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It is tough enough to compete with the 1.4 million licensees for buyers and sellers, but add the proliferation of discount brokerage houses, and online options, today's true professional has a challenge to differentiate their services.

Discount services have a place in business today. If you seek a 5 star dining experience you won't be checking out the fast food establishments. The same applies to our real estate services. But the questions are: How valuable are your services to the consumer today and how can you communicate that differentiation in a crowded, agent centric marketplace?

If the consumer is looking for low cost services, and unaware of the many issues that can complicate a sales transaction, they will surely get what they pay for. On the other hand, for an informed consumer, the risks that can accompany a botched transaction far outweigh the costs, and value over price will win every time. This has a better chance of happening if the consumer is presented the full spectrum of services and credentials that allows them to make an informed choice as to what they will choose to have or not have.

The challenge for dedicated, professionals with superior expertise and service models have today is differentiating themselves from the crowd. Just how can you set yourself apart from the low cost, minimal care and short service providers?

Marketing might be the first answer. Consumer centric, stealth marketing is proving to be more highly effective than the traditional gazillion dollar producer ads with glamour shots and nifty little slogans. Reaching a smaller more concentrated target market communicates expertise and specialization. If Starbucks can revolutionize the coffee shop model, you can do it in your marketplace as well.

The historically sound strategy for agents with a glistening track record is personal referrals. Yet a staggering high percentage of agents neglect the past client relationship or provide spotty and inconsistent after the sale systems to keep the client for life. We must implement turn key Client Relationship Management systems that keep our services in the mind of our customers after the sale to secure more repeat business and an endless stream of referrals.

The fact is our industry is changing, but the needs and wants of the consumer have been eternally steadfast: Expertise, superior care and communication with high integrity professionalism is what just about everybody would want when making such a critical personal or professional property acquisition decision. No matter how the market changes, people will seek out those services where trust is more important than dollars. Specialization and true experts are rare and pursued in every field, and the successful survivors of this transition will be the expert real estate professional. Our challenge is to redesign our service model, present deep and compelling "opening ceremonies" to inform the consumer of the value of our services and provide the strategic marketing to help them find us.

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And everyone said "AMEN!!!" Couldn't have said it better except to throw being a mother into the mix. There are definitely some who do not do the work & deserve to be critized, but for those of us who do. . . WE ARE WORTH IT! And we need to make sure everyone around us knows it.
We've obviously profiled a subject that has fueled some passionate answers. The real test is whether or not the consumer will continue to pay for services that they feel are not comensurate with the level of service they expect. As new entities continue to dilute the service platform presently performed by agents and their companies, it won't matter what we think our value is to a transaction until the CUSTOMER sees and experiences a level of "brand insistence" and would not even consider navigating through a real estate transaction without a truly trained professional. Human nature allows when faced with a situation where expertise is critical, cost is rarely a factor. When this type of national commentary is published, it provides a clear indication that it is time for us to ramp up our service model, develop authentic expertise in our given areas and provide unparalleled customer service to maintain our value to the transaction. Even though there are plenty of "do it yourself" real estate programs available, there is only a certain segment of consumers that have interest in handling their transaction themselves. There will always be room for the Nordstrom model for those that choose quality and expertise. As an industry, we need to get up to speed and fast, in order to see this kind of negative publicity diminish
wow, criticize anything relating to the real estate industrial complex and you'll get your comments deleted here. Only a realt-whore would do that. I thought blogs were about free speech and debate
darn right we're worth our commission! and no internet or competition will stand in the way of us making our god given right to commission! disintermediation my sweet patootie! realtors are here to stay hey hey ho ho naysayers have got to go!
The realtors I see are not worth the $15000 they are paid on a $500,000 house. They do a total of 5-10 hours of total work on a transaction. They don't spend any money on advertising. The MLS sells the house, not the realtor. Most are lazy SOBs. I see listings all the time that say stuff like "MAY be able to subdivide, buyer should check with county." Isn't it the job of the realtors to verify information like that?? What are they getting paid for? That's like a car salesman saying a car "may have a V8 engine, buyer should verify." And then there's the illegal kickbacks from mortgage brokers and title insurance companies. Realtors have to be the most overpaid "profession" there is. Enjoy it while it lasts because most will suffer the same fate as travel agents. Some Realtors will always be around as there will always be some braindead people who need to have their hand held during a transaction, but the internet is going to put a lot out of work and lower commissions. It'll go to a flat rate or hourly structure.
You have got to be kidding, the commission system for RE Agents is an antiquated notion from a bygone era. Those agents that I have had the misfortune of running into bring little to nothing to the equation. If some of you out there are delusional enough to think that hanging up a sign and entering the details of a property into a database justifies you to 3% of a properties sale price + another 3% for the dazed and confused woman who’s qualification seems to be primarily that see can follow the instructions on her car navigation system, and be sure to smile as she reads the information that the first RE agent had placed in the database. The model for this type of transaction will soon be following that of the now extinct travel agent.
Here's a problem for you: Why would a prospective home buyer employ a realtor on commission? This incentivizes the realtor oppositely to the buyer's desire. Wall Street gave up this incentive structure a while ago, which is why stock purchases are now flat rate commissions.
yeah, realtors are worth paying $50,000 for a few hours work. High priced hookers are sometimes worth it too I'd guess One word - disintermediation. The realtor profession is toast. find something else to do
I believe that the majority of realtors do not do a good job of proving their value and justifying what for most sellers is a large amount of money for listing and selling a home. Some realtors do not deserve what they are paid, and some who do deserve what they are paid do not show or tell their clients what it is they do for their hard earned money. If we all did a great job for our clients, and showed them in detail the many many things we do for them, we would have less of an issue worrying about discount brokerages and on-line services. Most sellers will pay for a full service realtor without concern if they know there is value.

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