No one will argue that the Internet has changed the way that consumers do business. The free flow of information has dramatically affected the way that properties are exposed to the buying public, as well as a plethora of advice about the nuts and bolts of a real estate transaction.
Anyone can sell their own property. They always could, there's nothing new about that. But there is one reality that will never change and that is this:
People often pay to have something done that they could do themselves.
There are many times when it is more efficient, convenient, or even cost-effective to hire someone else to do a task or perform a function that an individual is perfectly capable of doing. We all do this every day. For example:
I know their way around the kitchen. Most would say that I'm an above average cook. But I still go to a restaurant often and have someone else do the work for me. It's very convenient.
I did my own bookkeeping and income tax returns for over thirty years. Now I use the services of a CPA. In addition to being convenient and more efficient, it's also cost-effective because he saves me money by doing the job correctly every time.
I am perfectly capable of mowing my own lawn. I have all of the tools of the trade. But my time is better spent doing the things that I do best, which are marketing and real estate sales. So I hired a lawn service.
I once had an HVAC license and pretty much know everything about how furnaces and air conditioners operate. Yet I have a processional service mine because regular maintenance will improve the life of the units and save energy costs in the long run and I know that I'll put off doing it myself until something bad happens.
I can build a house. As a matter of fact, I have built over forty of them, two with my own hands from start to finish. But the last three houses that I bought were already constructed, because the time and headaches required to build my own home were not cost-effective for me. The loss of income during the construction period would offset any savings realized by doing it myself.
My point is this: people will always be willing to pay to have someone else to perform a task for them as long as it is more convenient, more efficient, or more cost-effective for them.
And as long as a real estate agent demonstrates the value proposition of professional service to the consumer, brokerage will always exist in some form.
Because the consumer is willing to pay the service!
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Richard...where have you been all of my (professional) life? LOL! Great post and excellent points! I didn't know you could do heat and air and build houses! You should live closer to me!
Great blog!
Excellent post. One of the keys in my opinion is to show them the value of the services that are provided. It would be easy for some one to try and do it themselves if they didn't understand the value and importance that a professional Realtor may offer.
Great common sense, Richard. Of course you can do it yourself. But if it is not something you have experience with, or have time for, why would you?
I'd love to be able to cut my own hair, but my stylist has a better view of the back of my head. I know I look better because of her!
Richard - You point out the mistake that many "professionals" make by taking time from their income producing business to do tasks they are competent to do. Such adventures are frequently not cost effective.
Richard,
This is a nice look at why we should be stressing the value side of our services and what is in it for the seller.
Richard, as always, well written. We as Realtors have to show them the value of our services. Unfortunately, many don't and it makes it more difficult for those that do.
Love your photos as always! You are right, I was just training my agents last week about the listing process and I told them that the two major hurdles they will have to overcome are commission rates and listing price. I went on to tell them that if they show their value they can squash the commission hurdle immediately. Same way with dealing with FSBOs or unrepresented sellers as I like to refer to them...show them value and how you can save them much more than the commission you are charging them!
There will always be those who she the value in hiring someone else to do work that they might be able to on their own. Your examples are great proof of that fact my friend.
Richard - I know how to change the oil in my car but I pay someone to do it. Opportunity costs and expertise resound in your post for all the right reasons. This is a great message to consumers of our services. I enjoyed this. Thanks
Bob...
Thanks! I know enough about a lot of stuff to know that I don't want to do it anymore! Have a great day.
Darrell...
It is a simple as that ... the value proposition. THX
Kathryn...
Let's not get into cutting our our hair. Bad memories there. lol and thanks.
John...
Of course we all think that we are "saving" money but that is not always the case. Thanks you kindly for the comment.
Don...
And for the buyer as well. Thanks my friend and have a great day!
Connie...
If people only knew how hard we work! Thanks so much, I really appreciate it.
Jeani...
And when it is corrected presented and executed, people are happy to pay for the service! Thanks for the comment!
JL...
That is the case my friend. Now go out there and sell something!
Claude...
I knew that I missed a great example. I haven't changed my own oil in years, but there was a time that I bought it by the case! Thanks for bringing that up!
It's all about the value proposition.
Without it, prospective clients will either do it themselves, or hire someone else.
But one thing is a definite. Without a good value proposition, they won't be hiring you.
