The Life and Death of Buyers’ Brokers
AM 570 Podcast
Column from The Wave
Like every other industry, the real estate profession has been forever changed by the Information Age. Today, instant information is in the palm of your hand. Unfiltered access to both current listings and recent sales has revolutionized and enhanced the experience of both buyers and sellers when entering the market.
Years ago, this essential information was closely guarded by real estate brokers and their agents. Back then, if you were thinking about buying or selling a home, you would first need to visit a local real estate office. Inside, a licensee would selectively choose which information they’d share with you. With little qualifications beyond holding a license and being an MLS member, new agents and part-timers sought a fast and easy way to make money. In most cases, you walked in to commence the largest single financial transaction of your lifetime while the next agent on the office rotation was simply playing a numbers game. As the gatekeepers to the MLS database, these agents held much power and wielded tremendous influence over the market. Their solitary goal was to get paid on as many transactions as possible. Quality was replaced by quantity and the only beneficiaries of this misguided culture were the gatekeepers. While it takes skills and money for a broker to launch a comprehensive marketing campaign for each individual listing, it doesn’t take much of either to subscribe to the MLS method. Simply possessing a relatively easy-to-get salesperson’s license, and paying for an MLS membership, enabled many agents to make money without really earning it. This cultivated a sense of entitlement by the gatekeepers who developed an insatiable appetite to get paid on as many transactions within their “territory” as possible. Today however, in most cases, and thanks to the free flow of information, there is very little need for the MLS and the Buyer’s Brokers that it enables. Who today really needs a real estate agent to access information? Who doesn’t have the time, or interest, to find and view listings of what might be their next home? Who in today’s day needs an agent to inform them about school ratings, restaurants or transportation options in a particular neighborhood? Of course there are always some rare exceptions. Unsurprisingly however, a recent National Association of Realtors study found that 97% of homebuyers today begin their search online rather than by going directly to a real estate broker to access listings. As buyers are now generally finding the listings themselves, the unsuccessful and mediocre agents are scrambling.
Many agents have now resorted to paying companies like Zillow and Realtor.com to deceive and snag buyers. For instance, when buyers find an interesting listing and click on “more information” or “schedule a viewing” or “contact agent”, they’re deceptively redirected to some random “Buyer’s Broker” who knows nothing more about the listing than the next person. All they did was simply pay the website to intercept and redirect that lead. So beware!
A broker’s fundamental job is bringing together buyers and sellers; It isn’t bringing buyers and sellers to other brokers. Good brokers bring the market together and understand that brokers are not the market. The best agents and brokers stay busy by earning referrals, not by stealing leads. They respectfully and honestly deal with both buyers and sellers while guiding them to achieve a common goal. They add value and remove stress. They freely share information with the public and never deceive people. Thankfully, we’re no longer held hostage by a profession that’s disproportionately filled with unprofessional and unsuccessful licensees seeking their next bonanza. The profession is evolving. Buyer’s Brokers need to go.
