60 Minutes & Realtors

Just got home a short while ago and I am exhausted. I feel like I could sleep for a week. Being the good Realtor I am, I came downstairs to my home office to check email and check on tomorrows schedule before heading to bed, and I had yet another email concerning the 60 Minutes piece on Realtors & real estate commissions.

Let me first start by saying that I honestly believe a big part of this problem falls on the NAR (National Association of Realtors) and the lack of advertising that promotes the benefits of using Realtors services. Good Realtors earn every dime of their commission. Unfortunately, we are also in an industry with high turn over that gives consumers legitimate cause for concern. Couple that with the part timers who have a hobby business in real estate and you can see why so many people have a low opinion of Realtors.

A bigger part of the blame falls on Realtors that don't keep up with technology. Yes, I am lucky to have come into this industry after spending almost 2 decades working for technology companies, but there is no excuse for not knowing how to cut and paste! If you can't get the digital pictures out of your camera and into the MLS, maybe this isn't the career for you (and a camera phone is NOT an acceptable means of photographing a property). Ours is a very personal business, but technology is quickly making it a tech business, not touch business. This is going to be a vastly different industry in 5 years. Realtors don't want to admit this, but the technology skills are going to be much more important as it gets more competitive.

The biggest part of the blame falls directly on consumers. How can I say that? Because the majority of people out there never interview an agent to find one that's right for them and their needs. They think we all do things the same way. It's just not true. Most people out there think that properties advertised as "For Sale By Owner" are simply trying to avoid paying a commission. I talk to these people all the time, and by far, the number one reason is that they have had such a bad experience previously with Realtors they would rather try to sell it themselves than have to deal with all the hassles of a bad agent.

Just this past Tuesday, I called on an expired property that had been off the market about a week to see if they might be interested in letting me list their property. It had been through 2 different agents previously. Both agents talked about all the wonderful updates the home had, but the first agent took just one photo from the outside. The second agent simply copied the same photo when they got the listing!!! They didn't even take the time to put a new picture in. Then, I was told by the property owner that they had re-listed the home the past Thursday, even though it still hadn't been placed into the MLS the following Tuesday. Chances are, that agent will use the same outdoor photo that two other agents already used. Did the consumer question the tactics of their agent and request changes? Probably not. They weren't even aware that their home was off the market until I brought it to their attention. So yes, consumers have some responsibility here as well.

Our industry is a dynamic thing, and as a full time agent, I look forward to these changes. If I can use technology to lower my operating costs and can pass that savings along to the consumer, I don't see that as a bad thing. I'm sure most of my fellow Realtors don't share that point of view, especially the part timers.