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Consider the Internet an ally

Realtor Notebook

By Teresa Boardman, Thursday, June 19, 2008.

Inman News

Last week I took a mandatory continuing education class. The instructor said something that I used to hear all the time. He was gloating over the fact that even though Minnesota consumers now have access to information about homes that were sold in the last two years, they do not have all of the information about the homes that Realtors have.

Our multiple listing service now provides listings of sold homes, and consumers can search for them on our Web sites using the same search that they use to find homes for sale. They can now see how much the home down the street sold for.

The instructor, who is also an agent, sees the Internet as a threat to our industry. He sees himself as the source of information for his clients and believes that if they can get it on the Internet they don't need him. He is right: Consumers no longer need to go to him just so they can find out what a home looks like, what the price is, or other important details.

He is missing out if he thinks his only role is to dole out information. The Internet has made my job better. Most of my clients find me through the Internet, which reduces my costs from the days when I had to find them. They are savvy homes buyers and sellers who have educated themselves on the basics before they contact me. They know what they want and where to find it.

Some of my clients pick out the home they wish to buy and give me a call. That doesn't mean that I never show them homes. In most cases they want to do their own home search and then they tell me what they would like to see or even buy. When they need my help searching I am there for them.

So why do these buyers come to me when they have the information they need on the Internet, complete with pictures and the name of the listing agent? They use my services because of the experience I have gained through numerous real estate transactions. They can go it alone but they don't want to. They want to work with someone they know and trust.

They sometimes have the same information as I do, yet they ask my opinion or they ask me to explain information they found on the Internet. They value my opinion and expertise and knowledge of my market area, and know that I understand the intricacies of real estate contracts, can negotiate, and am able to handle any surprises.

They have information about neighborhoods and prices that they found on the Internet but when they go to make an offer they always ask for a price opinion. My opinion is based on the same data they can get, but it is also based on experience. No software or Web site has yet replicated the kind of fuzzy logic that an experienced agent who knows her market area uses to price real estate. There is bad information on the Internet too, and consumers know it. There is so much information that it can be confusing and even misleading.

Withholding information is not job security; people will just find the information elsewhere if it is available. This is the information age and the Internet has exploded with Web sites where consumers can learn more about real estate.

I can't add value by keeping information to myself; I add value by sharing it. The Internet has made it easier and less expensive to share information. The interesting thing is that the more I share and give, the more business I get.

I think the instructor should stick with teaching and let the rest of us work with consumers.

Teresa Boardman is a broker in St. Paul, Minn., and founder of the St. Paul Real Estate blog. Boardman will speak at Real Estate Connect in San Francisco, July 23-25, 2008. Register today.

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Submitted by Jay Seville on June 19, 2008 - 4:41am.

"the more I share and give, the more business I get." -- That sums it up. So true.

 
Submitted by on June 19, 2008 - 5:41am.

Very true Teresa.

I love what the Internet has done for the real estate business. Buyers on the other side of the world can get instant access to all the homes for sale. Sellers can look up sold data, and everyone can see data for communities, schools, and other area information.

But in the end most still rely on us as trusted advisers to guide them through the transaction.

I remember in the early 90s when the Internet was just becoming relevant to real estate; we got that famous "lion over the hill" speech and other scary stories all of which have proved to be untrue.

What the Internet has done for real estate transactions is made them more transparent so buyers and sellers alike have a better understanding of what is going on and that is a step forward.

Rather than putting Realtors out of business as some predicted, I believe it's made our jobs more secure for those of us who adapt and change with the times.

Jim Lee, CRS, ABR, GRI, NAR Certified e-PRO Trainer
Realty Executives Associates, Knoxville, Tennessee
www.KnoxvilleHomeCenter.com mailto:Jim@JimLee.com
(865) 693-3232, My Personal Toll Free # 1-800-662-2488 ext. 163
**********************************

 
Submitted by Peter J. Pike on June 19, 2008 - 6:19am.

I too, agree wholeheartedly with this assessment. As an attorney whose practice is concentrated in real estate law, I recently gave a lectures to local agents that was supposed to be about short sales. It quickly turned into a group discussion about how the NAR settlement would affect local agents. At first, most of the people were either "sitting on the fence" or livid that "their information was being given out". However, when I pointed out that their arguments against change was just the sounding of their own death knell (remember the speech in Other People's Money, when Danny DeVito explained that even the company that made the best buggy whips in the world ultimately went out of business because they refused to change with the times).

