Technology will never replace agents
Letter to the Editor
By Inman News, Friday, February 19, 2010.Re: 'I can be replaced' (Feb. 17)
Dear Editor:
While technological advancement should be embraced, it will never replace human intervention. Were that not true, there would be no need for judges, bankers, lawyers or politicians. Well ... maybe mechanical replacement is not all bad.
That aside, machines and technology will never be able to consult, identifying the true motivation for buying or selling or determining the proper strategy for maximizing return, both monetary and psychological.
To the extent agents see themselves as portable MLSs or databases, they diminish their real job, which is putting a face on everything real. Home, like family, is mostly heart, not just mind.
If we become androids, then the projected replacement scenario is certain, but as long as human whim and concern exists, as long as there is still freedom of choice, clients still need Realtors.
Steve Sanders
Broker
Pacific Shield Realty
Irvine, Calif.
***
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Submitted by Edward Toomey on February 19, 2010 - 1:31pm.
"Technology will never replace the Agent however the Agent who uses technology will replace the Agent who does not"
Submitted by Ray Wood on February 21, 2010 - 12:57am.
Never say never...
The reason Agents are needed is because houses are unique and personal. The decision process the buyer goes through is complex.
But houses change and so do the people that buy them. Right now we are undergoing a major shift in demographics in our country. Retiring boomers need to sell large expensive homes to 35-50 year-olds who either don't want them or can't afford them.
Builders are changing their products to suit the new requirements of singles and couples without kids. Large immigrant families that need large homes can't afford them nor the commute to the suburbs in which the large cheaper homes are located.
This kind of change could eventually lead to a simplification of the product (the house) or the process of buying it. Then housing becomes a commodity.
You don't need high-priced sales people to sell commodities. You just need a clerk to take the buyer's money and sack it up.
Ray Wood
Assoc. Broker, ePro
Prudential Jack White-Vista Real Estate
Wasilla, AK
Submitted by Marilyn Harra Kaye on February 24, 2010 - 11:42pm.
How Impoertant is a phone in technology? Technology will not replace the real estate broker or sales associate but the importance of education in all aspects of real estate is a must. You must know technology, trends, the real estate product, locations, financing, up and coming new locations, bank rates, whether a seller will take financing or perhaps the negotiability of the real estate. The list goes on and on and as employment is at an all time low, the consumer will have to lower their sights and even though prices are still coming down,in Manhattan, many apartments are out of reach for the average consumer. If your broker is creative with floor plans, this too will be an asset as many times more space can be utilized in a better fashion. In Manhattan, with co-operative apartments, the boards have become more difficult, not easier as each buyer has shares in the corporation and if they default, everyone in the building must make up the difference in maintenance. There is a mortgage on the building in a co-operative and each buyer pays their share depending on how many shares they own, which usually has a correlation to size and amenities. In a condo, there is usually no mortgage and the buyer gets their own financing as if they were buying a house, in this case a house in the sky. While technology is great and saves time, the bottom line is the bank financing and while we will never see the fast loans of two to three years ago, the real estate economy will not return until the pendulum swings back to the middle and bank financing returns. You can have great technology and wonderful hand held phones that do tripple jobs but if your broker does not know where to send you for a loan, it can be hopeless for a buyer particularly if they need financing. In this economy, the best technology could be the phone that your broker uses to make that important phone call to a bank or mortgage broker on your behalf. Yes, it might cost you a little more to pay a good mortgage broker but without the money, you will miss the values of real estate in the market with the new reductions in prices. The best technology in the world will not work, but a well placed call by your broker might just do the job and your new real estate acquisition will become a reality. So what is the answer today...any phone will do, make sure your broker is attentive and helps you with that very important call. Marilyn Harra Kaye, President, MLBKaye International Realty, NYC, NY
Submitted by Rob Aubrey on February 28, 2010 - 5:03am.
The pieces that are rarely talked about are negotiation and the emotional aspects of a real estate transaction.
Pros become masters of negotiation and being unattached.
Then let's talk about the way things change, financing and guidelines of today barely resemble those during the no skill market.
This notion of tech replacing agents was coming to a frenzy during the no skill market and the consumers were aware that skill was not necessary. That along with technology increasing all along, it was thought that technology was the reason. The no skill market is part of the cycle and it was the timing of the two.
The bigger changes are with brokerages.
15 years ago there weren't too many agents with computers and laser printers. Through economy of scales brokers had them. Before that it was the microfiche machines, printers and plat books.
So the real shift in revenue is from the broker to the agent.
Now the best thing a broker can do through economy of scales is provide high quality training.
The more training along with the different levels of training the more retention a broker can have.