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November 23, 2009
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Response To: Why Aren't Listings Posted Instantly to the Internet? (Blanche Evans - 09/02/1999)

The Reluctant Double Dipper's Dilemma
Posted By: garyedwards - 09/02/1999 01:29 PM

Thanks for bringing attention to a serious problem Blanche. Consumer expectations for on line real estate services are being set by other industries such as auto, travel, tickets, stock trading, news, books, banking, and on line auction sites. The lame excuse that all Realtors suffer the same problems just doesn't wash.

However, there is one traditional delay strategy that you didn't mention in your lament. Brokers have long contrived to hold listings off the market so that they can take a shot at keeping both sides of the commission in house. Usually this is done by having the listing agent explain to the Seller that the home has to be properly prepared and staged before submitting it to the MLS. Not that a little fresh paint, some WD40 and a bit of scrubbing ever hurt the presentation of a property, but during this staging period it is quite common for the Brokerage to circulate the availability of the listing in house. A house that is not ready for the market would seemingly also not be ready for in house distribution either.

On top of the double end traditions the Internet has made exclusive in house distribution much easier. Why would a Broker rush to push a listing into the MLS when they can get up on their own web site within minutes - controlling not only both sides of the transaction but also the value chain of loans, title, insurance, improvements, appliances and furnishings? Why would they hurry to pass these advantages off to competing Brokerages (through the MLS) or competing property portals (also through the MLS)?

At the end of the day we have a situation where both Brokers and MLS's are "reluctant" to push listings to the property portals. Yes, eventually they need to get them there because that's where the market is most fluid. It's the combined exposure of in-house distribution, MLS, magazine, classifieds, open houses, direct mail promotion, and property portals that complete the promise to Sellers of market fluidity. In that chain of exposure methods the property portals stick out more as competitors rather than facilitators. There is no doubt that they are going to bite hard into the value chain that follows origination of the buyer.

Traditionally, that value chain starts with the distribution of the listing. So while technology incompetence is the easy excuse, for sure with real estate a glove that fits, to me the real money rides on "reluctance". Strategic reluctance.

~ge~



Responses to this Post

Post Problem Fixed
Posted by: Scott Davis - 09/02/1999 02:23 PM


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