After reading a nice blog roll on Activerain about "pocket listings", it appeared to be loud and clear that without the MLS and its primary function (exposure), the traditional brokerage model would be in big trouble.
That seems logical, the MLS is the heart and soul of the industry, it's the way business is done. The system is well ingrained and the cement is dry.
A question this raises is why? Why can't brokerages go about the business of connecting buyers and sellers without the help of their competitors?
Could it be because the broker is void of a broad, strong and scalable value proposition for one party in the deal - the buyers?
Sellers, well that's an easy one...exposure and expertise are at the forefront. But what do we sell buyers? They already know what's on the market, know what they like, chances are good they know where they want to live, probably even have a working knowledge of the market, and no one knows what they can afford better than the buyer himself....
So, does the "pocket listing" debate then really center around the brokers inability to attract, capture and catalog buyers, making the MLS and its exposure a need but not necessarily a want. We have to assume a broker/agent would like to increase profits (the result of a typical "pocket listing") if they could do so without sacrificing quality of service (i.e. exposure) - after all, a brokerage and its agents run a business - no?
Does this mean that if a brokerage can offer buyers something they can't find anywhere else (one possible benefit) and sellers the opportunity to reach those specific buyers, all in a competitive and open arena, the tides of an organized "pocket listing" marketing strategy could shift, becoming a mainstream option for customers looking to take advantage of the value propositions that arise from such a process?
This "pocket listing" thing may have more to it than what's seen at first blush - the hurdle seems to be exposure.....solve that problem and "katie bar the door" :)
Coming soon - "Pay-to-Post" companies and the devaluation of the listing agent - just kidding :D
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA
I think you're missing a great deal of the value proposition. Market theory suggests that products exposed to the widest audience will bring the best offers possible. Meantime, competition among sellers will drive prices to the optimum level. Add to the mix, at least in rural and resort markets like mine, you have a highly diverse product mix that requires expertise to compare one property to another.
So... MLS creates a meeting place for the maximum number of buyers and sellers, and brokers provide the required expertise.
How does returning to the original system of making buyers run from broker to broker looking for product benefit buyers or sellers?
Apr 23, 2013 11:26 AM
teardowns.com - Hinsdale, IL
Jeanne,
IMO, the whole real estate transaction (connecting buyers and sellers) is in need of review with the broker/agent value proposition for customers still evolving mostly because of the Internet and its abilities to provide alternative solutions for just about everything, including brokering a real estate deal.
As a broker myself, just reading that "market theory suggests that products exposed to the widest audience will bring the best offers possible", gets me to take it one step further and suggest that exposure at the lowest cost is ultimately the best solution for customers....chances are the industry in general is not interested in that conversation.
I've been in the business for around 12 years, so I am not familiar with the original system...but I can imagine it was cumbersome - which is my point. The Internet is changing all that...vast exposure can be accomplished through "Postlets" or Zillow and reach as large of an audience or greater than a listing simply put in the MLS, and their services are free.
Lots of ways to skin the transaction cat while giving customers the ability to create the competition necessary to extract the most for their property/home. Today, the MLS solves that problem for many, but as we all work through this time of new models and innovation, IMO, we need to be open to a variety of solutions that will give our customers the best experience and best results for their purchase or sale.
IMO, chances are good that there will be a multitude of viable buying and selling solutions for customers and the current system will most likely be one of those choices.
Only time will tell :)
Thanks,
Brian
Apr 24, 2013 12:03 AM
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