The Internet Will Replace Realtors - The Fatal Flaw.....

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Real Estate Services with LifeOhm - Life Coaching for Real Estate Professionals

The Internet Will Replace Realtors - The Fatal Flaw.....

Relationships Are KeyMany of you remember the concern and controversy that came up several years ago when sites like Zillow and Redfin came on the real estate scene. They aren't very involved in our state but it still made local headline news.

Some people said, and still say, "the internet will replace Realtors" and "Real Estate Services will become a commodity."The theory was that people could appraise their home online and then buy and sell themselves, saving money by cutting real estate agents out of the equation.

This theory had a fatal flaw however,as Redfin discovered with its Internet Only approach to real estate. The real estate buying and selling process is often an emotional one, and is rarely "cut and dried".

While consumers like data and like to be able to research real estate and the market themselves online, they value relationships more. And, in the end, they turn to a Realtor (R) that they know and trust.

Redfin is a great example of this point, even during the recession, their user numbers continued to increase. However, they found that an increase in users did not necessarily translate into more paying customers. When people are ready to buy, they generally work with a Realtor(R).

So, in February of this year, Redfin announced a marketplace for agents with data-driven agent profiles. They will work to combine both data for consumers and the personal relationship of working with an agent.

While companies like Redfin and Zillow won't replace real estate agents, they do provide a valuable service in helping to educate consumers, and helping to make Realtors(R) better. The new scoring system that Redfin is creating will be an interesting study. Their goals are altruistic in trying to use data to benefit consumers and they have become a good resource for agents.

With all of the changes in the real estate and mortgage environment, using data to help all of us improve can only be a good thing.

To Read More:

Redfin Creates A Marketplace for Agents

Scarlet Letters and Dying by the Sword

Video clips of Redfin.com CEO Glenn Kelman from the BloodhoundBlog Unchained preview event in Seattle

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Re-Bloggged 5 times:

Re-Blogged By Re-Blogged At
  1. Sandy Childs 03/17/2009 10:13 PM
  2. Jean Terry 03/17/2009 10:26 PM
  3. Donald Bradbury 03/18/2009 06:36 PM
  4. Donald Bradbury 03/18/2009 06:36 PM
  5. Elliot Sirota 03/18/2009 09:30 PM
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Tags:
future
real estate
redfin
zillow
internet
service
data
customer
client
realtor

Comments 80 New Comment

Rainer
37,443
Kathy Booth, Setting the Stage
Home Staging and ReDesign Professional
Setting the Stage

Clients that want to be educated with data is one thing but it cannot replace face to face contact.

March 20, 2009 08:18 AM
Rainmaker
19,486
Winston Westbrook
Westbrook National Real Estate Co

Great post guys. I hope we never get replaced by some websites but if we do then we will have to start a Zillow of our own lol

March 21, 2009 11:49 AM
Rainer
54,676
Kelsey Barklow
423/948-9154, Marne Drinnon 423/202-2277
Evans & Evans Real Estate

Excellent customer service is still alive and well. Thanks for your post.

March 21, 2009 07:39 PM
Ambassador
158,090
LifeOhm
Monica at LifeOhm
LifeOhm - Life Coaching for Real Estate Professionals

Hi Jenny - sounds like Redfin is a great resource in your area, very cool.

Benjamin - good point.

Thanks Winston & Kelsey :)

March 23, 2009 07:08 PM
Rainmaker
83,001
Winter Baserva
Realtor -Homes For Sale, Atlanta, GA
Seasons Realty Group of Solid Source Realty, Inc.

Also, one of the things I think consumers are becoming more aware of is that A LOT of the information out on Zillow and Redfin is inaccurate. Since there is no TRUE regulation, after they drive by a few homes that are listed "for sale" only to find out there are new owners living in them, they turn to the professional who knows the most accurate info.

April 08, 2009 12:04 PM
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Life Ohm is about living a passionate, intentional, healthy, peaceful and inspired life. I’ll share information on ways to make your road more enjoyable, your goals more attainable, and reminders about having fun and savoring life along the way. I work with individuals - including real estate professionals and executives to help them live a more happy and fulfilled life. I’d love to hear your stories on success, inspirations, and feedback – so please feel free to share!