Kris Krohn here and today we're talking about our realtors becoming obsolete? So
it's really a good question. Our realtors going to become obsolete? I think one of
the things that you and I really got to understand is that the market creates
efficiency. And as long as there's money that can be saved, someone's going to find a
way to invent a technology that can save you money. Right now though, let's look at
what a realtor is really doing. Realtors got a pretty big job. One, they go out and
they find houses for you or they list your house for sale. Now, people have
already started finding workarounds like hey, "I don't need a realtor to find a
house.That's very true and I don't need a realtor to list my house because now
they have these listing services because who wants to pay 3% when they list and I
still want to get onto that MLS multi listing service, is there a way to do it
at a flat rate fee like $500 rather than a paying a realtor
that fee?" And the answer is yes. Technology is already starting to make
that part of realtor dumb obsolete. But then, the other aspect is look at all
the work that they do in making sure that eyes are dotted and T's are crossed.
For me, what a realtor is really doing is keeping, watching out, hopefully for my
best interests. They're making sure that the contract is done correctly. They're
making sure that they can help negotiate between parties and frankly, I think
technology has a long way to come before it can completely make what a realtor
does obsolete. But will it happen? I think it's inevitable. I think that
eventually technology's going to find a real simple way to create perhaps the
green button push start negotiation process. What about this, what do you
think about this, be able to do it all digitally but right now, that's not the
way it is. So, right now am I using realtors on every real estate
transaction that I do? Yes. Why am i doing it? Well I'm doing it because I want to
make sure that I dot my eyes and I cross my T's and I want that protection in
place. That doesn't mean that when I'm doing a lot of real estate in bulk, that
I'm not asking for discounts. In fact, I do
because paying a realtor a full 3% if I'm a strong savvy experienced investor
and I know what I'm doing, I'm able to go in and actually you know
reduce the time and effort that a realtor has to put in. I'm not going to be
one of those cranky clients that has never done this before, that's going to look
at a hundred homes before I make a decision. So at the end of the day, I make
it really easy on my realtors and so I pay them less because I'm asking for
less. Can you negotiate with the realtor? You absolutely can. By the way, just a
side topic, a lot of times people will say, "wow! can I ask my realtor to list my
house at a discounted price? Yes, many realtors are not going to actually do
open houses or showings no matter what they say. They're hoping that just
listing it on the MLS. Other realtors will see it, other consumers will see it
and they're going to get your house under contract. However, when it comes to buying
a property should you negotiate on paying your realtor less? I'd be really
careful on that one. They've got a lot more active work to do on buying house
they've got to show you several homes, they've got to get in the car, they've
got to drive you around, they got to crunch numbers, they've got to make phone
calls and so I usually ask for my discounts when I'm selling something
usually not when I'm buying something. So that's something for you to keep in mind
when it comes to, "hey are they becoming extinct?" They're not. If you wanted to
negotiate a lower price, you could. At the end of the day, will technology
eventually come about that might make realtor them completely obsolete? Yeah, I
think it's super likely. Now, if you're a realtor you're like, "uh-oh
should I like have concerns for my job security?" No, you're in business for
yourself. Innovate. Be different. In fact if you are realtor, you definitely got to
make sure that you have a niche that you'd collect expertise in and that you
do a really good job effectively communicating that and you need a mentor.
Go find someone out there that's crushing it as a realtor. Go find the
space that you'd like to be in as a realtor because there's so many
different specialties that you can really go in to. Find a niche, hunker down
on it, rock it out, collect that experience and they become that
untouchable source why people would want to use you versus some dumb technology.
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