One of my favorite past times is to read the reviews that consumers leave for Homesnap, the technology partner to the Broker Public Portal. As a consultant to the Broker Public Portal, reading the reviews informs my awareness of the best features and worst features of the app. The funny part is that even the complaints are positive. The favorite feature of the app is that consumers are connected directly with the listing agent.
Consumers do not want to be sold, and they do not want to be treated like a lead in a lead funnel. They are trying to discover a home for their family.
As you know, broker and agent IDX websites and third-party ad portals do not follow the Fair Display Guidelines, which make it easy for a consumer to connect with the listing agent. Rather, IDX websites and advertising portals direct the consumer to the next agent in line for a lead – typically an agent who has no knowledge of the property the consumer is asking about. Remember, the consumer has already looked at the listing record and photos. They want to know something about the house that is not in the data.
Imagine the experience of walking into a Honda dealership and asking a question about the Bluetooth integration on a car that you see on the lot. The sales rep says “I have never seen that car before, but I can go look at it with you and represent you in purchasing it. I help car buyers like you negotiate the best possible price on cars and will assist you throughout the complex transaction process.”!
“Wait a second!” you exclaim. “I want you to answer my question, not sell me on why you should be my agent.”
Perhaps the greatest thing about Homesnap is that it connects consumers with the listing agent – the most knowledgeable person for that house other than the homeowner. When a homebuyer is poking around the market to get a sense of neighborhood and value, they want answers, not a sales pitch. Guess what – consumers like this about Homesnap.
I know that it seems like a crazy idea, but I would love to see a brokerage rethink their website strategy and put the contact name of every listing agent on every property of their website. I understand the argument against this. Let’s unpack it.
- I would be giving a lead to a competitor
- I might not be generating as many leads for my buyer’s agents or relocation business.
I could probably come up with more reasons, but reason #1 is probably enough to stop any brokerage from doing it. It seems counterintuitive to give leads to a competitor after investing all of that time and treasury in attracting a consumer to your website. But what if…..
- You use the lead generation to recruit that listing agent from another firm because you not only believe in giving leads on an agent’s listing to the listing agent at your firm, but you believe that this is the best practice.
- You refer that lead out as a referral to that listing agent – so even when you are giving away a lead, you can recapture the cost of lead generation.
- Consumers like your site better because you connect them to an agent who actually knows the property and your site becomes the most popular site in your area. After all, we all know that Redfin has the most popular brokerage website in America, but more consumers use Redfin for search than they do to transact. At some level, Redfin benefits even if the transaction happens with a non-Redfin agent.
Maybe IDX has had its run. Perhaps brokers should refocus their websites on creating a special experience that markets each of their listings rather than focusing on a normalized search experience across the entire MLS. It annoys me that most broker and agent websites do not even have a Featured Listing or Our Listings button anymore. Akin to refocusing on the listings you represent, perhaps broker websites should position their agents better. Real estate is not about selling homes, it is about representing buyers and sellers with fantastic agents backed by an awesome broker. A fresh strategy discussion might inspire some innovation.
If you are a brokerage who wants to launch a test site for this type of thinking, contact Victor Lund. We might make a profound difference and delight the consumer.
What is the point of buyers agents if customers simply want to know about the property directly from a listing agent? We can do away with buyers agents and adopt a more European style and save customers half of what they’re spending on commissions (and cut our transaction volume in half).
Perhaps a time will come when homes are sufficiently commoditized that consumers rationally skip on representation. Maybe when they have a significant and ongoing relationship with a brand like Redfin they will be well served by that style of business.
But I don’t think we’re there yet. And I don’t think buyers are well served being routed to the listing agent (though no doubt listing agents are).
I guess that it depends on the buyer’s agent. If they are doing their job, they would be calling the listing agent for them. In terms of attracting customers, if buyers’ agents are working their sphere and getting referrals from listing agents, then they will do fine.
