Changing Times for Real Estate Brokers

The playing field has changed for real estate agents, as consumers have gained access to online tools and technologies that previously were reserved only for licensed professionals. To keep up with the times, agents need to remain relevant and needed. Otherwise, savvy buyers and homeowners may opt to go it alone.

Today's real estate consumers are able to take advantage of resources that used to be within the exclusive domain of licensed real estate professionals. The multiple listing service (MLS), for instance, can now be accessed by anyone wanting to use it to search for listings or compare prices. New and different tools, including those offered by sites like the wildly popular Zillow.com, let buyers and sellers act without agents.

Self-sufficient consumers

With the economy more challenging, and consumers looking for any possible way to cut costs, the threat to realtors is daunting. The average homeowner can simply use a home computer to find a house, check comparable prices, and apply for a mortgage. Many even tour available properties via video footage posted online rather than making appointments to see them in person with the help of a broker.

The phenomenon of leveling the playing field by giving consumers free access to valuable info has been described as the "democratization of data," and the term eloquently sums up the changes. Knowledge is power, and in the past, the only way to get it was by paying a real estate professional. Now, consumers can just "google" their way to greater independence, and that trend should make many already hard-pressed agents and brokers nervous and uncomfortable, to say the least.

When realtors are invaluable

Realtors who make themselves indispensable have little to worry about, however, as long as they stay ahead of the learning curve of their clients. Knowing prices is one thing, but knowing how to negotiate them is quite another skill, and one that's worth paying a premium for. The best realtors earn their commissions by solving problems, negotiating better terms, and offering experienced guidance and consultation that's worth every penny that they're paid. When unscrupulous mortgage lenders started peddling risky mortgages and mortgage refinancing schemes during the last bull market, for example, buyers or homeowners who had wise and honest realtors were less easily victimized.

Those who merely plant yard signs, install lock boxes, and show up at closing to collect their checks may get weeded out of the business as consumers take more control of information technology. That will be a good thing for consumers, who deserve their money's worth when they hire a real estate agent. It will likewise be a welcome change for those hardworking and resourceful realtors who survive the shakeout, because they serve clients to a higher standard. Maybe they'll have to adapt, but adaptation is what makes the good professionals great. Democratization of real estate knowledge and information will only make for more informed consumers, and that kind of democratic reform is always timely and beneficial.