The disappearing act seemed to take place while I nodded for a minute...
I found myself waking up to a world in which full service was replaced by self service. Which meant that I was pumping my own gas, checking out my own groceries, figuring out how to get the best deal on a car rental online or talking on a telephone to a computer which was pretending to be human.
As this transition transpired, the service person whose job it was to make my life just a tad easier was doing a rapid fade into black...
Seth Godin opined about this issue in a recent blog post. Where have all the agents gone? When was the last time you used a travel agent or employed the services of a stock broker to trade your individual stocks? As it became cheaper to do it yourself, more of us opted to save a few bucks. The strange thing about the disappearance was how many of these agents vanished without a trace...
That's why I wince inside when I ask a consumer who their agent was when they bought or sold a home and they can't remember who it was or which company they worked for.
Seth puts it like this:
Key point: anonymous agents are interchangeable and virtually worthless.Agents that don't do anything but help one side find the other side in a human approximation of Google aren't so helpful any more.
I think he may be referring to people like us...
Real Estate agents are the middleman in the real estate transaction. We help people move from here...to there. But if we intend to continue to ply our trade in the years ahead, we will be required to provide much more than that important but easily replaceable service.
We must ask ourselves some crucial questions:
1. What are we doing to build trust?
2. How can our services transform the experience for the consumer?
3. How can we engage the client in a more meaningful way...beyond the nuts & bolts of real estate
4. Who will we choose to serve? Why? How?
Yes, it's an entirely different paradigm, but nonetheless a necessary shift if we don't want to become a mere blip in the future 'home search' process.
P.S. While you're thinking...what are your thoughts about what will have to be done to keep agents in the center of tomorrow's real estate transaction?
Picture is courtesy of Pink Sherbert Photography 'D Sharon Pruitt' on Flickr via creative commons license.
Copyright 2009 Audu Real Estate All Rights Reserved
Lola Audu, is the Designated Broker & Owner of Audu Real Estate. Our company specializes in helping people buy and sell homes in the greater Grand Rapids, West Michigan area. We've had the privilege of helping hundreds of clients succeed in their goals of purchasing and selling property including demonstrated success in the negotiation of Short Sale Transactions. You can contact us via e-mail @ info@auduhomes.com or by phone at 616-791-0511.
Lola it might not be as much of different paradigm as one might think. The Internet could easily replace us just like it did the others, if we stop demonstrating our value to Buyers and take them for granted.
I'm a Gen Y and I am definately a DIY gal. I also value good service when I see it. I'm just not interested in mediocre. I think there is always a place for excellence in any profession.
I do think that there will be a serious thinning of real estate agents and that whoever is left will regroup, hopefully, into a smaller but more professional core group.
George, you're right...when you sit down to think about it, much of the real estate process can be handled online. Even the search process is pretty automated. Mediocrity has never been a great selling proposition and only works when there are few options. I see this as an enormous opportunity to differentiate in service, style and value offered. If all of us do pretty much the same thing...then there will be a rapidly dimishing need for most of us IMHO.
Melina, thanks for peering into the future & stopping here to comment tonight. Excellence will always be in demand. It's the huge middle ground of mediocrity which is in danger of dissolving...
The more I think about "us" - the more I wondered how I ever bought my first home without a realtor's representing my best intest? Of course I'm biased today because I'm one. But I also know a value of not having one.
The way I look at our job is: to facilitate a real estate transaction.
All the mumbo jumbo about how we make real connections are real and valid, I dont ever want to discount that because I believe in them. But ultimately, our first goal is still to facilitate their real estate transaction.
I used to think I'm smarter than everyone else and I can do it better than anyone else can. Oh boy, was I wrong and I had to admit that. I think humility in my thoughts, mind, body and soul can go a long way.
I guess the fundamental question is this: are we BETTER OFF without the customer service??? In some ways yes, in others no. There are some things I think should be left to the pros. Although I have a small Ameritrade account, I do use an investment advisor and pay for the privilidge. Often people tell me I'm wasting my money. But in the recent downturn, the portfolio I had built up went down far LESS than my pals who were going it alone. I am conservative with investments- and except for 10% of my funds, I leave it to the pros. In a market meltdown - it can save your ass. Sometimes you hire the pros for UNLIKELY scenarios. But I've seen enough of those scenarios in real estate over the past few years to realize that we are indeed needed.
