This has been a big news week for residential real estate brokerage industry. And so did you check out the announcement made yesterday by Redfin?
Putting the typical negative headline that accompanies most progressive change in this industry aside for now, there is really nothing new here that Redfin has magically discovered.. That’s right - really - nothing -new.
There is not one Seller who has ever asked an agent to list their home for sale. They all say that they want you - the listing broker - to sell their home. And they mean it. They go to al the work to choose you because they want YOU to list and sell the home. They do not understand why we as an industry would fight so vigorously to get the listing and then immediately throw it to the wolves, your competitors, in the MLS. Do you really think the consumer finds enjoining a completely unknown agent in the transaction a good thing?
A question for you. Have you ever stopped and thought about how odd this sales strategy really is? Why, if you’re the great and capable broker you “sell” that you are, can’t you find a buyer for my home?
No other industry or business that I know of creates a product and then belongs to an organization that exists to mandate that its competitors must be allowed to sell that product for them and to then take more than 50% of the sales fee revenue. In business, that is known as insanity. What would a Mercedes Benz dealer say about joining such an organization of auto dealers that would entitle a Lexus or a BMW dealer to sell its MBZ vehicles and then demand a share of the profit from the sale? Or why would Southwest decide now to allow American Airlines to sell its seats or vice versa?
So what Redfin is doing is fulfilling its promise to the Seller to do everything possible to sell their own listings. And that is a crime? They can now do everything a traditional brokerage can do plus one more thing. They can solicit offers directly from the same consumers who have chosen to go online and shop for a property without and agent or a broker. Somehow those consumers seem to be doing alright in managing the search process so why not allow them to go ahead and make an offer?
Makes sense to me. But what about you?
If you find what Redfin is doing as odd or unfair or as anything negative, I highly suggest that you think again. As an industry we need to rethink and evolve our processes to better meet the demands of the demanding consumer. And not unlike what Redfin has done here, that will absolutely involve taking out - as in more than put out to pasture - the majority of the "sacred cows” that exist now in the residential real estate brokerage industry.
And the good thing about doing this? My good friend Bob Kriegel explained the benefit of doing this in his best-selling book on business called . . . . brace yourself now . . . . “Sacred Cows Make the Best Burgers.”
It’s time, as in right now, to "herd all of your sacred cows in your business" and put your very smartest people to work taking them out - one by one - until they are all gone. And then I highly suggest that you should "brace for the impact" of a newly found level of amazing success!
Have a great day!