The Jumblog

It’s official, online brokers will now have access to all MLS listings based on a settlement reached today between the Department of Justice and the National Association of Realtors. Since this means we will see more clients represented by online reps, I felt I had to comment on this type of service and the effect they are having on the real estate industry. I apologize for another “non-technical” post but this just had to be said.

When you first walk into a class to begin education to get a real estate license, what is the first responsibility the teacher drills into your head? Realtors have an ultimate responsibility to THE CLIENT first and foremost!! I repeat - the client and their best interests are #1…

This is the worst type of professional representation snafu that I have personally seen in 22 years in the business world. I can certainly see the allure of a seller thinking they might save some money with an online broker (although on average they do not); but I urge you to speak to a licensed Realtor in your own area, that you can touch, that knows the area, that can accompany you on a home inspection, that knows the up and down side of specific types of homes in specific areas for resale value, etc…

Now don’t get me wrong on this - I do not have a problem with an online brokerage gaining access to the MLS, or even assisting a buyer or seller up to a certain point with some general real estate terms. However, I have a HUGE problem with a person on a headset (sitting in a boiler room in another state) holding themselves out as an exclusive buyer or listing agent when they have never set foot within 100 miles of the desired property!! Someone who has never even seen the contract for a specific state yet feels they have the expertise to guide a client through the pitfalls of every paragraph of a twenty page offer of purchase!! How is this making the client #1? How can an individual honestly help a seller sell their home in any kind of professional manner without ever seeing the home? Without seeing the neighborhood, amenities, other houses on the street? How can that same individual help a buyer make the biggest purchase of their life when they cannot see the home and know if it matches the needs of the buyer?

There are already too many nightmare stories of clients of these online brokers getting killed for five figure losses on a sale or a purchase. A seller who thinks they did great by paying a $2,000 flat fee to list their home and netted $350,000; only to find out that a Realtor with a similar listing on the same street has gotten his seller $400,000 and netted them $26,000 more!

Or the person who buys the money pit because they had no representation at a home inspection, or anyone to tell them that a certain type of home has horrible resale in a certain area, or who pays list price from a builder only to find out that a Realtor knew of another builder who would have sold them the same home for $50,000 less on the price plus a finished basement!

If you are up late one night, after three glasses of wine, and want to know the current ballpark price of your home or what might be available to purchase in your areas — then the web is a great source of information. When you actually want to participate in a transaction, do the smart thing and find a quality Realtor who works and lives in your area and can give you the quality service and representation that you will need through the entire transaction!

**Disclaimer - I am not saying that all agents will perform the same. As in any profession, there are great agents and there are lemons. However, the answer is not to use an online broker who knows nothing about houses or your area of interest. The better answer is to ask around and find an agent who does do good work and will earn every penny of their fee, and give you the quality representation that you will need during your transaction.