Is The Value of An Agent Going Down?
We think in many cases the answer is yes. Websites like Zillow, Realtor.com, and many others, earn their income by making it simpler for agents to get clients. These companies screen buyers and sellers, and then connect them with agents. The agent or his broker pays as much as 25% to 30% of each client’s commission for the service.
There’s a simple way to evaluate that strategy: If profit per client goes down, then number of clients have to go up, and time per client has to go down. Less time on a client translates to less value, and we don’t “buy” into that strategy.
As Keller Williams agents, our clients homes will automatically be on every one of those websites. People ask why those websites don’t promote us. They don’t because we don’t pay them to get our clients! Our clients come to us to get the information they need to make educated real estate decisions. That’s what the “Novins Report,” this website, and everything we do is all about.