If you like data, and you like real estate, and you REALLY like real estate data, then you’ll love the new book from Zillow CEO Spencer Rascoff and Chief Economist Stan Humphries, Zillow Talk: The New Rules of Real Estate. They used their access to Zillow massive treasure trove of housing data to take a hard look at real estate, examining some of the most revered and hoary maxims of the industry, such as the benefits of renting versus buying and the virtues of the home interest mortgage deduction.  And they also provide a bunch of interesting insights into their data, showing how home values are impacted by walkability, home improvements, the nearby presence of Starbucks or Dunkin Donuts, street numbers, or even the wording and length of online property descriptions.

It’s a really interesting book, which I reviewed at greater length at Inman News here.  Although the book is really written for a general audience, I think it’s particularly valuable for real estate brokers and agents, and I recommend it to all real estate professionals who are interested in learning more about the market they service.

Indeed, I think that real estate agents could get a lot out of Zillow Talk, because they will find any number of interesting insights into their business that can help them become better at their jobs.  And since the purpose of this blog is to help agents develop their client service skills, I thought it might be helpful to pull out five actionable takeaways from Zillow Talk for real estate agents:

Zillow Talk Takeaway #1: Know your worth.

I’ve often talked about the “self-hating” real estate agent, who in her heart doubts that she’s worth the fee that she charges her clients.  Too many agents simply don’t believe in their worth, which is why they cut their commission, get spooked by FSBOs, and shy away from promoting their services to their friends and families.  Simply put, they don’t have faith in the value of what they do.

But what you’ll find in Zillow Talk is one of the strongest articulations of the real estate agent value proposition that I’ve ever seen, particularly coming from the operators of a company (Zillow) that many outsiders think was poised to disintermediate the real estate industry.  Here’s what Rascoff and Humphries had to say about real estate agents:

Maybe you’re wondering whether we still need real estate agents at all.  You might be wondering if they’re heading the way of the travel agent, the stockbroker, and, well, the dodo bird.

We get this question all the time.  And our answer is simple: No. Not by a long shot.

Real estate agents are still incredibly important, and they’re not going anywhere.  In fact, real estate professionals are working more than ever today. According to a recent survey, almost 90 percent of home buyers used an agent to help buy their home.  In 2001, that number was only 70 percent.

(Page 148).  More importantly, Rascoff and Humphries explain why – in particular, the very complexity and stakes involved in a real estate transaction compel the need for competent representation: “When finding and financing a home, . . . the emotionally charged, life-changing, bank-account-draining gravity of the situation leads us to crave – and, indeed, to require – an expert’s guidance.”  (Page 149).

So what does that tell us? Even the people who run Zillow, which is often perceived to be a company designed to help people buy or sell a house on their own, see the value of real estate agents.

But as Rascoff and Humphries go on to point out, it’s not just enough to have any agent – you need a good one.  That’s why it’s so important for today’s agent to build the skills that clients really need in today’s market: how to price a home to the market, how to negotiate the best deal, how to manage and facilitate a transaction to closing.  Agents who are confident in their skills tend to be more confident, and stronger, and more likely to know their own worth.