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The Sky is Not Falling - The Internet is Not Replacing Realtors

Chicken Little

In several recent blogs and posts this question has come up frequently. Several agents seem very defensive about online services and how they may replace Realtors one day.

I have only one thing to day about that. Get over it!

Yes there is more information than ever out there. Yes clients have more knowledge than ever. No they are not prepared to go at it on there own because of Google, Zillow, Realtor.com or Yahoo.

They now can window shop more than ever. That is good for me.
My clients now have a better of idea of what they like.
They have a better idea of market prices, hopefully making them more realistic.

So now they have access to much more information than ever. So what? What will they do with their new found information? They will call me or another Realtor to get them in to see the home. Buyers don't generally pay for my services anyway. They still need help disseminating all of the data they so eloquently downloaded. They will need our expertise to:

Help establish the actual value of a home.
Draw up contracts.
Open escrow.
Schedule the needed inspections.
Protect their interest throughout the sale process.

Am I threatened by the information being on the internet? Just the opposite, I am posting all I can on the internet. It creates more ways for potential buyers and sellers to find me. Those that want to window shop and are not ready to buy can click until their heart is content on my website. When they are closer to buying they will have been staring at my picture for a long time. If that hasn't scared them off I may get a good client out of it.

When a potential seller asks you what is your plan to market our home? What will your answer be? Surfer

Will it be?

I just put it in MLS without a picture as many do and will wait for offers to come?

Or will it be?

I put it in MLS with many great pictures and post a virtual tour.
I also list it on: Craig's list, Google, Yahoo, Century 21.com, Realtor.com, your personal website, DOD referral site, etc.,
Along with picture ads in the daily paper, just listed cards and open houses

You can whine and complain about the big wave that is coming or you can wax up your surf board and start swimming out to meet it.

All the technology in the world will not replace personal relationships, hard work and dedication. I have not yet met a computer that can negotiate a deal or market a home. They can't even shake hands.

So for those of you who are all upset about listings on the internet, lighten up. If you are convinced this will be the end of you as a Realtor, than you better start looking for a new line of work. The wave is coming. It is not good, it is not bad, it is just reality.

The internet is a great source of medical, home repair, legal and tax information. I will still use a doctor, an electrician, a lawyer (only if the sky is really falling) and an accountant despite all the information on the internet.

So if you are one of those agents who continue to believe the sky is falling, we may have to present you with the "Chicken Little Award"

Posted by Randy L. Prothero - Hawaii REALTOR® on 01/14/2007 01:29 AM

Comments (62)

customer service, internet, google, yahoo, zillow, mls, google base, hawaii, mililani, century 21

Originally posted at: Hawaii Randy's Real Estate Opinions: The Sky is Not Falling - The Internet is Not Replacing Realtors

62 Comments on The Sky is Not Falling - The Internet is Not Replacing Realtors

JAN

2007

I completely agree about the human side of the transaction. An NAR survey found that buyers who use the web take longer overall to buy - but when they finally go to view homes with an agent, they look at fewer homes and make their decisions more quickly. That can be attibuted to their research time on the web. So if we provide better quality content on Localism, we can shorten the buying cycle!

John - I see that and agree that most clients make faster decisions. There are those that are sent the other direction. They get the kid in the candy store syndrome. too many to choose from.

Thank you Randy. I have a well worn soap box that I like to stand on about this very subject. When I am on it I sound something like this...

"This new age of information (internet) will only make good agents GREAT and so-so agents get another job." I am so excited about this change. Now my VALUE can really be seen and appreciated. And you are right... the internet will never replace us. No computer can give the human "touch" or provide the experience that we each bring to the table. :)

Mariana - I can't think of anything to add to that. You said it so well.

by David Kucic, Hawaii REALTOR

Hawaii Real Estate

You are right about that. The internet is a REALTORS friend! I have used it, will continue to use it and have no plans to stop using it.

Aloha From Paradise,

David Kucic, REALTOR

http://www.davidkucic.com

David and Tonya - I love the internet, I love the internet, I love the internet. They must have put something in the water at the Google forum the other day.

The big boogy man that is always mentioned is the demise of the travel agents....

Well I have never seen an airline ticket that required a six page legal contract. It is really not a reasonable comparison. Travel agents disappeared because their product truly was the information on schedules etc. which they guarded. Our MLS information isn't our product by a long shot and if that is all we provide to our customers then it is time we go the way of the Dodo.

