Tech Trends Rock RE

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Submitted by SD Transplant on January 10, 2007 - 1:56pm

Got to love this article because
1) again, another reputable source references blog analysis (Inman News)
2) The impact of the RE blogs can no longer be ignored
3) the reality of Tech trends & information that rattles the RE industry

See below: CNN Money

Tech Trends Rock RE World

Submitted by no_such_reality on January 10, 2007 - 2:42pm.

"Brokers prospered by not giving out information," says Dottie Herman, CEO of New York based broker, Prudential Douglas Elliman

All hail Dottie, admitter that RE agents prospered by maintaining an inefficient marketplace.

Efficient markets are dependent on all players have all known information available to them.

Submitted by PerryChase on January 11, 2007 - 10:52pm.

It's about time!!

I think that several technologies are providing transparency in RE.

1. Zillow. For the first time, the public has sale history information. Most people previously did not know that sale history was public record. Now they can view that information and that causes them to dig deeper. Now that flipper profits are out in the open, buyers are becoming resistant to becoming the GF.

Zillow opened up a can a worms. Now that buyers have information, they tend to require for more answers to their questions.

2. Craigslist. Prior to Craigslist it was more difficult to find a rental. For individual rentals, you had to buy the newspaper and waste your time calling landlords, or you had to hire and agent to find a rental for you. Either that , or pay inflated prices to live in an apartment complex.

With Craigslist you can more effectively find a rental by looking at pictures and through email.

Rental prices are also more transparent. I believe this will hold down the pricing power of the large apartment complexes.

Nearly all sales are still made through the MLS but that will change (very slowly) over time.

3. Blogs. Blogs are a great way to share information prior to buying. Buyers can gain tremendous knowledge about certain neighborhoods and the state of the general market before they buy.

4. Zip Realty. I believe that Zip Realty is the first online service that allows you to search properties without trying to refer you to an agent (because they have their own low commission agents). That allows buyers to search to their hearts' content, in the confort of their homes, without sales pressure.

In short, before web services, Real Estate was hit and miss. Buyers relied on friends and family and word of mouth and most importantly on the Realtor whose primary motivation is to close a deal. Now, the Realtor is becoming less instrumental in transactions.

Knowledge is power and tech is delivering that knowledge to potential buyers and sellers.

More transparency in RE will hold prices down. It'll be interesting, in a few years, to look at studies on the affect of web services on RE.

Submitted by no_such_reality on January 11, 2007 - 11:19pm.

Yep, reading something like this

Sale History & Tax Info Sale History
10/12/2006: $570,000
01/14/2003: $355,000
08/27/1997: $165,000

Makes you ask just how much a place is really worth.

Submitted by bob007 on January 13, 2007 - 10:39pm.

Yellow pages are effective in locating list of apartments ina given area. I called 30 apartments and find out availability, rent, deposit, size etc. I never needed an agent to find a rental.

Submitted by blackbox on January 14, 2007 - 10:01am.

Looks like the 6 percent Commission will soon be a distant memory......
Amazing it lasted this long with skyrocketing home prices.
Not a bad gig. Agents had a 100 percent raise in 3 to 4 years.
Hey, hey now. I asked for a non-fat mocha latte with chocolate sprinkles. "Geez, an Ex hotshot real estate agent turn barrista"

I need a cafe with at least an ex real estate appraisal dude employed as a barrista. At least those guys know/knew how to follow instructions without question, no matter how unrealistic the request was/is....

Submitted by farbet on January 14, 2007 - 10:25am.

How many people used Zip Realty?Pros and Cons

Submitted by farbet on January 14, 2007 - 10:25am.

How many people used Zip Realty?Pros and Cons

Submitted by PerryChase on January 14, 2007 - 2:57pm.

Yellow pages are effective in locating list of apartments ina given area. I called 30 apartments and find out availability, rent, deposit, size etc. I never needed an agent to find a rental.

I was talking about non apartment-complex rentals, like private condos being rented out by owners. Before tech those were harder to find.

Submitted by SD Transplant on May 29, 2014 - 9:55am.

bump.....it's 7 years later, let's see how the predictions turned out :)

- Zillow: pretty relevant compared to status quo NAR
- Craigslist:for renters is a great tool (price/availability/area research)

P.S. and I miss PerryChase's contribution to the blog :)

Submitted by Doofrat on May 29, 2014 - 12:04pm.

no_such_reality wrote:
Yep, reading something like this

Sale History & Tax Info Sale History
10/12/2006: $570,000
01/14/2003: $355,000
08/27/1997: $165,000

Makes you ask just how much a place is really worth.

Well according to my calculations, this place should be worth just shy of $900,000 by now.

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