Do Buyers and Sellers Really Want LESS Service?

In today's Inman News there's an article about RealUmbrella.com. According to the article, Realtors "are being re-purposed for tomorrow. Stand by for the real estate market shakeup."

Granted, a proportion of the market will always purchase based upon price/commission. Nevertheless, we have just come off the best real estate market in history. What's fascinating, however, is that the number of For-Sale-By-Owners that listed with an agent increased during this amazing market from 84 percent in the early 1990's to approximately 87 percent in 2006.

The fallacy that permeated the market over the last few years was that advertising a property is the same as marketing a property. These two functions are very different. The challenge that today's slowing market poses is that there are so many listings out there, how will one particular seller stand out in an ocean of foreclosures, new homes, and other desperate sellers? This is where a strong agent who understands marketing, not just advertising, will make a tremendous difference.

A strong market means more FSBOs and more downward pressure on commissions. In a buyer's market, home builders, lenders, and people who absolutely must sell will raise commissions to garner the attention of the brokers who actually have buyers. This is a market where Sellers need MORE service--not less.

As I travel across the country, I hear the same theme. The top agents who provide stellar service and have stellar skills are doing great. Those who lack the skills or do not provide the service are being forced out of the business.

Bottom line--there's a shake up going on--in fact it's an earthquake. Sellers and buyers expect their agents to use the latest technology tools, provide the utmost of service, and have the negotiation skills to handle mortgage rate increases, jittery buyers, and a host of other problems. In my opinion, advertising alone is no longer enough.

Posted by Bernice Ross

Photo by D'Arcy Norman

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