You won't see me playing Turkey Lurkey when it comes to the internet. The sky isn't falling over here.

Erik

Erik - We have a 12 page DROA plus addendums. I think we are safe for awhile.

This article is a great incentive for Realtors to become more proficient with the Internet. It's just like anything else. If you are prepared (technologically in this case), you will be ready to perform.

Alfredo Ramirez (R)

Hear! Hear! Great blog Randy. I too, agree with you and the others. Mariana's enthusiasm is matched by my own. And Erik, your point is well taken. The travel industry comparison should be laid to rest already.

Happy 2007 all!

What difference does it make what we think about the public using the Internet for information??? NONE! ! It is there and they will use it.

The key is for us to be there too. I contracted for my first Interent web site in March of 1995 and haven't looked back since. Homefinders.com went live in July 2005.

Change happens. You either embrace it or others will leave you in their dust.

NEWSFLASH! ! It isn't going to get any easier. It's getting harder and harder to stay on top on the Internet. This is a full time job. You either know it or you buy services from someone who does. But, if you expect to make a lot of money in real estate sales, the, IMO, Internet is your best advertising resource.

Lenn

The sellers and buyers just use the Internet to keep the REALTORS on their toes!

Randy, Well written and spoken! I totally agree! The internet also doesn't make the appts for everything inbetween the accepted offers and the closing. Realtors are a wealth of knowlage that can't be replaced by the internet, there is just way too much that goes on durning a sales transaction.

The day that the internet can open a lockbox and get that stuck key out is the day we should start to worry.... until then its all good. I agree with using the internet. So many Buyers actually make your life easier by window shopping and eliminating things. Thie is why I am so passionate about Staging. People see the great photos and can't wait to see the listing....

I have shelves of books, a huge dictionary, and get newspapers and magazines weekly. Television, radio, and computer readily available.

All offer boundless information all of widely varying value and quality, just like the internet offers. Doesn't mean anything if I don't know how to use the info, or disregard the things I find uncomfortable.

The human side is here to stay, because of the skill, dedication, focus, caring, and sweat that the prospect's computer just can't offer.

Hi Randy,

Excellent post, I agree with you completely, I come from a mortgage backround and I remember when the Dot Companies started rolling out all this information to do do your loans online.

People want information,and they will shop, but when it comes to probably the biggest transaction in their life, they a person to do it, not an online transaction.

One of the best sayings I heard was,

The Internet won't replace Realtors, but Realtors who use it will.

The wave is coming. It is not good, it is not bad, it is just reality.

Randy, besides being a pretty face you are a philosopher! Actions, ideas and even waves of revolution are never inherently good or bad but only take on the value we give them. I am trying like heck to get my surfboard waxed up (actually I am still shopping for a surfboard that will support me!) and looking forward to another change in a market and an industry that is defined by change. When it comes to riding the rising and falling waves of change in our industry we should remember the basics: when the wind stops blowing, start rowing.

Another great post.

Randy - As with all industries these days - while technology is important to integrate and enables us to do more than before - it doesn't replace the professional.

That's the one thing FSBO's don't understand. Most serious buyers have nothing to loose, and everything to gain, from using a Realtor. Nope, the sky isn't falling! The rain continues!!!

Randy, great post! I like Gary's last comment. That's what we're are trying to do here on AR, aren't we!

We are heading for the paperless mortage where there won't bne any originators either. The best professionals always play a critical role. We need to adapt and embrace change. This way we will survive.

Exactly --- couldn't agree more! Someone out here may have already said this but... Information is Power, Knowledge is priceless. So to all those afraid of how the internet will change our business, I say let it rain!

Great post Randy! Like you, I am providing information so I can be found on the internet.

Good thinking, Randy. When we knew we were moving from Wyoming to Missouri (many miles) my husband spent days on our dial up connection and printed reams (okay, how many million times have I told you to stop exaggerating?) while window shoping. When we had 3 days to find a place, we didn't buy one that he had shopped, but he had eliminated many and his internet research was useful in that we could ask the agent questions about them ahead of time. When he told us he had never seen one home without a line of black mold around the windows, we saved ourselves alot of miles driving for a REAL look.

YAY for the Internet. It is a marketing tool for property. And now, with the idea of blogging catching on,it is a tool for building that relationship that gets folks into the house that is hunting for them.

JudyAnn Lorenz, Bar JD

Alfredo - There is no choice you have to utilize the internet.

