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Tag: Disintermediation (page 1 of 1)

November 20, 2008

Rethinking Real Estate Web 2.0

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Realtor, Rabble-Rouser

Author website

What do consumers want? I believe this question has been asked ten times to Sunday as it relates to real estate.

I recently read Marc Davison’s recent blog post at 1000Watt Blog summarizing the results of that exact question, What do Consumers Want?.  The report, commissioned by Keller Williams, was developed and written by an impressive list of MBAs and PhDs.  With that amount of intellectual firepower, it is often difficult to question its credibility.

In addition to the report commissioned by Keller Williams, MBA and PhD’s et al, I read a synopsis of NAR’s buyer and seller’s survey, essentially providing the statistics behind today’s buyers and sellers as well as their needs.   I honed in a three key points in NAR’s report:

1.  “Home buyers are consistent in their expectations of real estate agents. Buyers thought the most important agent services are helping find the right house, and negotiating sales terms and price. Because agents often are chosen based on a referral, or were used in a previous transaction, two-thirds of buyers contacted only one real estate agent in the search process.”

2.  “Primarily, sellers want agents to price their home competitively, market the property, find a buyer and sell within a specific timeframe.”

3.  “The most difficult tasks reported by unrepresented sellers are selling within the planned length of time, getting the right price, preparing the home for sale, and understanding and performing paperwork.”

What I found interesting about the Keller William’s report was its premise –  How do you go about the process of selecting an agent?  What I found interesting about the NAR report was that the premise was more consumer centric, not agent centric.

The question I pose is how many of the current RE Web 2.0 solutions have truly “blue sky” functionality?  What if the premise assumed that there was no real estate agent?   What if a solution existed that allowed the consumer to buy and sell real estate at will without the use of a professional?

Ok – now don’t excommunicate me.  I think from a technology perspective, I believe it is a very valid question.  All too often, solutions are Read more

October 21, 2008

I Still Haven’t Found What I’m Looking For

by

Realtor, Rabble-Rouser

Author website

I have been thinking alot lately about RE Web 2.0, particularly in light of the recent news regarding Redfin and Zillow’s current layoffs.  Greg also recently posted regarding the current state of the Realty.bots.

“Indeed. We have seen the future of real estate marketing — and it is us.*”

I am not entirely convinced it has to be all us.

I am a process guy.  Prior to delving into the real estate business, I developed sales and marketing strategies for technology firms – many of which targeted supply chain solutions.  When I approach a process, I try to focus on the inherent value a particular set of activities delivers.

Perhaps the double edged sword in the real estate industry is that we are all independent contractors – we approach our businesses in differing ways.  On one hand, we have the ability to run our businesses in a way that capitalizes on our strengths.  Some of us use a consistent process to bring a deal together, some of us don’t.  I suggest that many consumers approach the purchase and sale of real estate apprehensively.  Many simply don’t know what the correct process is for purchasing or selling a property and they look to a professional to provide the knowledge and expertise to consistently deliver a successful closing.  Unfortunately, not all agents are created equal, therefore mileage varies – alot.

I believe that the myth to the core of the business of buying and selling property lies within the MLS.  This process is not all about the data.  While the data is key, it certainly does not provide a consistent process for facilitating a transaction – there is a natural progression to a transaction.

Up to this point, if not the most successful, at the least the most recognized RE Web 2.0 search solutions have focused their solutions surrounding the myth of the real estate transaction – it is all about the data.  Again, the data is important, however, it is only part of the process.

My frustration with the current search solutions is that it does not address the natural progression of the real estate transaction.  While extremely powerful, Read more

September 13, 2008

Some Days It’s Not Worth Chewing Through the Restraints

by

Realtor, Rabble-Rouser

Author website

In addition to our discussions here at Bloodhound, if you’ve been reading the blogs lately, the commission debate continues.  Jonathan Dalton’s post on Agent Genius has recently spawned a long series of comments regarding how agents are compensated.

One comment (below) got me thinking,

“… I fully believe that my service is worth 6%. Clients in my area seem to be less concerned with getting a “deal” on their commission rate than they are with getting an EXPERT to work for them.”

I am not questioning the agent’s value – it’s hard to debate that consumers want an expert. The issue I have with the comment is “I fully believe my service is worth 6%.”

Why?

What is the significance of 6%?  As we discuss the issue of commissions, why are we stuck on a percentage of the sale? Why isn’t the number 10% or higher – or in some cases, lower? 

In actuality, if you’re cooperating with a buyer’s agent, aren’t you really saying you’re really worth only 3%?

Indulge me for a moment as I share a little story…

In early winter 2007, I happened to represent a client in the sale of his 3-flat in Lakeview – highly desirable area north of Lincoln Park – the building generated solid rental income. I listed the property and generated 2 offers within the first 20 days on the market. The first deal fell apart due to an over-zealous inspector who told my clients the building was worth no more than land value,

Pardon me, but you’re an inspector, not an appraiser.

But that was the least of my problems …

The second deal blew apart 3 days prior to closing. The zoning certificate was incorrect – issued by the city. Chicago stated that that building was a 5-flat. My client was thrilled – LOOK! We can now ask for more! Um – excuse me, but no. When he purchased the building 2 years prior, the city correctly issued a zoning certificate indicating that the building was in fact a legal 3-flat.

The attorney and I discussed Read more

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