I wrote a blog earlier in the year regarding all the new real estate listing sites and asked if these companies were the Realtors friend or foe. Many AR members thought there was nothing wrong with these sites and thought I was over reacting.
Referring to themselves as the "Future of Real Estate", a site by the name of RealUmbrella will debut on September 25 of 2007 which will allow sellers and buyers to negotiate via this site and cement a contract.
Bryant AKatzen and Michael Updegraff created Real Umbrella and have patented this new process. Sellers that list their home through Real Umbrella will be able to list their home on this site and view comparable listings to establish their asking price. From this site they will be able to post their homes on Zillow and Trulia, schedule open houses, and attracted buyers for their home.
Once the buyers locate a home they are interested in, Real Umbrella will guide the buyers and sellers through the selling process and assist them through to closing.
Real Estate Journal wrote the story Real Umbrella to debut this a.m. and posted it on the front page of thier site. This is not the first time that real estate sites have attempted to by-pass the Realtor. This is just another example of how Realtors are "Feeding the hand that wants to destroy Real Estate the way we know it". I am referring to the use of sites like Zillow, Trulia and others.
I highly recommend you educated yourself on the entire process of Real Umbrella so you will be well versed and be able to answer any question that will come up. I am sure Real Umbrella plans on launching a huge advertising campaign.
George - I will have to check out this article you are referring to in your post. I find it very interesting since I am most recently trying to educate myself about the direction real estate is going and to have a greater understanding of the impact of services without an agent. How it will effect my business.
Thoughts come to mind when I hear about companies of this nature and it seems to me that we need to educate the public more and more the 'value' of a Realtor. There are many avenues now for consumers to use companies such as the one you mentioned. I do believe we need to be 'one' voice and help educate the consumers, past clients and current clients that we bring more to the table allowing us to represent them and we are 'valuable' as their agent/broker. This post idea has been stewing in my head for a while...Thank you for sharing this link. I think you are right on that we need to study up and research!! I have been the second listing agent on a couple of homes I listed more recently after they made their attempts to go with a similar company like you mention.
George,
I'ts a free world but this is just another Redfin angle...I'm not even going to comment further or I might get mad:)
George - I read an article yesterday on Broker agent News which spoke about the end of the real estate agent as we know it today. It is not a secret, many have spoke of our demise in recent years and how the internet has changed the need of a Realtor.
I do believe we either need to know the value we bring to the transaction and prove it each and every time - or get out of the business! There is downward pressure on our income and enough news out there about how overpaid we are. The consumer wants to know what we do for our pay.
Now is the time to either know your value and become an expert in a niche market or count your days! This type of online marketing will continue and there will be those who will take advantage of it. It will be a slow growth but I believe they will find impetus in the current market where many are looking for a way to save money since they are already upside down or close to it.
Sorry to be long winded - I feel a post coming on............................:)
Aziz - I agree 100% as you can read in the comments
Sam - I could not have said it better myself. I certainly have tried hard to protect our industry and this is one more of my attempts to contact our peers and wake them up to what is going on around us. From the beginning of the year I voice my concern about these real estate posting sites that claimed to embrace the real estate industry.
George: At the first WHIFF of money (and what is imagined as "easy" money) someone will open a business. Time will tell if these concerns are friend or foe.
I admire you Realtors who have faced famine and now locusts. Pioneers you must be, and must remain! Beyond that, we must educate ourselves, and we must never stop learning. Knowledge is power; use it or it will evaporate.
That's the second time tonight I've quoted this. I heard it from Dee Dee Marble at a B&B conference about a hundred years ago. Her quote stuck with me. So true. Like the seven years of French I studied but have not practiced, my ability to wield a curling iron is long gone!
Thanks, buddy. Always nice to hear you AR "voice".
Cheers! from DC...
Jaynee
Thank you for posting this George! I'm going to check it out.
Maybe it's these types of sites that will eliminate the part time agents and in the long run help those agents that really do provide service and want to devote all of their time to real estate?
George,
The companies are entitled to start any kind of business model...whether it will work will....I do not think so...they are just riding on Trulia and Zillo's coat tails...and quite frankly...from what I see of Zillow...it is an interesting site but I do not believe their figures are accurate.
Hi George,
It sounds like another "Zillow" except this time they really do cut the agent out of the process, not just provide CMA advice. I'm with Neal - the concept is progressive but I believe all real estate is local and they will have an uphill battle making this business model work.
Jaynee - You are always so thoughtful in your comments and I appreciate you. Have a great day.
Candace - Thank you and good luck with everything.
Ana - We shall see where goes. I do believe there will always be a place for the true professional.
Neal - I understand your point and I don't give them much chance.
Tracy - I do believe they have an uphill battle and they will never compete with the true Real Estate Professional.
Allison - Thank you and it is good to hear from you.
Gita - Very true my friend.
Paul - This is very true...thanks.
George, reading everyone else's comments, I just reiterate what has already been said, thanks for bringing this to my attention.
I need to be more proactive, and this will surely help.
George,
Thank You for educating us about a new "fad" in real estate. *illow is an attempt to render the appraiser and the realtor useless. Now they come up with *eal*mbrella to render the realtor useless again! We know that most sellers and buyers would not like to do all the work themselves. They are under the impression all realtors do is locate property and negotiate price, not realizing we negotiate more than price. The internet has already changed our business. We are dealing with more sophisticated buyers and sellers. It is our responsibility as realtors to show the depth and breath of our duties and responsibilities. I think we may have shorted on this responsibility which is why there is a lot of misunderstanding about the scope of our service. As a profession, we need to address this shortcoming. We need to find means and ways as a group of professionals for the general public to understand that we ARE professionals who perform a valuable and substantial duty.
At least give them credit for not expounding that our MLS is a public utility to which they have a right of access.
I respect that they are offering a separate service and venue, not promoting themselves as agents, and not claiming a right to negligently enter listings on my local MLS without representation or agency responsibility.
Maybe they will survive well enough to demonstrate that there is room in the business for alternate models, as evidence to DOJ that we are not monopolists. I wonder how many people will be hurt in the process?
Thanks for posting, George.
Marie - Thank you and I hope you have a great day. I appreciate your comment.
Dwight - Very well said and thank you!
Mike - You are gently and kinder that I am!
I guess I am the minority here, in that this type of model does not scare me or worry me. FSBO's have been around forever as have limited representation listings. This is a new version of this old take. MOST people want and desire help from a real person. Real Umbrella will work for some, but not for most. Most people want more hand holding and advice in the process.
Agents need to remember that our value not lies in putting someone on the MLS. That is the least skillfull thing we do. Pricing, staging, getting a house ready for sale, negotiating, pointing out obvious defects, issues, resalability, and advising are what we are really paid for. I agree with Billy B in that people are too busy for the intensity of selling a home themselves, and are willing to pay for someone to do it for them. I think competition is good for the real estate market, and I am sure Real Umbrella will do just fine. Last I looked at the NAR stats, 84% of buyers and sellers used a real estate agent. Real Umbrella is perfect for the remaining 16% of folks. Not a bad niche, but I don't think it's anything to worry about.
There are going to be many buyers and sellers that end up regretting their decision to use this service. There will be some that will do fine with it, but as Realtor I don't much care for these type companies. I think they decieve people about what they do (and what we do-they certainly don't try and shine a positive light on Realtors).
I find myself wondering just what kind of agent the creator of this site is if he has such disrespect for what real estate agents bring to the table in terms of value? After all, if he was an agent from ages 21 until now, he must be basing his opinion on what HE brings to the table, correct?