Settlement may fuel more FSBOs

Re: 'Industry reacts to DOJ vs. NAR settlement proposal' (May 28)

Dear Editor:

The settlement will, in my opinion, have little impact in the short run on the average real estate agent or broker. The vast majority of brokerages still rely on agent-generated business through sphere of influence, local advertising, client services, referrals and agent managed transactions from home listings or buyer tours to settlement. Their mission is real estate brokerage, not lead generation. The Internet-centric brokerage is the exception, not the rule. The Internet has not changed the business practices or business plans of most agents or broker in the 12 years that I've used Internet advertising.

However, I believe that the matter of consumer registration and verification of e-mail addresses may have a profound effect on the advertising methodology of companies that use a VOW. The requirement under the DOJ/NAR settlement, if successful, could change Internet advertising from "pull advertising" to "push advertising."

In the "post-Google" Internet world, search-engine optimization "pull advertising" differentiates successful and unsuccessful Internet advertisers. With the proposed VOW rules promising vastly more detailed information to consumers willing to provide a verifiable e-mail address, lead capture could lead to a significant number of brokers/agents who practice "push advertising."

For listing agents, more detailed sold, expired and withdrawn information could lead to more for-sale-by-owner attempts to avoid or negotiate listing fees. Home buyers today believe that the ability to see home listings on the Internet gives them the ability to "find their home" without the aid of buyer's agents. Detailed sold, etc. information on the VOW sites may give home sellers the belief that they can sell their home without the aid of listing agents.

Lenn Harley
Broker
Homefinders.com
Rockville, Md.

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