By Jared Jones
#1 Selling Team Southern Nevada 2013*
Yep. You read that right. Industry experts (NOT outside pundits) just called for your extinction in the next 24 short months. (Don’t jump out the window yet – I am going to tell you how to get around it!)
Ok – so, why will we be annihilated? Simple – Zillow will build on its omnipresent image in our industry. THEY will build a brand so strong that, the customer automatically assumes that – Zillow is where I go to find a home, or if I am seller, that is where I turn to find a buyer. It’s pretty simple right?
Why call an agent when I can expose my home on Zillow and getaway without paying agents commission. Let’s face it the typical real estate client/customer is NOW effectively TRAINED to GO THERE FIRST to do their entry level research to gather their plan when buying or selling . AND if this really is true, why not just bring the business there, right!?
What about the naysayer – “Well, some people still need contract help”… Oh c’mon. Don’t you think Zillow will adapt to that? It’s only a matter of time until someone in a board room somewhere says, “Mr. Chairman, why don’t we sell access to low cost fixed fee attorneys to be leveraged to help with these deals, and Zillow has a whole new constituency and then the consumer things.” – Well, Zillow can handle the marketing AND an attorney MUST be better than a knucklehead Realtor that goes through 90 hours of education right!?
Look – I am not here to cast doom and gloom here… BUT I do want you to know some things about a capitalist society – those that don’t adapt, get run over, put out of business. Overnight.
1. You have to commit to your real estate career as a known local brand and never let go of it. This may seem like a basic statement – but it’s not. You see, some folks “THINK” they are committed, but they aren’t. They come and go. They take summers off. They don’t adapt when the market requires more of them. Their customers FORGET they are in the business because the agent NEVER stays in front of them through any type of contact. You will not be able to afford to survive if you don’t put a line in the sand now, and decide, you are a lifer and that everyone knows it. The consequence of doing this will be your exit from the industry , bankruptcy or both.
2. You have to know marketing on all levels (OR have a broker offering you the sign and drive systems to compete). Look, you would say, I am just going to lead generate from Zillow. You could but would you buy leads that cost you 35% to 70% of a sale or more? Trust me, the more valuable the brand, the more costly it will be, and you will be paying A LOT to live on a minimum wage level real estate business in Las Vegas if you don’t. I know that the low cost independent brokerages AND those that have outdated models of marketing, are literally filled with agents who are starving to death for lack of opportunity and I am not knocking them but the old adage is that you get 100% but 100% of nothing is ZERO. See, you can stay in that model anywhere in town, but if you aren’t reinvesting those savings into raising your understanding of cutting edge level marketing, you will be FORCED to buy your leads from Zillow and their syndicate and that is if you can afford to, which according to the BI article, 80% of the market won’t be able to.
3. You MUST learn how to set your fee with both buyers and sellers. This is so critical. Buyer’s agents, have no idea what the future holds for them. If you are practicing like the rank amateur of “I will just earn what is offered in a listing” and you do not have a thorough knowledge of how to negotiate and get your fee out of the deal JUST LIKE a listing agent would, then your days are numbered. There are already stories of agents listing homes in markets for hundreds of dollars, and there are industry leaders (besides yours truly) predicting the day when the offered amount in the MLS will be 0% coop. Sure, I know what you will say – Oh, they will have to offer it because it won’t get shown, and that is because you are thinking in today’s reality! But when a marketplace sets new norms, there will be no need to offer more, AND if you as an agent can figure out a way to help that buyer WHILE STILL getting your fee, then that buyer WILL (with help of Zillow and others) get to the front door without you!
You should know that as an industry that this merger is going to affect you negatively. Appreciate that I gave you some specific things to focus on. There is a solution to all of this so that you can move towards the front of the pack.
All of these problems can be solved for you – there is plenty of time. If you want a free report on how to make sure have prepared yourself to the highest extent possible, email me for a free report at firstname.lastname@example.org or call 702-496-5000 for a private consultation.
*Sales team, highest sold ranking for Clark according to Real Trends/ Wall Street Journal