Now could we apply this same principle to car salesmen=agents in their way, the middle man. I think I could live with that. I have to think about this some more from the real estate side. ~Rita
Hi Lola - Very thought-provoking post. I think we are different from those disappearing agents in that the product we deliver is both tangible and intangible. The tangible part is not a commodity like a share of stock or an airline ticket that has a specific price and fills a specific need. We are working with people who are seeking to purchase homes. And, we certainly know that no two are alike even in tracts of houses. Some have eastern exposure, some back to busy streets, some are shopworn, some are a dream come true. Our job is to help find people houses that fit. As long as the human element and the fact that the product has many variable, I believe we'll still be in business.
I think we have ourselves to blame. Years ago, we were searching online for our own auto financing online, and comparing with dealership and bank financing. Now it's hit or miss, whether or not we go with the dealership. Just one example, but we all want to do things ourselves.
Lola
I am still trying to figure out why I pay for water and air at a gas station. I never thought I would see this day
Sincerely
Tom Braatz
LOLA- I loved this post- you have hit it straight on the mark. Gone are the dys when walk in traffic on Main Street was the meat and potatoes of your business.
Quite a bit of food for thought Lola.
I have always tried to conduct myself as being an essential part of a home buyer (or sellers) experience. Little things make such a difference to people and can help relieve the stress levels: Taking the property transfer affadavit to the city/township offices for them, welcome packages full of information from the city that they are moving to, being there for every part of their transaction, keeping in touch after closing, etc.
My referall base is my bread and butter and the people I have worked with before are treasures to me. I do believe they know they can call anytime with a question or help, whether it is a week after closing or years afterwards.
Maybe my head is in the sand, but I believe that if we keep the personal in the personal service and do all we can do to stand out then our occupation will not be in jeopardy.
We are the middlemen....so to speak....but I do not (refuse to) see us replaced as it IS the difference between walking them step by step rather than them figure it out. Bottom line....they DO call when they figure out they cannot do it alone....there is just too much involved with a transaction rather than buying a ticket to come to Hawaii :)
Great
Loreena, you know I bought my first home without a real estate broker too. Never thought I'd be one someday! Would I do it again? No. And here's why. We found that although we'd bought a beautiful home, it was in a declining area and we lost equity at a time when most areas would have gained in value. Although it was a pretty amicable situation as far as FSBO purchases go...over time, we would have saved money in knowledge and experience by using a broker even after paying their fees.
Ruthmarie...This statement caught my attention in your comment: "sometimes you hire professionals for UNLIKELY scenarios.''
That's huge. Because when your life or investment is on the line, you don't want a novice or to find yourself being a guinea pig. Which is the problem with the system as it stands right now in our industry. As a consumer, it's not easy to determine WHO exactly you're dealing with when you enter into a real estate transaction. That's not good for our profession. It does make a difference WHO you hire...With the chaos in the markets, perhaps even more so now!
What types of unlikely scenarios might be pertinent for the real estate process from your perspective?
Kenna...if we're like 'used car salespersons' why would the consumer need to use us? I'd prefer to buy from an honest owner directly. The problem is that sometimes owners are not honest and sometimes they don't know much about their vehicles.
I had the good fortune of running into an excellent used car salesperson about 10 years ago. We bought several cars from him. The reasons: he was honest, he followed through on what he said, he knew about the inner workings of cars and he kept in touch.
Marlene...great points, but could it not be argued that travel agents provided a significant intangible element in their services by providing the client with a memorable and well organized vacation experience? And yet they disappeared when it was cheaper to create the experience without them?
Lisa, the tricky thing about this 'do it yourself' experience is that there's a huge learning curve and one sometimes makes mistakes that are really costly in terms of time and money. This is something which a good professional can help you avoid. I'm willing to pay for that if I'm convinced the professional really knows what they're doing. Aren't you?
LOL Tom...When you figure it out, let me know. :)
Allison...you're right about that! But, that's probably a good thing in some ways. It's forcing real estate agents to 'up their game.' There are few professions which come to mind where we would willingly choose to pay money for a service and then gamble with the selection of who delivered the service. Consumers simply want to know exactly what they're getting when they hire us so they can make an informed decision about what they're paying for. Thanks for highlighting this discussion in your group.
Kris...I'm reading your comments and thinking YEA...she gets it! What you're describing is what makes the experience with you different. The personalized service options which you provide. They are things which not every agent does. What Seth Godin is saying is that the future welfare of real estate agents depends on our ability to be distinctive and/or exceptional. Middle of the road mediocrity will not be something the consumer will willing fork out thousands of dollars for. Can we blame them?
Sally, but what happens if in the future a program is created which guides the client step by step through the process and works...even in Hawaii?
