Kevin Boer over at Three Oceans Real Estate topped the Carnival of Real Estate at True Gotham with his post “Why the Internet will never disintermediate Realtors”.
While the Internet has empowered consumers - both sellers and buyers alike - it can not replace the human factor in the real estate industry.
In my previous post “Can Discount Agents Save You Money?” I showed how - in spite of the Internet - a seller could be penalized for their ignorance. Note I wrote “ignorance” and not stupidity. The sellers in my vignette were anything but stupid. They had bought and sold many homes in their lifetimes, including investment properties.
While doing a little research regarding this subject, I found an online broker that serves four states, including Georgia. They list properties in the MLS for a fee of $349 ($275 if you pay by PayPal).
In their listing agreement, they place the entire legal burden of the listing on the seller. Although they do have tips and advice online regarding Fair Housing Laws, you would almost need to complete a course in real estate licensure to wade through the details with any degree of understanding.
Add to that the other factors such as pricing, marketing, and negotiation expertise - and you can see why these sellers are more likely to fail - than succeed - using this approach. Of the listings that did sell, most involved another Realtor - someone who guided both parties through the transaction.
Unfortunately, our profession as Realtors has been tarnished by the sheer numbers of new licensees that are churned out of the real estate schools each day. It’s no wonder that many people believe they can do as well without the assistance of Realtors - but that number is still in the minority.
My mother used to tell me, “If you think education is expensive - just try ignorance.”