge application that would set an agent apart, has today become just another required expense. And as real estate companies are squeezed financially, more and more of these “costs of doing business” are being passed on to the agent themselves.

One more word to the wise on ads such as the previous one: you can be sure that agents willing to hand back 25% of their compensation on a transaction that is still contingent on the sale will not be the seasoned pros that will hammer out the best deal for buyers. A quality agent knows that they are giving the consumer good value for their money – the quality of their negotiations and troubleshooting of the transaction makes that abundantly clear. An agent willing to hand back a quarter of their income is essentially saying “My services are overpriced for what I will give you so I will give you a rebate.”

The correction of these misleading ads brought to you by: The Home Consultants Team

Accredited Consultant in Real Estate™

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