There’s always something to howl about.

How Much Does Knowledge Cost?

We are drowning in information but starved for knowledge.”  quoted by John Naisbitt.

As RE Web 2.0 has evolved, there has been so much emphasis on the data, yet as we sit and evaluate the present solutions, consumers are still unclear how to interpret the information.

“Information is not knowledge.”  quoted by Albert Einstein.

Buying and selling real estate isn’t all about the data – it’s about knowledge and expertise.

If knowledge is not information, what is knowledge?

According to Merriam-Webster online, knowledge is defined as the following:

Knowledge (1): the fact or condition of knowing something with familiarity gained through experience or association (2): acquaintance with or understanding of a science, art, or technique b (1): the fact or condition of being aware of something (2): the range of one’s information or understanding <answered to the best of my knowledge> c: the circumstance or condition of apprehending truth or fact through reasoning : cognition d: the fact or condition of having information or of being learned <a person of unusual knowledge>
If consumers are to gain value from technology in the real estate arena, the solutions must be focused on the interpretation of the information.  Interpretation of information is knowledge.
Who possesses knowledge in the real estate arena?  Experienced Realtors, brokers, mortgage professionals, attorneys, title/escrow agents, property inspectors, experienced investors and others involved in the transaction.  Experience gained over time, after executing a number of transactions.
The prevalent mindset is to reduce the cost of the transaction by reducing the commission paid to the real estate agent because technology delivers information more openly to the consumer – but what value has been created?  Has true value been really created if more information has become available?
Reduced fee business models often focus on reducing the most value aspect of the transaction – the knowledge and expertise of the real estate professional.  Granted, if the knowledge and expertise is not readily identifiable, it makes sense to pay less.  I believe reduced fee models address the barrier to entry for new agents who may lack the knowledge and expertise more seasoned and experienced agents have gained over time.
Do you know how much your knowledge costs?  How is your value being communicated to the consumer?

“If we value independence, if we are disturbed by the growing conformity of knowledge, of values, of attitudes, which our present system induces, then we may wish to set up conditions of learning which make for uniqueness, for self-direction, and for self-initiated learning.”  quoted by Carl Rogers

The future direction of RE Web 3.0 technology solutions should be to exploit the unique expertise possessed by the professionals who “own” the knowledge.