The latest real estate curve ball: ‘Coming Soon’ listings present opportunity

It's up to the good apples in the industry to lead by example and put their clients first

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Take a deep real estate technology dive, Aug 7, 2017

Unless you’ve been living under a rock (or in front of a television watching World Cup), you’ve most likely heard about Zillow’s new “Coming Soon” feature and/or that Trulia is reportedly in talks to purchase operator Move Inc. Critics and proponents have made their voices heard wherever they can as we find ourselves in what has become the new norm for this industry.

Major initiatives are rumoured or announced, and depending on whom you ask, it’s a blessing or a curse. It’s the hot topic before things cool down and we move on to discuss the next new amazing tool for consumers/assault on the fabric of the real estate industry.

Change is inevitable image via Shutterstock.

Are the end times upon us? No. It boils down to one constant — change — and one universal truth: Most people don’t like change.

The good old days

Remember when things were simpler? No tweets, Pinterest boards, electronic signatures, IDX, Trulia, mobile or tablet worries, Zillow — just real estate agents, their book of listings, a trusted base of clients, door knocking, cold calling the phone book, and placing classified ads in newspapers?

(A note to younger agents — yes, people used to advertise real estate properties in the classified section of newspapers. By the way, a newspaper are those things you find on the floor of the subway or occasionally what you’ll be served fries in at an Irish pub.)

To listen to some, this was a time of peace and tranquility. Sellers always got the highest and best price for their property; buyers were always treated with respect and secured the optimal property for themselves; and, above all, real estate agents always put the needs of those clients first. However, as is often the case, nostalgia has polished up those rough edges.

To paraphrase Red in “The Shawshank Redemption,” “I wish I could tell you that real estate buyers and sellers fought the good fight, and the real estate agents let them be. I wish I could tell you that, but real estate is no fairy-tale world.” Wherever there are human beings, there will be human beings falling victim to the temptations of greed, self-interest, pride and the like. There are agents who do business ethically and professionally, and there are others who have chosen otherwise.

Yes, we as professionals need to do a much better job improving the state of the real estate industry and the professionalism of those who work within it. Yes, many bad apples are out there spoiling the bunch. However, as business changes and local MLS systems become regional MLS systems, the licensing process remains stagnant. Prospective agents enroll in a course, receive a book roughly the size of “War and Peace,” and then spend the next year learning how to calculate mortgages and not find themselves in a lawsuit — unless they pay extra for an accelerated course where they do all of that in six to eight weeks.

What these new agents do not usually learn is how to be a professional real estate agent. A test is prepped for, passed, and they’re off to find a brokerage. In an industry where it’s commonplace to find 20-30 percent of agents within a local board of real estate who do not sell a single property in a year — all the while continuing to pay board and MLS fees — do you expect the licensing standards to be raised, reducing that income? Of course not. As a result, we at a brand/brokerage/agent level are in charge of our destinies, and it is up to the good apples to do all they can to lead by example and be able to communicate their value proposition effectively.

The real estate revolution

Over the last 10-15 years, the overriding direction of the real estate client/agent relationship has reflected the changes that technology has brought to civilization in general — the empowerment of consumers in the information age. Real estate is often the most expensive investment a person will make in their lifetime, so it stands to reason that clients will want to do their due diligence, as well as benefit from your advice and expertise. I would propose that pop culture has fanned those flames, as the television landscape is littered with shows where the objective is to find the best deal, secure the biggest profit when you flip the property or to find the diamond in the rough.