Sunday, March 12, 2006

Resistance to Change

NOTE: Even though NetOffer.com operates in Texas the comments in this article apply to all states.

It is human nature to resist change. Change is the 'boogyman' coming to your home. Change is scary. Change threatens the established order to which we have grown accustomed.

Yet change is also an opportunity. It is a chance to clean house and air out the carpets. It is a chance to find more efficient ways of doing things and to lower costs. Embracing change and finding better ways of doing things is a uniquely human attribute and throughout history our ancestors have struggled with how to incorporate new developments into the way that we do things.

When a professional services industry, such as the real estate industry, confronts dramatic structural change to the established way of doing things it is natural for the first response to be resistance. That resistance will take the form of social ostracism, boycotting, erecting regulatory barriers, and supporting legislative based restrictions. Each of these forms of resistance represent an escallation from the prior form and each represents a signal that the momentum to change is gaining ground and that the prior form of resistance is failing to prevent the change.

When the technology of the real estate brokerage industry became sufficiently mature to allow private individuals to utilize the Internet to search for properties and to search between agents and brokers trying to find a provider of listing services at a lower price that the industry norm the initial reaction of the traditional, entrenched industry was social ostracism and boycotting of listings. For quit some time this was a sufficiently powerful mechanism to prevent wholesale acceptance of flat fee listings as a way of competing for listings. Eventually, though, the growth of flat fee listing services became enough of a nuisance that industry began to use its lobbying power to get the various real estate commissions to enact new regulation making it more difficult for agents and brokers to provide flat fee listings. But, in most cases that form of defense proved to be short lived and new methods of pricing were developed that complied with the regulations and flat fee listing services continued to grow.

The last stage of resistance has been to find ways to get the legislature to change the law to require certain minimum levels of service in an attempt to make it illegal to provide limited service listings to the public. This approach is gaining momentum in various state legislatures due to the fact that the Department of Justice and the Federal Trade Commission can, and will, take action against regulatory bodies to prevent competition and support the traditional, entrenched, model of providing services. But even the legislative approach has, and will, fail.

Fundamentally, consumers want to obtain services at prices lower than the traditional model would impose. Consumers are willing to work with agents and brokers who provide alternatives at lower prices. Consumers are willing to accept contractual agreements that allow flat fee service providers to comply with the legal requirements while containing their exposure to open ended time committments.

As long as the consumer is demanding alternatives there will be providers who will find creative and legal ways to circumvent the intention of the legislative process and offer alternatives to the traditional full service full fee model of providing listing services to the consumer.

NetOffer provides flat fee mls listing services to the public through a unique combination of high technology and high personal interaction. We do so for fees that are significantly lower than what is charged by the traditional "full service - full fee" industry. Our clients universally applaud both our style of business and our level of service. Flat fee mls listings are likely to be come the norm for the industry as more and more people experience the service and share their positive experiences with their friends and acquaintances.

We welcome the chance to show you that there is an alternative and it can save you a lot of money and time. Call us at 972-470-5888 with any questions.

Lee Thurburn

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