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Are the days of real estate broker reciprocity numbered?

By
Real Estate Broker/Owner with Richard Weisser Realty

Are the days of real estate broker reciprocity numbered?There was a time when broker reciprocity made sense. Getting listing information out in front of as many potential buyers as possible seemed to be the right way to get attention for a real estate property listing.

But like so many other well-intentioned rationales, the use and abuse of data is exploited so pervasively that it is easy to lose sight of the mission, which is to get the PROPERTY sold.

NOT to sell advertising to agents.

NOT to sell premium memberships for consumers.

NOT to resell re-interpolated data to other entities.

Many brokers that are tired of seeing lost SEO opportunities for their listings are actually beginning to consider the fact that enough is enough, and it’s time to pull the plug on reciprocity.

The swell is but a ripple now, but soon a tsunami will obliterate the data crunchers and leave nothing but debris on the shore.

 

And it can’t happen soon enough for me!

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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Interesting, Richard.  I can remmember the olden days when a panel truck drove around town on Fridays to distribute the new "listing sheets".  And you're right about abuse of the data - something that I think started with NAR in the form of selling positions on Realtor.com.  Our database is now just a tool for Zillow, Trulia and even agents with good web sites to farm te data and sell leads.  And the public is generally clueless.

Aug 06, 2013 03:09 AM
Oscar Vasquez
Fillmore Home Value Check - Fillmore, CA

Great. This is interesting topic.

Aug 06, 2013 03:38 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

For the record....

According to the GA Real Estate Commission website, Redfin and Ziprealty are licensed brokers in GA.

Trulia and Zillow are not.

Aug 06, 2013 04:09 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

The sellers will demand that things stay the same, I would think. Also I think this would really hurt the "little guy" and so that's not great either.

Aug 06, 2013 05:43 AM
Chris Hardy
Elevations Real Estate, LLC www.BuyFortCollinsHomes.com - Fort Collins, CO
Northern Colorado Real Estate
Richard - this is a terrific post - but I'm a bit confused. Is your beef with Organized Real Estate (aka REALTORS) or is your beef with the MLS (in many cases the local REALTOR association)? Trilliow and Zulia have simply exploited the disruptive nature of innovation where the big brokerages, NAR, and Move.com completely missed the boat on what they were trying to do, which at its core was offering the public something they didn't even know they wanted (think about Steve Jobs and the iPod). We are in the middle of a sea change in which the value a broker brings to the transaction is no longer strictly data driven. It is the intimate knowledge of the process, the contract, the players at the table, the ability to negotiate win/win scenarios, and providing an outstanding experience for the client that will determine who stays viable and who retires. The individual agent is the strongest brand in the nation because it is THAT INDIVIDUAL who has the intimate relationship (or the word of mouth referral) with the client. The national and regional brands have never been able to control the experience at that individual level (which paradoxically is our industry's Achilles heel). I certainly agree that the threat to our traditional way of doing business is threatened and that the big brokerages carry a lot of clout with regard to market share and controlling where the data flows (some use their dominance to bypass the MLS anyway). I've always been proud of the reciprocal and cooperative nature of our industry. It is unique among most competitive sales fields. I think there's a viable way forward and shutting off the data spigot to Trilliow and Zulia would be a great place to start. I don't think throwing the baby (broker co-op) out with the bathwater (value of internet) is the best course of action. The market will eventually swing the other way and we'll be begging our buyer-broker brothers and sisters to show our listings.
Aug 06, 2013 05:50 AM
Dwight Puntigan
DRP Realty, LLC - Saint Peters, MO
Dwight Puntigan

For years I have gripped about the charges from NAR if I want my free data to them used for my benefit.  With Zillow and Trula and misleading my clients, I shrug and tell them it is part of my value to allow them to make decisions with eyes wide open.  Recently with NAR making a deal with the Home builders and running TV commercials to get traffic for Realtor dot what.  I have noticed increased numbers of items that are not on the MLS.  The MLS was my tool to expand my coverage to nearly match the same geographic area.  Now to be current my area will surely decrease.  I will adapt.

Aug 06, 2013 05:54 AM
Jay & Michelle Lieberman
Keller Williams World Class - Agoura Hills, CA
Creating Calm in the Buying and Selling Chaos

There is definately a lot of scrapnel out there in this area. 

Aug 06, 2013 06:16 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Richard, I just cannot see the sense in having reciprocity being thrown out the window.  Regardless of all of the other "fluff" and problems, out job is to expose out clent's home to the greatest number of potential buyers possible.  Anything that keeps us from doing that ends up not being in the seller's interest.

