The real estate market has changed. Previously, we went through a period in which just about anyone could hang out a sign and sell a home. Or that is what the average consumer thought. With the proliferation of technology there arose a host of new competitors to listing agents–competitors who tried to convince homeowners that they no longer needed traditional real estate agents.

In slow times, agents must spend most of their resources marketing and selling their listings. In great times, agents must spend most of their resources obtaining the listings. With technology coming to the forefront, the resources necessary to obtain listings have increased in all markets. In the future, no longer will the agent be able to say that the MLS is the only way to market a home and only through the agent will the homeowner have access.

What does this mean for the typical real estate agent?

•First, more time must be spent differentiating agents from the new competition. There are many services an agent provides that the Internet cannot. Agents save homeowners time and provide expertise. Many times the Internet and technology robs homeowners of their most precious resource–time.

•This educational process must take place BEFORE the decision to list is made. If you get there after the FSBO comes on the market and the homeowner has been given a cold dose of reality, you will be thrown in with the competition. If you educate them before they make the decision (even if they decide to go at it alone at first)–you have a leg up. In other words, marketing of FSBOs must come earlier in the decision-making process.

My next letter will discuss the provision of value to FSBOs. Just as any other worthy target, you must provide unique value to differentiate yourself from the competition.