The internet has bred competition, not lowered it.
That was the main point of a commentary by National Association of Realtors President Thomas M. Stevens which was published last month in USA Today. Stevens emphasized the ultra-competitive nature of the real estate business and says the Internet has boosted demand for real estate professionals.
“America’s real estate industry is one of the most competitive business environments in the world, characterized by low barriers to entry, intense personal client service and performance-based compensation,” Stevens wrote. “Virtually every business model is represented in our membership, and we believe in the power of the marketplace to drive innovation and foster change.”
He went on to say that brokerages and the nation’s multiple listing services have invested billions to make listings freely available online to the public, which has spurred innovation and made real estate one of the biggest commercial uses of the Internet.
In other businesses, Stevens said, the Internet has diminished the role of the professional. “The opposite is occurring in real estate,” he said. “More families than ever are turning to real estate professionals to help them buy or sell a home.”
Stevens’ commentary, titled “We Compete, Clients Benefit,” appeared in the opinion/editorial section of USA Today, countering an editorial that claims the real estate business is “inefficient, anti-competitive, and anti-consumer.” The editorial also criticized minimum-service requirements and bans on buyer rebates, among other things.