Post by Bill Kiefer, Executive Vice President and Branch Manager, NAI Capital, Ventura County, CA (aka “broker”)

This thought-provoking WSJ Opinion article by Andy Kessler about how Technology is eating jobs—from toll takers and phone operators to lawyers and doctors – and yes, even brokers — spooked me.  Especially the part about how brokers and other service professionals are to be considered “sponges.”

“Sponges are those who earned their jobs by passing a test meant to limit supply. According to this newspaper, 23% of U.S. workers now need a state license. The Series 7 exam is required for stock brokers. Cosmetologists, real estate brokers, doctors and lawyers all need government certification. All this does is legally bar others from doing the same job, so existing workers can charge more and sponge off the rest of us.”

By this definition, lawyers, doctors, stock brokers, etc. are considered at risk.  Yes, technology is eating up jobs.   That’s why now more than ever, at the end of the day, it is our job as brokers to ensure we add value to a transaction; otherwise brokers will go by the wayside. This means more than simply pushing paper; it means knowing more than other parties to a transaction; local property expertise is essential.

Services like CoStar and LoopNet challenge old school brokers to up their game, but technologically advanced brokers can pair this information with their own local expertise to add value.

I’ve coined the term, “Joy-Stick” brokerage to describe the phenomenon where a broker will identify a listing in a particular region and present it to a client — with a claim of market knowledge.  This type of practice doesn’t work.   Simply researching a property online doesn’t offer a client the true market expertise and the regional knowledge.  Local expertise is the value we can offer.