“It’s not just that fewer people can do the same work, it’s that they don’t need a big company to provide the infrastructure to do the work, in fact, they may be far more efficient without the big company and all the inefficiencies and stumbling blocks that its bureaucracy and techno-structure seem to produce.”
Price concludes with this warning to traditional real estate agents “who don’t get it:”
“This new paradigm of singularity powered by technology and changes in social structures can not be denied, so you’ll have to ask yourself if you’re prepared to sell to a client that is all too familiar with the concepts.”
At The Real Estate Cafe, there is no such thing as a client who is “all too familiar with” Web 2.0 or the real estate market 😉 In fact, we assume our clients know more than us about the local housing markets some of them have been monitoring for more than a decade using the internet and good old-fashioned word of mouth. That was the case this morning with our latest buyer client.
Unfortunately, what some of tech-savvy house hunters don’t realize is that the rules of the current real estate industry sometimes penalize self-reliant, do-it-yourself’ers who wait too long to ask a buyer agency willing to rebate 2/3rds of the buyers agency fee, like Redfin; or rebate 3/4rds of the buyer agency fee, like BuyerSideRealty; or rebate 100% of the buyer agency fee, like The Real Estate Cafe to represent them.
Until real estate commissions are uncoupled, and buyer and sellers agents negotiate separate fees independently with their respective clients, web-savvy homebuyers need to be equally savvy about inadvertently forfeiting thousands of dollars in rebates by communicating directly with listing agents, online or off, who are always eager to collect both sides of the obsolete, two-sided real estate commission. That’s part of what is keeping the bloated real estate dinosaurs, Reynolds pokes fun at in his statement above, profitable. As they fall under the weight over their own inefficiency, a new generation of “micro-brokers,” with modest or minuscule overhead costs and reasonable consulting fees, will gladly help “An Army of Davids” save an estimated $30 billion dollars annually.