For many decades, brokers were the gatekeepers through which all housing information passed; they had a monopoly via the closed-wall MLS system. Once the interlopers built their siegeworks and penetrated the housing data wall, less than a decade later they are the gatekeepers to more valuable information: homebuyer and seller leads. If brokers do not radically change their business model, they will become sub-contractors to the portals and other outside companies. Standard IDX style, “for sale” and “sold” information and even automated valuations are ubiquitous, and therefore unable to differentiate one broker from another. Buying third-party automated valuations and IDX data for publication on your site is now simply a fixed cost of business with no return on investment that can be measured in gaining buyer or seller leads. How the first wall fell Automated valuations propelled Zillow to prominence because it was the first platform to offer this information, ...
- Two of four broker fortress walls have fallen: automatic valuations and automatic home search.
- The third wall, hyperlocal dominance, is at risk without immediate action.
- A new Tech Broker Model (TBM) utilizing efficiencies, automation and cost savings must be implemented.