In todays technology based world, most commodities could be bought online cheaper than in a brick and mortar store. Knowing this, should I feel like my life as a Realtor will be similar to how my stock broker felt when Charles Schwab came into the picture; or my travel agent felt when Priceline and Expedia were introduced?

There are some similarities since you can log onto a multitude of websites to get online real estate information.  87% of the American home buyers are using the internet to research their home purchases.  Obviously, you are one of those internet based individuals researching my Blog about real estate right now.

The true test is how efficient the discounters business model is and is it consumer friendly and can the consumer really complete the task themselves cheaper and more efficiently?  This is not just about price shopping for identical products online trying to obtain a cheaper price with the same warranty!

I admit that Walmart has a booming business and that their prices may be cheaper than Albertsons or Fred Meyer, yet I dont seem to have as many receipts from Walmart.  I admit that I can stay at the Best Western in McCall for less than the Hunt Lodge (although I believe they are owned by the same entity) and yet I choose to stay at the Hunt Lodge or at the Whitetail Resort.  I admit I spent 5 years at BoiseStateUniversity in pursuit of a BBA in Marketing; however, I wish it was spent at Harvard or Yale.  Sometimes it is about quality and sometimes it falls back to affordability.

For example, back when my life was simple, I did my own taxes.  Then, when I went into business for myself and things got complex so I had a CPA do them for me again.  Then, I felt I was loosing sight of tax insight and tax write-offs, so I did my own taxes again for a number of years thanks to Turbo Tax.  Unfortunately, thanks to an audit by the IRS, I learned I wasn't competant to do my own and am back in the hands of the CPA's again.

I still value the excellent personal service I receive from Doug, my stock broker at Smith Barney, and prefer to have him guide my retirement and my childrens' college funds than trusting my own knowledge and putting these hard earned saving at greater risk using E-trade in an effort to save a commission off an email hot tip that XYZ stock is supposed to be going through the roof.  But, will it be the roof of the building or will it be going through the roof downward clear through the first floor roof while you watch from your Penthouse?

I admit however, my travel agent has become a victim to Priceline for 80 percent of my travel.  If I am open to arrival/departure times or general location for a hotel, in an effort to conserve cash, I am extremely comfortable with Priceline.  I can go online and see what airlines fly to my designation and their fairs and see if I can beat their price myself.  I have confidence in the FAA regulations governing safety of any commercial airline and know that a 3  or a 5 star hotel will still be acceptable in most cases regardless if I am at the Hilton or the Sheraton.

When I recently analyzed how to adjust my Real Estate Marketing Model in this changing market, I realized that I had two choices:

1)      If I allowed my services to be so generic that they became a commodity like that of travel or buying software for my computer, then I might as well accept that I will have to become a discount broker;

2)      Offer excellent service and value so people will search me out to do business with me like I do my stock broker and my CPA and continue to thrive in every market thanks to referrals from past clients.

Since Tiger Woods still takes golf lessons, I realized there will always be room for people and companies that offer value added services!  Therefore, while some agents are reducing their advertising and marketing costs so that they can compete on discounted fees, I am doing the opposite!  I have added things to my marketing mix so that my services stand out from the pack.  I firmly believe in the principles I learned from the book Raving Fans by Ken Blanchard. 

I have added services for sellers like:  free pre-listing home inspection services, free handyman services so that the little honey dos are done upfront, free home warranties during the listing period, etc.  For buyers, I have included free handyman services, free re-key services so they are secure in their new home, etc.  I have raised the stakes higher yet for sellers that are willing to prepay a 1% marketing fee.  The entire 1% is budgeted to specific marketing supplements for their home.  This might include Wall Street Journal advertising, Unique Homes Magazine, DuPont Registry, buying a domain on the internet for their home, home staging services for upper end homes, etc..  If the home is sold before the 1% fee is exhausted, the balance is refunded to the seller!

I hope my competitors dont read this Blog, because my strategy is paying off!  Developers are recommending me to builders; builders have recommended me to other builders; banks are suggesting to their over extended builders to consider listing with me; investors are tired of everyone telling them it is all about price so reduce-reduce-reduce!

If you were going to buy a nice car or an original piece of art or an autographed baseball that was supposed to be signed by Babe Ruth, would you buy them on EBAY?

If you would, you should try one of the many available choices for discounted real estate services or even try to sell you home on your own.  If, however; you prefer Nordstroms to Walmart, maybe we should talk.

Jim Paulson, CRS, ePro, GRI;

RE/MAX Capital City

www.IdahoMLStours.com

208-573-0471