The Hidden Truth About Online Real Estate Listings
By Marianne Elsaesser, Compass Real Estate
From the August 2024 edition of Wyckoff Living Magazine
In the fast-paced world of real estate, online listings have become the go-to resource for buyers. However, a hidden truth lies behind these seemingly convenient platforms that can significantly impact your home-buying experience. Have you ever clicked on a listing thinking you'd be connected to the listing agent, only to end up speaking with someone unfamiliar with the property? If so, you're not alone. This common frustration stems from a practice employed by popular real estate portals that few buyers are aware of.
The Compass Real Estate team
The Mechanics of Online Listings
Popular real estate portals like Zillow, Realtor.com, and others collect property information from Multiple Listing Service (MLS) systems with permission. These platforms present an extensive array of listings, making it easy for buyers to browse and find potential homes. However, the process of connecting with an agent is where things get complicated.
When you click on "contact agent," you might expect to speak directly with the listing agent—the person most familiar with the property. Instead, these companies often sell your inquiry to realtors who are willing to pay a premium for access to potential buyers. This fee can amount to thousands of dollars. The realtors who buy these leads may not have any prior knowledge of the property you’re interested in.
The Buyer as a "Lead"
Internally, these buyers are referred to as "leads." To maximize their profits, real estate portals employ scripts to guide their representatives through conversations with buyers. These scripts are designed to skirt around the fact that the agent you're connected with might not be the listing agent. Consequently, buyers can be misled into thinking they are getting expert advice from someone who knows the property inside and out, when in reality, they are speaking to an agent who is simply paying for the connection.
The Impact on Buyers
This practice takes advantage of buyers who are often desperate to find a home for their family, especially in a competitive market. The frustration of not being able to speak directly with the listing agent can add unnecessary stress and confusion to the home-buying process. Buyers may find themselves receiving generic information or, worse, incorrect details about a property because the agent lacks firsthand knowledge.
How to Navigate the System
If you are a buyer or know someone in the market for a home, it's essential to know how to bypass this system to connect directly with the listing brokers. Here are some tips:
Research the Listing Agent: Look for the listing agent’s name in the property details and search for their direct contact information online.
Use MLS Directories: Access MLS listings through local real estate websites or directly from real estate offices that provide MLS access.
Ask Direct Questions: When you get connected with an agent, ask them if they are the listing agent. If they aren’t, request to speak with the actual listing agent.
Consult a Trusted Realtor: Work with a realtor you trust who can help you navigate listings and ensure you’re speaking with the right agents.
Spread the Word
Share this article with anyone you know who is currently navigating the home-buying process. Educating buyers about this hidden practice can help them make more informed decisions and reduce the frustration that comes with being misled.
By understanding the inner workings of online real estate portals and taking proactive steps, buyers can gain better control of their home search and ensure they’re getting accurate, helpful information from knowledgeable agents.