Competition in the Real Estate Brokerage Industry - #7

Continuing the report with the description of nontraditional business models, the VOW, or Virtual Office Website, is discussed. The report states: "VOWs are Internet websites through which brokers offer brokerage services online to their registered clients.78 The unique feature of VOW operators is that these brokers offer their clients the ability to search online the same MLS information that other brokers provide to their clients through other delivery methods, such as hand delivery, mail, fax, or email."

That quote, and the statement next that these VOW's could provide clients with more information than the IDX searches is true. However, the gap is closing. Though IDX searches do have limited fields of information, there are other automated full information delivery mechanisms available to a non-VOW brokerage. Many MLS systems allow the agent or broker to set up an automated report alert system that will send matching listings to the customer. These can be set up with full listing information. However, the VOW is still ahead in the ability to allow the client to search the MLS just as a member would.

The ability to search the MLS at their leisure is definitely a benefit to the client. The report correctly states that it's also a benefit to the broker, as they spend less time working with the client in the search phase of the process. A panelist who worked with the now-defunct e-Realty company, a VOW, testified that they could charge a lower commission due to the resources saved in allowing the client to do their own searches.

Entire series: #1, #2, #3, #4, #5, #6, #7, #8, #9, #10, #11, #12, #13, #14, #15, #16, #17, #18, #19 & final