I just finished watching Allan Dalton (CEO Realtor.com) and Gregg Kelman (CEO Redfin) argue it out over the pros and cons of the Real Estate 2.0 movement at Inman’s NYC Connect Conference last January. For those of you who have not seen it, I would highly suggest you watch it.
What the debate clearly emphasizes is the growing division between the new Real Estate 2.0 model (web-based Real Estate) and the traditional, Realtor sensitive, model; and more specifically, the clear division between those agents who will work for less than 5-6% and those who wont.
In a perfect world, such a division wouldn’t be a cause for concern. Traditional and “web-based agents” would simply agree to disagree and go about their separate ways of consummating sales. And this would certainly seem appropriate given that there are buyers and sellers whom prefer both types of agents and systems. This, however, is not the case.
The current rift has sparked outrageous debate and attempted degradation of the opposition’s system and fee structures. Traditional agents claim that this new breed of agent “cheapens” both the industry and a traditional agent’s value, and leaves the general public open to exploitation given lack of proper representation. “Web agents” claim that the traditional model is plagued by market inefficiencies and inflated commission structures, and subsequently swindles the general public out of hard earned equity.
I’m not here to present a case for either side. In fact, I think that both sides make very legitimate points. The travesty is our response to change. While the public view of our industry is hitting all-time lows, all that we can think to do is argue with each other over whose system is better. It’s like watching children argue at the dinner table. The adults at the table are left disgusted, with disregard and contempt for both sides.
The general public is rational, and smarter than given credit for. And they know what they like. Some prefer an al a carte, discounted program. Some prefer the no-hassle, full commission program. This is America, people. It’s capitalism. The industry is changing… accept it! And be smart enough to realize that you, nor the “opposition” knows exactly where it is going to settle.