I promised a continuation of my last blog, and here it is. In the last entry, I talked a bit about limited service and discount brokerage. This time, it will be more about eliminating agents from the picture.
OK, here is the shocking statement to start off with. Buyers and sellers don't need us in order to complete the transaction. That's right, we are not a necessary ingredient. Obviously, the buyers and sellers need each other. They need a real estate attorney to complete the transaction. Usually, they need a mortgage broker. That's pretty much it. They don't need a real estate agent, they don't need an inspection, and they don't need the MLS or other tools that we bring to the table.
But, did you notice the "need" theme that ran through that? Would you ever tell your buyer not to get an inspection? Of course not. But is an inspection a required part of the transaction? Of course not. Need and advantageous are very different things. We need to not lose sight of that. It is advantageous to deal with an agent, for both buyer and seller. It is advantageous to get an inspection. It is advantageous to use the MLS, for both buyer and seller. It is advantageous to the buyer and seller to have access to our tools, our contacts, our knowledge and our counsel.
That is the crux of it. We (industry groups like the NAR, and our broker parent companies e. g. C21, Re/MAX, etc.) are telling our prospective clients that they need us. Meanwhile, the limited service and FBSO organizations are telling our prospective clients that they don't need us. And they're right. What we should be telling them is that it is to their advantage to hire us. We will make the transaction smoother, easier, and less stressful. We will keep the time wasters at bay, and keep the transaction on track. That is what we do, and that should be our focus.
Since I'm a car guy, I have to sum it up like this.
A Ford Crown Victoria and a Lincoln Continental are built on the same platform. They both come with power seats, power winders, A/C, and a V-8 engine. They both hold the same number of people, and about the same amount of stuff. But the Lincoln costs way more. Why should someone pay the difference? Because it is smoother, easier and less stressful. It is quieter and a little more comforting.
We are all of that, as well as knowledgeable. We can save our clients money, maximize their sales price, smooth out the bumps, and hold their hand when they need it.
What do YOU think? I'd love your feedback. Thanks.
Unless otherwise noted, all content of this blog is the property of Lane Bailey, ©2012 Lane Bailey.
I'd love to hear from you...
I would have to disagree with your take on the advertising. I just watched the CBS Sunday Morning show that was loaded with NAR, C21 and ReMAX adds and they all tauted the need for a REALTOR and their expertice. I think the fact that the limited service companies are trying to get a toehold on the market share we need to realize that consumers are the determining factor of success.
Car anology: Never buy a FMC product! Toyota and Lexus all the way why because they have a product that lasts and is more reliable, the same will be true for agents as the market slows down
I knew the Lincoln and Ford that shared the platform right off the top of my head. There are some platform shares for Toyota and Lexus as well. The brand is not material to the discussion. I do, however, have a Ford. I have an F-350 Crew Cab Dually with a Diesel and 6 speed. I can take the weight of a Toyota (full-sized) truck, and carry it in the bed. I can also tow the CVWR (Combined vehicle weight rating, or what the Toyota can weight and what it's trailer can weigh, combined) and tow it... with a few thousand pounds left over for a big trailer.
Nothing wrong with Toyota, but they don't meet everyone's needs. Neither do real estate agents. And, we aren't a need, but rather an advantage for our clients.
Thank you very much for commenting. ;)
I love your perspective on this topic. I find myself working with more and more clients who don't have an agent yet. I will definitely use this when and if they ask me my opinion on the pros and cons of FSBO/Discount versus full-service. THANKS!!!!