And since it is the seller who pays the bills... how can any of that "lessening" be justified?

Aug 06, 2013 06:26 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

If you list like a little red hen and have realistically priced properties of all types, locations you can build quite an mls within an mls and herd less to the big three RTZ. If you link to the bigger portals it is only driving more exposure to the front page index you need to be on top of not you know who that charges you for better position with your own information you work so hard to provide. The mls scrape leaves a lot to be desired with missing narrative fields to differentiate the property from others with just yes, know, number fields too. Good post.

Aug 06, 2013 06:41 AM
Tamra Lee Ulmer
Arizona Resource Realty - Payson, AZ
NRBA ~FORCE~ Over 1000 REO Assets SOLD!

Richard, very interesting food for thought you have shared. Have a great day!

Aug 06, 2013 06:55 AM
Kim & Kristine Halverson
Compass - Santa Monica, CA
Sisters, Realtors

In reality, you still need a key to get through the front door! Howver, I understand your point. The bright side is consumers are more empowered, and we have many tools to access for information. Ultimately, a professional is needed to make sense of the data, and navigate consumers through the process. 

Aug 06, 2013 08:03 AM
Laura Filip
Laura Filip Broker , Opening doors for All Seasons of Life - Whitesboro, TX
What can we do for you today?

Great post and very thought provoking indeed. I have long since wondered how all of this would come out in the wash. Data they need comes from the listings we seek out, One comment stated the buyer was in the drivers seat, with out the property being available there in no seat for the buyer to be sitting in. The local listing service was set up to guarantee the buyers agent a commission to allow us to work together to ensure payment at the close of the sale. It has long since been the time when that was the only use for it. We now set out solds actives withdrawn expired ect ect ect. The data is used to set price points ect ect ect. It may well be in our best interest to work together to make sure the data that is given out is limited to those that look out for our best interest, is that the Big T and the Big Z ? Who really looks out for the interest of the Agent and or Broker in all of this? It should be NAR and our state organizations is it? A question yet to be answered!

Aug 06, 2013 10:56 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

  This is an interesting topic and one which bears watching.  I am standing by to see if and when the R.com changes occur... what impact it will have, if any on Zillow and Trulia. 

Aug 06, 2013 11:38 AM
Kimberley Kelly, SFR, HAFA, GREEN
HK Lane, Christie's International Affiliate, 760-285-3578 - La Quinta, CA
I do Real Estate like I played polo-to WIN!

This is interesting and a topic I hadn't thought about too much.  I always remind my clients that Zillow, Trulia and Redfin are not as accurate, but why not throw them in the mix?  Nothing like boots on the ground for true accuracy!

Aug 06, 2013 11:53 AM
Michelle Vickers
HER Realtors Worthington 614-353-3698 - Worthington, OH
Prompt Professional Proactive

I agree with Karen Anne Stone, I will continue to expose my clients property to the greatest number of buyers possible...

Aug 06, 2013 12:18 PM
Greg Nino
RE/MAX Compass, formerly RE/MAX WHP - Houston, TX
Houston, Texas

Richard,

 

I'll be more than happy to dance on the graves of their companies. We'll get fat as elephants and drink wine and eat steak! Burn in hell Zillow.

Aug 06, 2013 12:54 PM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

Don't see it happening myself. Too many irons in the pot now. Internet has changed the rules. Oh well.

Aug 06, 2013 01:18 PM
Kate Elim
Dockside Realty - Spotsylvania, VA
Realtor 540-226-1964, Selling Homes & Land a

Hi Richard...Just today I received a request for information that a prospect found on one of those sites. It went under contract on July 26. When I shared that information with her she was more than willing to have me send her currently active listings. Sooner or later many find out that there's nothing like working directly with a Realtor.

If agents did not pay for their leads or pay to advertise on these sites we wouldn't be in such a mess. 

Kate

Aug 06, 2013 01:51 PM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Richard: I see a lot more brokers open here right after properties are listed than open houses. That means the "agent reciprocity" works well.

Aug 06, 2013 05:44 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Richard - I think this is one of the best written posts, which caused an excellent comment thread. I am with Chris Hardy (what a great comment, BTW)

Aug 07, 2013 12:22 AM
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Author Bio: Richard Weisser is a Georgia real estate broker, licensed auctioneer, and has been writing about Georgia Real Estate since 1999.

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