Maggie - We are nothing g like the travel agency. We are selling service.

Lenn - You are right the internet will continue to evolve and will be a bigger part of our business.

Phylena - This was not in response to just your remarks, it was in response to a serious of posts. I feel we will not control the information going out. We have to learn to service those with that information.

Well Said! I agree completely! Does anyone really KNOW of Someone who has done a transaction ON-LINE ?? Funny comment on this - I had a person who had signed up for an my email listing service. After a few months he sent me an email to unsubscribe from the search and a note to me saying "thank you for sending me all the emails of properties, but we recently bought a PROPERTY OFF-LINE LOL!!!

Debbie Cook
www.thesilverbee.com

Chris - I am not sure that is a bad thing. There are a lot of Realtors competing for the business. I need to keep on my toes.

Lysa - Well said, the internet is just information like books were. Information alone will not turn the world into Realtors.

Karen - Great photos allow us to take advantage of the internet. I think Realtors who are tow lazy to take good photos should consider some other line of work; shame on them.

Mike - I had a surgery last month. I read all about it, I knew the sequence the surgeon would use and I knew what to expect after the surgery. It made me a better patient not a surgeon.

Gary - I like that phrase. Another way of saying it is only better Realtors will replace Realtors. Which category will you be in?

Sean - A phrase I like to use for things that are coming and you can not change that. So why fight it learn to embrace it.

Tony - I spent 20 years in the printing and graphics industry. They went through the same pains real estate is going through. The professionals were used to controlling the entire process and now technology has given some of the control to the consumer. Those who have embraced the change are still in the business those who did not doing something else.

Chris - We haven't seen "For Sale by Owners", as a big deal in Hawaii. I have had one or two clients try it and not do so well. When they told me they were going to do it, I did not fight it. I have learned to be supportive, not put the giant push to talk them out of it. I let them know I am here if they need me. The couple of clients who tried it are still with me.

Elaine - Great point; AR is giving us a lot of exposure and helping us improve what we do.

John - On the Realtor side, I have every document scanned and keep a complete electronic file of every transaction. There are many Realtors I know who wouldn't know what a scanner is if it kissed them on the lips.

Joanne - It will rain whether they like it or not. I agree bring it on.

Ava - You are doing the right thing. The top pros will continue to build and improve their web presence.

Well said, Randy! People want t find information online, but they still want human contact to sel them a house. The internet is just another tool that we can use to our advantage to find prospective buyers and sellers...the rest is totally up to us.

JudyAnn - I have found that to be true. Many times the internet helps clients narrow the search. Every now and then I get the dream buyer who e-mails me and says can I see this home and they but it.

Aaron - You made a good point. When we are signing a contract. With all the information printed out the client will always have many questions that a computer can not answer. The computer does not have a way of bringing down their stress either.

Debbie - I am in escrow with a client I sent listings to via automatic e-mail for two years to Georgia. They moved to Hawaii, selected and a building from my e-mails that they were interested in. They looked at three available units, picked the one they like and we will be closing on the 30^th of this month. That would never have happened without technology.

Jim and Maria - Great tools and technology have not replace mechanics, why would they replace us?

Wow, great blog! Especially since it is so timely.....

We are enhancing our presence on the internet as a team and so should all full time realtors/lenders/stagers etc..... If you don't, you will be left in the dust. We are a society that demands instant gratification and I am no different.

If I am looking to have surgery (Randy's example) then I want to know everything about what to expect. If I am moving to an area, I want to know everything about that community, neighborhood, actual homes, sports, schools etc... That will just make my agents job easier because now she/he doesn't have to "sell me" on the community because I already know a great detail of information. Now their job is to help me narrow down my search, educate me on the nitty gritty and get me into something wonderful.

If my(agent) website doesn't have all that information that brings them searching in the first place and keeps them there during their research process, then I would lose them to a realtor that does incorporate that data on their website.

We are analyzing website design houses right now so we can build what the consumer is looking for so when I say "timely" I really mean it. I am presently using my company website and we feel sooooo behind the times. I am trying to catch up because there is no "sky falling", the clouds are just getting higher and its our job to rise to the occassion!!!!

Regarding computers taking over our life.....

I moved telephone companies because I got so sick of responding to a computer everytime I had question.

We had verizon on our land line service and after 10 min. on the phone, pushing "1 to have my options in english", press 4 for billing, 5 for installation, 6 for whatever..... I just can't stand it!

