The travel industry has done it. So has the financial investment community. When the banking industry embraces technology to reduce consumer costs and enhance their customer service someone should take the temperature of Hades. They all have realized that e-business is here to stay and they are adopting it for all the right reasons.
Why then is the real estate industry only recently getting dragged kicking and screaming into the world of high tech and why are they being so stubborn about innovative business models. The internet has been around for some time now and consumers have been buying and selling homes online successfully for much of that time. Consumers recognize the convenience of shopping online and real estate is consistently one of the highest ranked search terms on many search engines. Why then wouldn’t the North American real estate industry jump on this incredible opportunity and smother it with listing data? Consumers crave it. I’ll tell you why, politics and special interests.
The National Association of Realtors™ (NAR) can’t seem to make up its mind about what they will and won’t allow their membership to use when it comes to marketing their properties on the Internet. They seem to be at odds within the hierarchy about who has control of the listing data, how it will be displayed, who will display it and where it can be seen. They claim they will have a policy in place for sharing of data but will this policy be in the best interests of the consumer? If it is, there will be unhindered display of property online regardless of opt-in or out, with consumer access to ALL listings period.
Vendors simply want their homes sold for the best price possible with the least amount of hassle. The more eyes on their listings the better. Many realtors are trying new business models that offer their services for less cost and give the consumer a choice. They are using technology in very creative ways to support these business models, trying their hardest to remain competitive with the big boys of the industry and this is very unsettling to the NAR decision makers who perhaps are feeling pressure from the large corporate and franchise real estate operations that make up a great deal of the listing inventory in the Multiple Listing Service.
The Large Brokers Advisory Group, a star chamber like association of special interest, has been granted a voice on the NAR board of directors. If I was a forward thinking, Independent Broker of small or medium size this collaboration would concern me a great deal. For as long as I can remember, (I go back to manually maintained 3 ring binder listing books), regional and national real estate associations have been too politicized and are inclined to make some pretty obtuse decisions. Allowing this Broker group this sort of influence seems to be yet another of these decisions.
As long as the Large Brokers Advisory Group exists, and works within a cloaked environment, the entire real estate industry as it currently stands is threatened. This is about market share, money and influence and as long as the NAR is afraid of losing this groups listings as a whole, there will be little talk of much needed policy change or overall cooperation amongst members. A strategy that protects special interests, keeps commissions in the stratosphere, contributes to higher home prices and seemingly puts the consumer in second place is screaming for a change. Competition breeds innovation and technology will play a huge role in this if the NAR works for ALL its members equally.
Fortunately for the smaller Independents the Internet exists and is coming into its own in the nick of time. Many of these independents are adapting innovative technologies to level the playing field, utilizing some amazing software and hardware to benefit their customers. Entrepreneurs are entering the game with their own unique answers to this problem with websites such as Agentsmate.com. New technologies allow any realtor independent or corporate, to work in the highest interest of the consumer. The NAR should start thinking about the best interests of the consumer. Handcuffing much of their membership with overprotective, antiquated thinking makes the entire industry look bad.
The realtors I speak to simply want to serve their customers and make an honest living doing it. It’s a shame really that this NAR fiefdom had to be sued by the DOJ to get them to seriously look at their policies. Other consumer driven industries are coping relatively well, why not Real estate? Let me know what your thoughts are on this.
Richard Embro-Pantalony is the President and CEO of www.Agentsmate.com , www.profitingbig.com and the technology editor of www.Principalbrokeronline.com
©Agentsmate.com - November, 2005
