Getty Images
I got a surprising e-mail from a real estate broker this week. The topic: How real estate agents have become "dinosaurs," done in by technology and a growing do-it-yourself ethos.
It isn't often that I hear from a stranger heralding her own profession as obsolete, so I called her.
At 53, Sissy Lappin runs a one-woman brokerage in Houston. Over the course of a 28-year career, she says she's sold more than a half-billion dollars worth of property, from $90,000 bungalows to $9 million mansions. Though her business has been doing well—she sold all 13 of her listings last year—her outlook on her profession as a whole isn't optimistic.
Shrinking equity has caused consumers to take a hard look at ways to cut transaction costs, particularly the typical 5% or 6% real estate commission, she says. And they've discovered that they can now find all the information they need to list, market, stage, negotiate and close a home sale on the Internet.
Like bank tellers, travel agents and other middlemen, real estate agents are no longer critical to a transaction, Ms. Lappin says—though many of her peers will undoubtedly disagree. And as technology has made their role less essential, their ranks have plummeted. According to the National Association of Realtors, the number of real estate agents fell to roughly 1 million members last year from about 1.4 million members in 2006. Ms. Lappin expects the decline will continue as more technological tools are developed to help sellers and buyers deal with each other directly. "The real estate game has changed forever," she says.
Younger sellers are particularly confident about their ability to sell their homes themselves using the Web, smart phone apps and social media, Ms. Lappin says. She recently lost a juicy commission to a seller who sold his home to a Facebook friend before she could list it. Another potential client avoided a commission by paying his receptionist $1,000 to learn how to sell his home on the Web—and it sold.
Ms. Lappin isn't bitter about this lost business, because she sees it as the inevitable consequence of innovation. Though industry trade groups spend millions lobbying local and federal government to protect agents' commissions, "innovation doesn't care about the real-estate commission," she says.
Still, not every seller wants to spend time chasing and nailing down a deal. So no matter how much technology devastates the business, Ms. Lappin expects a few agents will survive. Some will provide discounted or fee-based services to cash-strapped consumers who have seen the equity in their homes shrivel over the past few years. Others will work for clients motivated more by convenience than need, who will demand not only traditional sales and marketing advice, but also help with moving, storage, decorating, repairs and other chores.
Ms. Lappin isn't worried about her business at the moment, since Houston is experiencing an oil-fueled boom. But no market stays strong indefinitely, and when she becomes less busy, she plans to write a book laying out the steps for sellers who want to sell their own homes.
Is that shooting herself in the foot? Perhaps—but it's also another way to tap into what she sees as an unstoppable trend towards self-sufficiency in a world where information flows freely. "People want to control their own destiny," she says.
I find this article intriguing....with all the technology available...how to do this... how to do that, why not sell your home on your own? I encourage it....try it...maybe it will sell...maybe not. But consider.. what do you lose? What do you gain? Possibly a higher asking price on your home will be lost, a sharper negotiated deal on your behalf.... just to name a few. Embracing innovation keeps us on our toes...applying it to your business with your expertise... is no match for what others think is so easy. Have a fantastic weekend! Just launched New Website...check it out http://HollyWiesnerOlivieri.com
Posted via email from Holly Wiesner Olivieri , The Staten Island Real Estate Resource
No comments:
Post a Comment