Give me a live human person that I can ask for direction to a department, gripe to, tell them how wonderful they are, whatever I want that day!!!

I went to a local telehone company 'Southern California Telephone company, used to be Wholesale Airtime" and its amazing. No matter what time of the day I call there, I get a live person and since there are only so many of them, they know my account. Ok, granted, they are not sea to shining sea but they cover Southern California, they are less expensive and I get personal service. So for me, I will always stick to a live body for most things

(some things are better via computer like ordering books that you already know you want...no driving, no lines, no getting caught up with all the other books that you end up buying because your standing in that long line :)

We are here to stay, like it not, the web sill just make us better and our job easier. It will also make us work for our business but isn't that a good thing?

Lisa - I agree if they don't get what they want from your website, they just click on down to the next agent. They will get the formation. The question is are you their source?

Lisa - The personal service makes a huge difference.

I have always worked hard for my money, I think the technology is helping me to work smarter.

Another great post!! The Internet is a wonderful tool to bring realtors and buyers/sellers together, but will never replace us. If people hate automated phones, do you think they will adapt to automated Realtors?

Shari, My point exactly and I don't think I am alone when I say that "I do not like to talk to computers on the phone".

This was well put. I embrace technology, I love the fact that the potential customers can get the information they want on line. It has been a great asset because now some of my clients can send me the type of or the exact properties they would like to see. The key as you rightly stated is to provide as much information on line, be in their faces so that when the time comes for selling or buying you will be first choice.

Shari - I think they will go to automated home inspectors and surveyors before they go to automated Realtors. Since I don't see them making those changes in the next 20 years I think I am safe until I retire.

Lisa - I hang up or hit zero. I will not talk to a computer; I find it insulting.

Jennifer - If they are on my site getting all of their information. they are not on my competitors site.

by David Kucic, Hawaii REALTOR

Hawaii Real Estate

Randy-Not only was this blog fantastic but the comments were amazing as well! Lisa Forss mentioned some things that I actually busted out a pen and paper on and took some notes. My web presence is good but can stand to do a lot better. My goal is is just like everyone else that follows the technology available to us....to give our potential clients a one stop shopping place that allows them to find almost everything they need. I hate to bore you but I must toast you and Active Rain once again!

Aloha From Paradise,

David Kucic, REALTOR

http://www.davidkucic.com

The web is just another valuable tool that we have to sell property. It is probably the most powerful tool at our disposal. Listing and selling property is just a small part of the service that I offer. To make a transaction work I have done many things that the internet cannot do. I have cleaned houses, refrigerators of the most scummy of messes. I have paid for repairs that I shouldn't have had to pay for. I have fought for my client with lenders, appraisors, surveyors and the other agent. I have rented storage buildings and unloaded trucks. I have rented mailboxes and hotel rooms to help my client. I have winterized houses and changed locks on doors and mowed lawns. I have even crawled under houses and pulled out trash to help make things cleaner for the termite guy. These are all services, and that is something that the internet cannot do. What the internet can do for me is make introductions to people around the world enabling me to put buyers and sellers together.

Randy.... excellent post. I agree, just as in mortgages. Will these online mortgage companies telling clients that they can get the best offer from up to 4 lenders..... HEy. every company has a profit margin.... nothing is free and we all get the money from the same place. Unfortunately, I lose business to these types of ads.

But...... they won't last forever... in regards to what you mentioned, yes, it's a great place to post information, but they still need a realtor to show homes and to sell/stage homes. Sure, they can try this all on their own, but considering that this is one of the biggest investments that one will make, why play with it.....why take that chance and not have an expert help you.

Again, good post.

David - The comments were really good. That is the beauty of this forum.

Vicky - I think I have done most of the things you listed except winterizing a home. Aloha from sunny Hawaii.

Jeff - In a hot market everything seemed to work. As the market has cooled I have noticed some companies and agent's lack of service is causing their listings to sit and rot. I expect a shaking out period to be coming. I am sure that on your side of the business there will be a similar shaking out period also.

Hey Randy, not sure how I missed this one. I too love the Internet. An informed consumer just makes my job so much easier. Plus teh more information they get the more confused they will be and they will need to hire me to decipher all the info they have gleaned. It's all good.

A couple days ago, I wrote a post about selling a FSBO. While that's a little different than buying via the internet, it does illustrate what can happen without our representation. ... and the seller was a lender and should have known better. (I'm not linking to it because I know Rainer's don't like that.) Not all deals go well, and a computer deal can't handle or solve those "unique" problems.

