I was reading through a stack of magazines the other day, you know the kind of stuff that finds its way into your mail box on a weekly basis. I was amazed at the number of ads and headlines using the word ...Direct.
Here are some examples;
Direct Deposit, Fence Direct, Factory Direct, direct import, Floors direct, Mortgages Direct, Direct TV, Appliance Direct, Direct Buy, Direct Cars, Direct Access and many more.
I was curious as to how many times the Google database referenced the word Direct, so I did a Google Search and came up with an astronomical figure of over 500 million.
It seems to me that everyone in the country including Realtors are guilty of participating in and the perpetuation of "Direct is better" scenario. It seems as if we are participating in our own demise.
Every time I turn around there is another FSBO sign up on the streets that I travel. A seller trying to eliminate the Realtor, and going direct to the buyer. Google's Database shows 14 million plus references to "Real Estate for Sale By Owner". All promoting that Direct is Better.
FSBO services are sprouting up everywhere you look.
Discount Brokerages are also contributing to the Full service Realtors demise, with their sometimes misleading ads, promoting the sale of any home for a flat fee of $2495.00 proclaiming that "We do Everything". Proclaiming to the world how much of your commission money they gave away. It does not take any talent to give money away!
They are making this a Wh-res industry, telling the world that you don't deserve your commission of $30,000.00 on the sale of a $500,000.00 home that you have worked your bunns off to sell.
Then I ran across a PR announcement , proclaiming the virtues of their new Direct Real Estate Matchmaking service. And they are doing a Great job of Diminishing the Realtors Value.
It seems that the value of the Realtors Services are being downplayed, diminished, and denigrated on every turn. That sellers will only use a full service Realtor as a last resort to get their property marketed, sold and closed.
The typical attitude on the street today is that the Realtor is Lazy, and overpaid for their service, that they do nothing but put up a sign, do the MLS, and sit back and collect their fat commission checks. Which we know is untrue but as a group do very little if anything to counter that prevailing attitude.
It's time to fight back...to educate the public of the value of the full service, Hard Working, Full Time Realtor.
I set up a "NEW GROUP" "RECOMMENDED REALTORS" last week to provide a distinct platform to the 35587 Realtors that are members of Active Rain, a place where each of you can promote each other to the world via the search engines. To post Testimonials about deserving Realtors. As of today there are only 5 members in this group. Thats pathetic! Looks like the industry is going "self Service" and Discount for sure.
Maybe you are apathetic, lazy and don't care where your industry is heading, Maybe you are just too busy, existing in your own small world and don't want to put forth the effort to preserve your honourable industry.
I Know a lot of local full service Brokers that are having to lower their commissions to 3-4% just to compete.
Looks like most Real Estate Agents will be selling homes and only making $1200.00 per sale if the trend continues, and the trend will continue. There will always be people willing to give their services away.
Many of you probably don't remember the Full Service Gas Station. I do, I built and owned the first self service gas station in Alabama many years ago and now where are the full service Gas Stations. They don't Exist except in very few places.
Looks like the Real Estate Industry is heading in the same direction!
Charles, I'm certain that this isn't a trend and that the industry will be changed forever because of the consumer, not because of what agents are doing or not doing.
Service will still be king, but consumers just won't be willing to pay as much for it, i.e., Target Stores.
I believe in the flat fee approach while paying the selling agent a "normal" commission. That's what we do, and everyone of my listings is in the local MLS.