Is a real estate agent just a gatekeeper of information?

The entrance of the Internet into today's real estate industry is making investment specialists and newscasters alike speak of the death of 6% full-service commission brokerage services and a new reality to real estate. 

This week I came across three pieces that reference this New Age tune of real estate agents as the gatekeepers of information.

In "A new reality for real estate agents", Money Magazine senior writer Stephen Gandel describes the services of real estate agents as information doorways. The advent of popular websites that provide real estate home values and the popularity of do-it-yourself real estate websites like FSBO.com are making homeowners take a second look at the real estate landscape and empowering them to save money and "go it alone."

Then I read this blog post, "Ambulance Chasers Attack Realtors", in which Gretchen Faber, Realtor and blogger, discusses a new ballot initiative by the Colorado Association of Trial Lawyers to put restrictions on the commissions charged by real estate agents. 

The last update from Gretchen is that this initiative has been nipped in the bud.

Finally, adding insult to the reputation of real estate agents from a real estate agent, this blog post, "Take it from an agent -- sell by owner" discusses Dr. Dani Babb's advice to real estate sellers, which is to save the commission and sell FSBO (For Sale By Owner). Dr. Babb's description of selling makes it seem as simple as learning your ABCs. Babb's belief that the Internet can sell your home and save you thousands fuels her words to advise homeowners. Did I mention she is a real estate agent?

What is true about this New Age reality?

• It is true that marketing your house on the Internet is essential. If you rely solely on newspapers, signs and word of mouth, you are missing the boat of opportunity.
• It is true that honesty, integrity, professional reputation and local market knowledge are the pillars of a worthy real estate professional. If the real estate agent you interview doesn't embody these qualities, go fish.
• It is true that there are a range of real estate commissions available. It is also true that you get what you pay for. If you don't mind putting the bags in your shopping cart yourself--go to Wal-Mart or Aldi. If you are looking for a greener choice, Whole Foods might be a better option. If you need the full scope of services from A-Z, then you need Meijer or Jewel-Osco to deliver the goods.

What is not true about this New Age reality? 

• Real estate agents can be replaced by the Internet. Online information is a good first and continuing education course in real estate. However, much like the fields of medicine or home construction, there are several hours required out in the field to get the desired results. What is the value of your time?
• Real estate agents charge way too much money. I have come across this type of comment more than once online. Thoughts are floating in cyberspace that all real estate agents do is ride around in Mercedes Benz, collecting easy money. There are hard-marketing, analyzing, driving, negotiating and real estate-sale-making dollars directly equated to the commission paid. What kind of money do you want to spend to get your house sold?
• Real estate trends are national in scope. If no one has ever beat this drum for you, please allow me: "All real estate is local." Would a 3-bedroom, 2-bath house in the Tribeca neighborhood of New York City sell for the same amount as a 3-bedroom, 2-bath house in Schaumburg, Illinois, or Plano,Texas? I think not. Why would anyone make their real estate game plan based on a national prediction? Similarly, how can a relocating transferee take the advice of a homeowner who plans to live in their house for the next 10 years? What expertise is based on years of education and real estate success in your local market?

Everyone's got one. What's your opinion?

I have dropped my three cents in your lap. Now it's time to hear yours. Are real estate agents just the gatekeepers of information? Voice your opinion by commenting or dropping a line.

If you enjoyed this post, you might want to read:

• Five topics to cover before you choose your real estate agent
• Real estate commissions: Is it all about the benjamins?
• Home sellers: What you need to know before you decide to sell your house on your own

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Posted by Rebecca D. Levinson

Comments

[West Toronto realtor]

I must agree with you that the online real estate services can`t replace the real estate agent. I have been a Toronto realtor for several years and I think the internet provides the essential information the buyer or seller needs to know and also is a great advantage in speeding up the process. However everybody of us know that agents are essential by negotiating procedures, to get through the process smoothly.