Richard: We can be tremendous time savers for home buyers and sellers. We have the tools of the trade to get things done much more quickly than either party setting out on their own.
hi Richard, an excellent list of examples. Every industry changes but smart people value their time and are willing to pay for what they don't have the time or expertise to do themselves.
Richard...I have heard this also a lot lately. I also heard 7 years ago that the MLS will be no more. Someone is just looking for attnetion.
For many of us the Internet has helped our brokerage services. It's just a new way of doing business. There's still too much complexity in real estate to buy sight unseen and without representation on the web.
Do you do dishes sweetie ;) hehe. You certainly have a great point and so Real Estate for now lives own.
I got into real estate after trying to sell my house on my own. Oh, I got a lot of activity and even an offer - at half of the asking price. Listed with a friend that was new to the biz and netted more than I would have accepted by owner. The experience made me realize that selling real estate was a much needed service.
Will real estate be taken over by the Internet? I was afraid of that as my friend who is a travel agent certainly got hit although she had worked in the corporate world so she's still afloat. However, just the other day I brought buyers through a house that they fell in love with online. The personal showing made them change their minds as you just can't see it all with photos and virtual tours. I know some have purchased homes strictly online but for most that will never work.
Richard, I think you know I love Mark Twain.
"I didn't attend the funeral, but I sent a nice letter saying I approved of it."
I am sure that when TV came alone Radio was destined for immediate doom.
Yet radio has prospered and morphed in to many different things Now ala car if you pardon the pun with PAID radio ala Sirius (sic)
Thank you
David Pylyp
Living in Toronto
As professionals we must concentrate on aatracting and serving people who need us, instead of worrying and complaining about those who want to do it themselves...
It is like the contractors who complain about Home Depot and Lowes because everybody can do it themselves now...
Great Points, If we delegate it is amazing how much free time we can make, to work on our business and not in it.
Your post is right on the mark. It is our knowledge and experience that makes us better at our job. They can do it but it will not be as easy as they initially think. How many times do FSBO's ending hiring a Realtor? Great post!
Very well said. And, like Kathryn said, I don't cut my own hair either. But with me, there is a big difference. I'm getting so bald that I might be able to cut my own hair by just shaving it all off! Not quite there yet... still living with the fringe.
Delegation is one of the best ways to get ahead in life. I find it often saves me time and money to have someone else provide a service I am perfectly capable of performing myself. While they are working on one task I can be making a sale to pay their fee--that's business!
Thanks for the excellent point of view. The service industry will survive. And Real Estate Sales, and Property Management are part of that industry.
Steve
Absolutely true.....90% of my clients have done some research on the internet prior to working with me. It gives them a basis to go forward by educating them on the market. I love it.
Richard,
I couldn't agree with you more!
Thans for the great post,
DeeDee Riley
This business has and will change. But, the public is still going to need smart and professional Realtors. So the news of our demise; has been greatly exaggerated. Thank gosh.
excellent post, service is what we sell, not houses!
Very timely and informative! I love your final point. We often forget that sales are still about benefits. Saving someone time and money will always be relevant. If I keep providing the benefits, I will continue having business!! I like that.
Best,
Morgan Mason
The real estate brokerage is here for now at least. Things change so fast these days I have no idea where the future will take us. The key, in my opinion, is to not hide your head in the sand and think that nothing will ever change. There are plenty of companies and industries that are now gone due to changes that they did not predict. You have to be open to new ideas and think of providing appropriate value for the consumers, your clients. As long as you are providing a valuable service to your clients where it makes sense for them to hire you instead of doing it themselves, you'll be in business for a long time.
Some people feel with the Internet they can sell there own home. It is not just getting buyers interested it is about getting the best price and navigating the legal issues.
You have to believe you are the best at what you do, and knowing a little bit about something like real estate can get you into real trouble.
Great post, thanks! I may quote some of this lol. Like someone said, showing the value is what I do from the beginning, or try to! ;.)
Very good post and points well taken that we can or should share with our customers!
And to add to that, in today's market and uncertainty, why take a chance without professional help?
Ty
That's the nail on the head 'demonstrating the value proposition'.
You're absolutely right... We should all make best use of our time, doing the things we do best. I wrote about that in one of my posts - "Making the highest and best use of your time - should you be writing?"
Hopefully, consumers will continue realizing that you save them time and money when you take over the marketing of their property.
Very true Richard. When they get great service anywhere (including RE), there are no complaints about price either.
Great analogies, this is a big deal. I'm using some of these points to argue with clients.