I believe that when we were done, the consensus was that Real estate professionals must learn to "embrace change" and the new opportunities being offered by the Internet and the ease of obtaining information. Your expertise in the local marketplace, ability to negotiate on behalf of your clients, and knowledge about the entire process (how many people buy more than four or five houses in their lifetime?) are the services that you bring to the table, that cannot be duplicated through information gleaned on-line.

 
Submitted by on June 19, 2008 - 6:44am.

The faster that agents can adopt the attitude you have, T, the more successful they can be.

I can't imagine why anyone would look at your success and then question the attitude that has lead you there.

http://www.RealEstateZebra.com

 
Submitted by on June 19, 2008 - 6:59am.

"I think the instructor should stick with teaching and let the rest of us work with consumers."

I think the instructor should get a clue or retire from BOTH teaching and selling real estate. Someone sitting in his class is going to believe what he says, and continue to perpetuate the myth.

That this kind of "hoard the data" attitude continues to prevail today is a bit disturbing. Still somewhat prevalent, but disturbing.

Nice piece T.

Jay Thompson
Broker / Owner
Thompson's Realty

Blog: www.PhoenixRealEstateGuy.com

.

 
Submitted by Ralph M on June 19, 2008 - 7:18am.

Embrace, technology and evolution. But also realize, the experienced and knowledgeable real estate professional will NEVER be replaced because no technology can remove a seller's or buyer's emotions and feelings.

www.nosellercost.com
www.aarsteam.com
www.weuuzit.com
www.iuuzit.com

 
Submitted by David Gibbons on June 19, 2008 - 7:45am.

Bravo, T, bravo! If I ran a brokerage, this post would be mandatory reading for all my agents.

The way consumers shop for EVERYTHING has been permanently changed by the internet. The process used to be ... a) find an expert, b) get informed and c) transact in an informed way. Now, it is a) get informed, b) find an expert in an informed way and c) transact in an informed way. This change is important not because consumers are by-passing service providers but because it's helping them improve their due diligence of the experts they work with.

 
Submitted by Fabio Rodriguez on June 19, 2008 - 7:49am.

"The instructor, who is also an agent, sees the Internet as a threat to our industry", did this guy just woke up from coma?. Internet is the best tool real estate agents can have, it gives you the unique opportunity of branding ourselves and let people know us even before we actually shake hands. Nonetheless, it is completely understandable that he is against internet and web 2.0 because he has not seen any good results from it. Internet success requires constancy, dedication and above all honesty. Great post Teresa, keep it up!

Designing your product for monetization first, and people second will probably leave you with neither

 
Submitted by on June 19, 2008 - 8:52am.

:) I sure hope the instructor does not read Inman, I am thinking he doesn't. Jay you have a point, he teaches the licensing course at the local real estate school too. He has a lot of influence.

 
Submitted by on June 19, 2008 - 9:40am.

Teresa, my wife and I are on Realtor.com daily planning out a move in likely 3 months. We're browsing, on consumer sites, doing our homework. Myself now wearing the online RE consumer hat...what's true...

--> I'm not going to list my home by myself, with my own valuation I found using "What's My Home Worth" (but I'm curious...especially for potential homes of interest to buy)...simply stated, we're having fun "playing w/ numbers" on both selling then buying.

--> I'm not going to buy a home w/ no buyer's agent because I found a killer listing on Realtor.com

From overall paperwork, to nuisances of a local market, to intricacies of a neighborhood I may have no idea about (and should be forewarned on)...consumers now-a-days don't want to take the risk of doing it on their own (where consumer websites gives me a "sense of involvement"). I agree your instructor puts "too much" weight on consumer websites...consumers just want to feel involved.

 
Submitted by on June 19, 2008 - 11:32am.

T-
I've been saying this, here in Miami, for the last year or so.

No one believes it. When I freely give info, people trust me more and they want to work with me because of the level of comfort they now feel.

You get more from inclusion than exclusion.

 
Submitted by on June 19, 2008 - 5:18pm.

Teresa, my business runs exactly as you describe. The internet saves everyone time, and I end up focusing on more meaningful conversations that help clients decode the deluge of information they find. It's a new world, but I welcome it.

Diane Cohn, Realtor
Chase International

www.renorealtyblog.com
www.chasenation.com

 
Submitted by Sam Pritchard on June 24, 2008 - 1:01pm.

I think the internet is only a threat to agents who refuse to change. As you explain, the internet creates many new cheaper marketing opportunities to find clients, if we're willing to dive in. I'm thankful for the internet and how it's transforming my business for the better.

Sam Pritchard

http://www.beautifulpasadenahomes.com/
http://www.beautifulpasadenahomes.com/blog.asp