Frankly, I am not sure that the pure “buyers” agent model is the best one. Most agents are listing agents and buyers agents. You meet buyers off of your listings from sign calls and open houses and digital marketing. Most buyers do not buy every house they call on – but if you connect with them when they call on your listing and you stay in touch, they may want to use you as their buyer’s agent.
I hope that we never see a day when consumers skip on representation. That will be horrible. Buying and selling homes is complicated. It needs to be done carefully. I like the buyer and seller agent model because they each represent (or should represent) what is best for their client. When they do a good job, that leads to repeat and referral business.
It still feels to me like most buyers find the home they eventually buy though their agent – not through a website.
Victor wrote: ” I would love to see a brokerage rethink their website strategy and put the contact name of every listing agent on every property of their website.”
From your pen, to the Real Estate gods’ ears — I’ve been trying to convince a limited number of brokers/owners of this ever since IDX surface (1999-2000) in this area (suburban Philadelphia).
Victor wrote: Perhaps the greatest thing … is that it connects consumers with the listing agent – the most knowledgeable person for that house other than the homeowner.
Yes, buyers and sellers (those who have the interest or luxury of spending time to think about it) would/should appreciate it.
Again in the Philadelphia suburban market, we are seeing (without going-looking for it) a steady increase of Listings showing up from agents outside area — many miles (and towns and even counties) distant — agents who do not know the territory.
For nearly 2 decades I have been preaching to my broker/owner clients — prospective buyers would love to find a Realtor with great “local knowledge” — but the IDX model and the 3rd party lead-generation model that floods the WWW with redundant fluff — frustrates the most motivated and best qualified prospective clients.
Across suburban and exurban Philadelphia, the vast majority of agents end up listing homes outside of the areas in which they are most knowledgeable. As a non-agent, when I suggest perhaps towns/municipalities might provide classroom immersion in their community, I am virtually vilified by agents/brokers — seems they’re more interested in the misdirections offered by outsider-lead generators, than to prospective buyers and sellers.
I support the concept of Buyer’s and Sellers being represented by their independent loyal agents. Dual Agency raises ethical questions and I believe some states prohibit it by law. Assuming that only the Seller’s (listing) Agent is the only source of full information about a house and the locale is a mistake.
This does not advocate dual agency in any way. And I can tell you that we have done research to ask 1000 agents about IDX properties in their area and none of them had the answers 0 out of 1000. The agents offered to research the answers to the question (by contacting the sellers agent). But we did not encounter a single agent who actually had visited the property.
Now, I know that many agents are very good about going to broker open houses – and some agents have actually shown listings before. But we somehow managed to not find a single agent who got one of out 1000 IDX leads who had seen the house.
A good (experienced) Buyer’s Agent can tour homes with a Buyer and point out potential issues, improvement opportunities, and provide locale info. The Buyer’s Agent can pull back the curtain on some issues (not substituting for a detailed home inspection) that can be helpful to the Buyer. Do you think the Seller’s Agent would welcome the Buyer with a list of issues negative to the sale? The Buyer would be best served by an experienced Buyer’s Agent who is also familiar with the area. Notwithstanding any conflict of interest, a Buyer cannot be assured that the Seller’s (listing) Agent is familiar with the locale or sufficiently experienced to recognize potential issues.
I agree. But still believe that listings should have the sellers info published in IDX.
By your argumentation- the sellers agent should not have their contact info on the yard sign
Interne Data Exchange expands advertising opportunities… Its purpose is not to send leads directly to the Seller’s Agent. You promote my listings and I will promote yours. Everybody wins.
Oh no! David, please do not misunderstand. I am not suggesting that every lead go to the sellers agent. Just suggesting that the contact information of the sellers agent be listed on the page – perhaps down at the bottom where their name already exists – just add phone number. Let’s face it, anyone can copy the listing agents’ name and search them easily enough – why not just list it.
and…..it would still be reciprocal – you promoting my listings and my promoting yours – and everyone winning.