Is there any need for a broker in the world of the internet?
THE AGE OF INFORMATION
There is a proliferation of information available for free on the internet. Whether you are buying a refrigerator or a house it is possible to learn a lot about pricing while you are still in your pajamas. Zillow is fast becoming one of the first stops for buyers and sellers of homes. Their algorithms collect precise information about every single home in the United States. Their web crawlers discover an amazing amount of facts about a house, from its square footage and number of bathrooms to lot size, to annual property taxes. They then use their “bots” to assign a value or “zestimate” of the home’s expected value in the open market. All of this is being done to displace, or tamp down the impact of the licensed real estate expert. And it may be increasingly effective in lowering the use or value of residential real estate agents.
THE ROLE OF DATA IN COMMERCIAL REAL ESTATE
Are Zillow or LoopNet eliminating the role of a real estate professional? The answer is yes and no.
Yes the real estate professional will be eliminated if they are unable to add something to the information freely available. Now that anyone can access information it would seem the Realtor’s value is diminished. In fact, it has never been more important to add value on one condition: the professional must be able to offer a unique value and level of expertise in the area of greatest interest to the client.
WHY WOULD I NEED A BROKER?
There is one thing they cannot receive from a bot or an algorithm or a free website. And that is ADVICE.
Our clients are facing major economic decisions that can affect their business, their career advancement or the value of their inheritance. These major decisions are best left to people like us that are on the battlefield every day. In the case of choosing a land broker for example, there are too many variables the bots and algorithms cannot track accurately if at all. Topography, zoning, traffic patterns, neighborhood gentrification, environmental issues, entitlements from the municipality and the myriad other details that can affect land value are the issues that matter – and these are where are our advice is worth every penny.