Think about this...today, you can download a purchase agreement and most documents to support the buying process, you can research the hiring of contractors including the home inspector online, you can get several quotes and comparison shop for your mortgage or title services and you can zillow your home value or order a Free CMA from an agent hoping to get your business from Homegain.
But the big question is this...WHAT can't you do or would prefer not to do that you'd be willing to pay someone to do for you? And WHY?
Agents who create an irresistable value proposition in answer to those questions won't just survive...they'll thrive IMHO. Your thoughts...
Arlene...Great?
I think the commodity of real estate is quite different than an airline ticket, or production automobile I don't see us moving out of the middle of the transaction unless we do as George says and we start taking our clients for granted and they find it easier to avoid us.
Terry...so what are your thoughts about services like Craigslist and Zillow which seek to facilitate direct transactions between buyers and sellers online? I think Seth's point is that the role of the agent (in a variety or professions) is being re-defined in a business climate which has automated so many of the functions agents used to perform.
I'm also struck by what he points out about the impact of transparency. agents were under far less scrutiny in the past. Now, not only is the transaction itself better understood, but the particular agents abilities can be researched in a variety of online forums. It's not so much about us...as it is about them & their perception of our value in the transaction.
As Humans, I think we all hate middlemen. We see them as a barrier to get the info we are searching. How much is a billboard in your town?....Talk to the sales person. How much is insurance for my family of 5?....talk to the agent. How much for the 2007 Lexus?......Talk to the salesman.
As a Gen-X'er I want the info and want it quick. I can see the need for our industry to change as the consumers are changing. Transparency will be required and be the change that we all needed. To stick around we will need skills and experience to consult our clients.
Lola, you bring up some really good points. I have been both a Realtor and a new home salesperson. I believe that Realtors bring a lot to the table in terms of representing the buyer. The agent has the best interest of the buyer in mind and the experience to guide them through the home buying process while avoiding the land mines. For example, the professionals you choose to refer to buyers (inspector, title, mortgage, etc.) should only be good and honest professionals or you would not continue to work with them. Would you really pick a mortgage broker out of the yellow pages or trust a referral? I agree that hard working agents who show the value of their services will stay in demand.
I don't like to hear Realtors compared to travel agents any more than I like to hear us compared to doctors. And I hear us compared to both. We are neither. A real estate transaction is a lot more complicated than planning a trip, but it's not brain surgery either. I would consider saving money on a trip and as a consumer, on a real estate transaction (the house I'm living in was a FSBO - I saved money - I did use a Realtor - me). I wouldn't consider bargin shopping brain surgery - though I did go to a cheaper dentist for a cap a few years ago.
Dont' get me wrong, I think we are worth every dime we are paid and more. That FSBO I bought my house from would have made more money if they had hired me to list their house instead of running a FSBO ad in the paper for a crazy low price. It is up to us individually, every time to convey our worth to the consumer. That is why a good Realtor get lots of referrals.
Lola, this is a great topic. I believe the reports of the demise of real estate agents/broker role is premature. Everyone thought travel agents would go away when the Internet took off. Sure, they struggled for awhile, but most travel agents shifted to corporate accounts or higher-end travel services and they survived.
One company to look at that's invading the realtor territory - Redfin. www.redfin.com.
Here's an interesting comment by a professor at UC San Diego: "The Real Estate industry is in a transition from paper-based deals to online-based ones - a transformation that could take 10 to 20 years to complete." - Norm Miller, UCSD School of Real Estate. So, even if the real estate 'middle man' role is changing, it won't go away soon.
Of course, as a data provide for the real estate industry, DataQuick believes real estate agents armed with information provide a definite advantage to buyers and sellers!
Lola, being new to real estate and also being on the buying and selling end of things, I've also asked myself this question...
With more and more "Self service" firms popping up that allow the seller to list their property on the MLS service and provide various advertising packages, I wonder how many more people will start moving towards thinking they are better off trying to handle the transaction on their own (whether it be the buyer or seller).
The seller has the ability to advertise and it seems they are thinking more and more that they can do as good or better than a licensed REALTOR (or agent). Also with so much being available via the internet, the buyer feels they can easily look at the properties they want without involving an agent that will represent their best interests. I think REALTORS have been getting a bad wrap and it's starting to sway some to go it alone (before I became licensed I felt the same way).
We need to figure out how to let them know we have their best interests at heart and we are worth the money they invest in trusting us to help them through their transaction. Just my .02
~Chanda
(LOL) I am sorry I missed Tom Braatz's comment in March on why he is still trying to figure out why we pay for water and air at the gas station. I have been wandering that same thing. Especially after watching the Today Show one morning and they were saying the water we buy isn't so pure after all.
Shulorn Jeter