I've had a web site since 1999 and people use it as a resource for info. Buy the time they contact me, they are so much better informed, especially those moving from another locale. It's great for getting my listings exposed in a way that never could have been done before. I love it!

Bryant - I feel the same way. Informed clients are easier to work with. Those that get information overload will be calling us.

Elaine - My clients would be disappointed if I was not marketing their homes on the internet. More places to post them gives me more opportunity to impress and wow my clients.

Aloha from my Sunday open House. Unfortunately I appear to have the only one in the neighborhood. It may a slow day.

Randy....

"All the technology in the world will not replace personal relationships, hard work and dedication. I have not yet met a computer that can negotiate a deal or market a home. They can't even shake hands."

Need I say more? Thought not. SVW.

P.S. Sorry. You have my comment right inside your post. LOL. I'm not going to just change the words around. You said it very well.

TLW - Mahalo!

Well done, Randy. Unless the surveys are way off (nope, we won't discuss methodology) the numbers continue to show that buyers, and sellers, substantially make use of agents, even while they are increasing their use of the Internet. I say all the better. The more they know and the more work they do up front, the better for me - they are better prepared, ready to go, have a good idea of what they want, and we have waded through most of the stuff I would have normally had to spend time on. Better use of my time and theirs. Great job - you hit all the right issues!

Randy, technology is a great thing, the problem is with people who have forgotten that it is only there to assist us and not replace us. I love the changes through the years. Technology has freed up more of my time so that I can spend more time on doing what I need to do to be more profitable.

JAN

2007

Jeff - Thank you for the kind words. I enjoy working with clients that are utilizing the internet. I actually prefer them over non-internet clients. E-mail alone makes the transactions move along easier.

George - Absolutely, tools can't replace you they can only help you if used correctly.

I LOVE IT...Very Nice...Use it and use it well. Wink. Wink. TLW...ROAR!

TLW - I need better graphics, I will work on it.

JAN

2007

An absolutely Great post! You are incredibly right, the fact internet marketing is taking over doesn't mean that Real Estate Agents and the relationships they create are being replaced! Internet Marketing is good for one thing and I think you said it best, Window Shopping, Although..... Homebuyer's who "Window Shop" and see either 10 real estate agents online with great websites, information, personality. 10 real estate agents with "websites", 10 real estate agents that are listed on their companies websites or 100 real estate agents listed only in local magazines, the top Googled agents, only making up about 7 or so % of the agents, will make up 99% of the "Window shopping" space!

You are right, the internet will Never replace real estate agents, but it certainly does give them 99% of the exposure worldwide, agents who don't use the internet, will never see!

Joel - Well said! The internet will change the way we market and work with clients. It may also change who are the more effective agents, but it will not replace the need for Realtors.

JAN

2007

I don't think the consumer wants the internet to replace us. They want the internet to create some options with regard to cost. Clearly we can develop a reduced cost service for those who find a home on the internet and buy that first one you show to them. What do you think?

ARDELL - My buyers normally get my extensive services for free. How can I reduce free? The seller's usually pay for me.

I prefer to earn the higher commissions instead of trying to figure out how to reduce my fees or services. There are plenty of folks doing that and very few providing full service or making their clients as much money as I do. The consumers have a lot of choices.

When the smoke clears what is important? How much money I make or how much money I make my clients. As long as I can demonstrate that I can make them more money and provide superior service day in and day out, I will have earned my commission.

JAN

2007

The only REALTORS the internet will replace are the ones who don't use it - for those of us who do, and do so avidly, we will be the once doing the replacing. FSBOs don't sell (by and large) and those that do often sell under market value, so why worry about them? Eventually 90% of them are going to come to you or someone like you to actually get their home sold so they don't have to keep it rediculalously neat all the time! So instead of being threatened by online private sellers, use them to your advantage - offer FSBOs a refund on some of the money they have wasted when they hire you to do the job properly. No different than advertising costs, only you only pay them once you actually make money.

So there you have it, private sellers aren't a threat, they're an opportunity!

Stephen - I don't see anyone or anything a threat to my business. If you provide great professional service you will always be successful.

I am somewhat amazed how frequently agents responses start with discounts or credits. I prefer to start the conversation with the exceptional service I will provide. You can not win the price war, there is always someone willing to dive lower than you. You can only win the battle with top service.

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