REDFIN WINS!!! As differentiation among agents disappears.

I read a horrifying article on Inman News today about public facing MLS sites owned by the local MLS. The article I read referred to HAR in Houston Texas and explained all the fantastic marketing things they were doing to drive traffic to their site including billboards, radio, tv, print etc. and they are talking about syndicating the listings and automatically feeding this info to some of the big internet home marketing sites like zillow, google base, etc. All the things a great agent might also do to increase and protect their market share. If the MLS’s around the country start to act like internet marketing companies, what is left for the listing agent to do besides stick a sign in the yard, and how much commission is that really worth, hence Redfin.

While this may be great news for the struggling agents who list fewer than 6 homes a year, (an agent who might want to consider the Redfin gig as I understand it) It is terrible news for the successful real estate agents and brokers who have taken advantage of technology and the internet to further grow their business by doing a better job of selling their clients listings and building a steady stream of qualified buyers.

Think about it, the best buyer magnet in the business is an MLS broker reciprocity IDX solution. If I am a home buyer on the internet, what is the only thing that is important to me when I stumble upon your site through Google or some other method? Listings!! If you spend all the time and effort to build a nice site and drive me their only to show me your current two or three listings, I’ll be off your site in less than 30 seconds. Smart agents know this and incorporate IDX search solutions into their site. The better listing agents know how and where to place their listings on the internet to provide ever increasing exposure to their clients homes for sale. If the local MLSs start doing all this for you, then how will any agent present themselves as any better or different from any other agent. And if this becomes true, than agents become a simple commodity and the value of their service drops like a lead balloon.

Think about it, if I have a $500,000 house to sell do I want to pay $30,000 in commissions or pay a couple of grand to Pro Source, study nights and weekends, to get my realtor license so I can join the local board and let them to a fantastic job of marketing my home for next to nothing?