| Some 30-odd years ago, MLS listings were
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| | it's something you do once every eight or
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| printed on small cards that fit in
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| | 10 years. So you don't develop an actual
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| shoeboxes, and Realtors were their
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| | skill set to do it. So the question is,
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| gatekeepers. Thanks to the Internet,
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| | how fast can we enable customers to get
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| agents as well as consumers have access
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| | up to speed? What's happened is that the
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| to all kinds of information.
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| | market has been dissected into different
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| As a result, real estate firms are
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| | types of consumers. Some guys say, "Do
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| changing the way they interact with
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| | everything for me." Some say, "I want to
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| customers and reevaluating their roles in
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| | be hands on." Before online MLS listings
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| the age of information. "Whereas before
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| | and virtual tours, if you wanted to know
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| clients depended on Realtors for
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| | something, like how big the yard was,
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| information, they're now finding their
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| | you'd have to call me. Now it's, "I saw
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| own information and then coming to us for
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| | this house on the net. It's 10,000 square
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| services," explains Chee, CEO of
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| | feet, it's three-bedroom, it looks like
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| Prudential Locations. "That's meant a lot
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| | what I want. Now what else can you tell
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| of changes for the industry and has made
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| | me?" So now firms need to decide to
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| the job of a Realtor much, much more
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| | include or exclude different ways that
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| complex."
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| | customers want to do business. Some
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| Around 1995, when the Internet first hit
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| | companies are accomplishing that by
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| real estate, it was the kickoff of
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| | offering services a la carte. A menu of
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| consumers getting much more involved in
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| | services is a maturing thing, but, at the
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| the transaction, because it brought more
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| | end of the day, the business that
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| information to the customers. Discount
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| | survives is the one that treats its
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| Brokerages Has all this paved the way for
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| | customers the right way, and that might
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| Discount Brokerages to take over, akin to
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| | mean more education. When you talk about
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| what has happened in the securities
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| | a la carte, it's not as simple as
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| business? Discount brokerages offer all
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| | ordering off a menu, because the
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| the usual services and expertise at a
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| | individual services are all kind of
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| fraction of the cost. Has that forced
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| | connected to each other. When you split
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| traditional real estate firms to rethink
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| | them up too much, it becomes very
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| the way they do business? Will agents
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| | complex. So as long as the consumer knows
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| become order takers and brokers just the
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| | how they're connected, it can work. Is
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| vehicle for executing the real estate
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| | the empowered consumer the main factor
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| transaction? Discount brokerages are not
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| | behind falling commission rates? Overall
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| a new phenomenon. They arise every time
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| | commission rates are falling, and have
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| the market gets hot like this, because
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| | been falling for almost four years across
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| there's so much inventory. And then the
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| | the board, but it's very similar to
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| market switches over, and they disappear.
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| | looking at the statistics for real
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| The thing people need to understand when
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| | estate. People say, "Oh, the average
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| they're working with discount brokerages
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| | price fell by $20,000," but it really
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| is Econ 101. Econ 101 like the grilled
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| | didn't, because the composition of the
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| cheese sandwich that had the Madonna on
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| | market changed.
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| it and sold on eBay for $33,000. It's an
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| | Commissions are falling, but the
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| extreme example of how, when you open the
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| | structure of services is also changing.
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| market up and have more people see it,
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| | Consumers are getting smarter. So one of
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| you get the highest possible price. In a
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| | the things progressive brokers are doing
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| discount situation, generally speaking,
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| | is getting customers as smart as anybody
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| that's not the case. Ask a potential
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| | in the market. The way we do that is by
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| listing client: So what's more
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| | giving them tools that are easy to use.
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| important--the commission, or getting the
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| | In example, giving them all the solds,
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| higher price for your house?
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| | all the listings, charts and graphs to
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| Consumer Education=Good BusinessHow are
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| | get the client smart. Because when
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| traditional brokerages positioning
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| | they're smart, they're decisive!Written
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| themselves to remain relevant and
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| | for
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| important to consumers in this new
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| | By James Christensen
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| landscape? What's interesting is that
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| | Real Estate Expert and educator. Our
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| customers feel empowered because they
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| | training site offers a valuable service
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| found their house on the Net. But if you
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| | to individuals looking to get into the
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| think about the real estate purchase,
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| | Real Estate industry.
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