There's a lot of hoopla regarding the mass release of real estate agents "private MLS database" information. Media outlets and online bloggers say that this opening of the Realtor kimono will be the death of 5% and 6% commissions because everyone has access to the same info and market statistics. But, hasn't this always been the case? In the past, prior to listing your house, wouldn't the average seller interview several agents and receive a complete CMA from each? These FREE reports have long been the tool agents use to justify, position and build a case for their recommended listing price.

Unlike many online value estimates tools from sites like Zillow.com, Housevalues.com etc, the CMA (competitive market analysis) is based on four data points: 1) recent area sales and listings 2) agent's experience 3) seller's desires 4)the property's pros and cons.

Of the four data points, the online tools have no way of knowing the pros and cons of a particular home. This fact alone reinforces the value of local agents and their neighborhood knowledge.

Traffic issues, local school drop off and pick, neighbor's home in disrepair, noise issues, views, potential to block view, future development (good and bad), individual buyer expectations, updates, quality of construction and remodels, parking, staged vs. not staged, and the list goes on.

The Real Question: How to draw a buyer to your listing!
Many of the online sites miss the most important aspect of selling a home; it's not just about picking a price, it's more about getting potential buyers to consider a particular property. The MLS is and will continue to be the most powerful tool a seller has at their access to attract buyers. However, like any sales driven initiative, the product's marketing can make or break the deal.

Look at most of the MLS listings from the South Bay that arrive in your inbox. The good ones have excellent  and compelling copy, at least 10 quality photos, and they are tied to a known agent or broker. The worst ones have 1 or 2 blurry pictures, talk about your "dreams," are riddled with typos, and can all but stop potential buyers from picking a property as a viable option.

It's because agents have such a huge disparity in their ability to describe and market a property that the buyers agent's role is particularly important. Left to their own devices, many buyers would rule out potential homes based solely on the MLS data they've received. It's the the skill set of the buyer's agent that can really make a difference. We often show homes that our client's have rejected on paper because we know what is really being offered.

With the advance of online tools and sites, listing agents are held to a higher standard because their marketing is reaching a much larger and broader audience. Agents who continue to publish horrible MLS data will be forced out of the business, while agents who understand marketing will rise to the top.

The Real Estate Agent Lexicon, the Lowest Common Denominator
There's a fine line between clever and stupid, yes, I'm quoting Spinal Tap. Left to their own devices, weak agents and owner's who market and sell their own homes don't have the skills needed to compete in today's democratized real estate market. Just because a seller is a brilliant in their day-to-day job won't necessarily translate to having the skills needed to sell a home.

In Manhattan Beach, we are dealing with an incredibly upscale, educated, and wealthy clientèle. Selling a home to this audience is completely different than selling $400,000 homes in Sacramento.

The South Bay buyer who is about to plunk-down a truck load of cash will be turned off if a home's marketing is inadvertently targeted towards a down-market buyer. This is why Manhattan Beach and Hermosa Beach have a pretty solid group of agents who do business here. These agents have honed their skills in the South Bay, and know what it takes to draw buyers to their listings.

Agents are still an essential component to the real estate sales process, which I don't believe will ever change. I've said it before and I'll say it again, online real estate sites are looking for their own pot of gold and they are using top-notch marketing to influence the media to support their position. Zillow.com et al. are businesses looking to make money, lots of money. I get a chuckle when I read stories for these sites that include testimonials from seller's who "saved $20,000" by buying/selling online. Maybe they did, maybe they actually lost $40,000 by not using the skills of a seasoned agent who would have brought them a better selling price.

How Online Real Estate Sites Get Eyeballs

As stated previously, it's all about marketing. The online real estate company that markets best, gets the eyeballs. even more important than marketing is SEO (Search Engine Optimization.) The ranking a site gets on Google or Yahoo can drive 1000's of prospects to the top ranked sites daily.

It ALL Starts on the INTERNET!

Recent stats show that 80% (plus) of all real estate buyers start their search online, which reinforces my position that agents need to turn-up their online marketing efforts and quality of materials. As long as agents continue to add value to the equation, they will justify their customary commission rates.

Have a look at a CNN story about the death of Real Estate Agents   

Artical on CNN Money Regarding online real estate sites and the demise of commissions <<--click here