Dave's Blog

Technology Changes Everything... Yet it changes Nothing

Dave Armstrong (NA) — Mon, 10 Mar 2008 18:43:46 -0500

I've been reading posts and discussions on this site, and learning what the real estate industry has to say on technology. I'm pleased to see that some people do understand the significant impact that it may have, but many people are not quite seeing the forest for the trees.

So I want to share a little bit about how technology drives change in any industry, and maybe we all together can predict not only what RE needs, but how we can all use it to improve our own businesses.

So let me first off state something that sounds out of character for a web engineer:

You don't need a web site.

*gasp*

Let me clarify - what you need is communication with your customers and potential customers. Do any of you truly drive your business transactions over your web site? Or is it a lead generation system? Do you forego posting in MLS because it is on your site? Do you stop talking to people on the phone because you have a site?

So should you have a web site? Yes, quite likely. Everything is going to the web, and not having a site is a disadvantage. But do you NEED one? You tell me. Everyone's answer should be different. A web site is a highly effective business tool. It will help you. But never forget the truth - your business success is what matters, not your site. Never lose focus of what truly matters.

...Next controversial statement...

Today's web sites aren't changing anything.

Today's web sites are fancy wrappers around the same old business processes. They are a pretty way to generate leads, and a fancy method to advertise your services. But MLS still is the data store for the industry, and papers and faxes are still the tools to work through contracts. The steps taken by every buyer/seller are not changing, nor is the role of the agent, the loan officer, or the title company.

Will this be true forever? Surely not. Changes are already beginning, and believe me, the software industry is chomping at the bit to be the player who changes it. Myself included.

So -- what changes are coming?

The processes and data are becoming more transparent. Your average buyer/seller can get the MLS data as well as an agent. They can find templates of required contracts and determine what steps are needed. FSBO grows year over year because of this.

So what? What does this mean for agents? It means that agents can not rely on specialized knowledge or data access to create value for them. Instead, they need to adopt a consultative perspective. They need to show buyers and sellers that they can offer in-depth insights into a situation based on the available data. They will need to demonstrate that your average homeowner may not appreciate the subtleties of the industry just because they have data at their fingertips. They need to embrace the concept of ROI - showing that the seller gets their money's worth when they pay your commission. Putting a measurable monetary value on consultative services, and then delivering on that value will stop FSBO in its tracks, and maintain your income levels no matter how much people like me automate the logistics of the industry.

People like me can automate processes, we can "web-ify" contract processing and paperwork, we can streamline transactions, and make it all pretty and easy to use online. If you can ask for it, I can build it, and I can build it well.

But a web-based computer system cannot replace experience. Technology will change the landscape. But it cannot replace you. You will always be the expert. Embrace your expertise, run with it, and technological changes will do nothing but benefit you. .

Bottom Line - Technology will change the world. But if you embrace it, and use your own knowledge to enhance what technology can offer, it will do nothing but improve your bottom line.

Sample Listing from my site

Dave Armstrong (NA) — Sat, 08 Mar 2008 06:45:04 -0600

Just as an example, I wanted to post a sample listing from my site to show people what it produces, and how a craigslist ad might look.

FYI, this home is currently under contract, as long as today's inspections go well. :)

SE Denver 3 BR Close to Light Rail - 179900

2241 S. Dexter St.
Denver, CO, 80222 - Denver

Beds: 3
Baths: 1
Sq. Ft: 2100
Exterior Color: White
Acres: .5
Year Built: 1953
# Floors: 1
Home Type: Ranch
Subdivision: Univerity Hills Warrens

Photos

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Family Room

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The front door opens into this large room, which we used as the main living area of the house. It is the central room in the floor plan, and gives the home an very open feel. If you compare this home to others in the neighborhood, you will notice the difference in the feel as you walk into the home.

Hardwood Floors, Picture Window, Closet, Open Floor Plan

Size: 25x25
On Floor: 1
1 windows.

Dining Room

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This bedroom faces the street, and has the largest of the closets in the home.

Hardwood Floors, Cloest

Size: 12x15
On Floor: 1
2 windows.

Bedroom #2

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Facing the backyard, on the NW corner, this bedroom is great for people who like the warmth - the placement of the furnace makes this probably the warmest room in the house during the winter.

Hardwood Floors, Closet

Size: 12x15
On Floor: 1
2 windows.

Bedroom #3

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This bedroom look out into the backyard, and is the quiestest room in the home.

Hardwood Floors, Closet

Size: 12x15
On Floor: 1
1 windows.

Kitchen

Pantry, Exit to Backyard

Size: 15x8
On Floor: 1
2 windows.

Bathroom

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Full basement with built-in storage. We used it as art and crafting space, but there is enough space for whatever you may desire.

Built-in storage, Stamped Concrete, Laundry Area

Size: 800 sq ft
On Floor: Basement
2 windows.

Detailed Descriptions

Home Description:
This home was built in 1953, and is fairly typical of the ranch-style homes built in Denver at that time. Its location is very convenient to light rail or I-25, and would be ideal for anyone who works downtown, in the DTC, or anywhere in between. We put in a new driveway, and a stamped concrete front walk. The hardwood floors are the original oak floors, and have been recently refinished. The backyard is large, with mature trees, and plenty of space to garden or to let children play. There is also a full basement, adding significantly more usable space to the home than other homes in the neighborhood.

Home Features:
Hardwood Floors, Newer Picture Windows, large driveway, large backyard, close to light rail, easy highway access, full basement.

Neighborhood Features:
The neighborhood is tucked between retail shops, restaurants, and I-25, making it a very 'walkable' neighborhood. It contains two schools within blocks of the house - Denver Academy and the Van Dellen Elementary School. Bike trails are easily accessible, with the Highline Canal being found both a few blocks east of the home, and about a mile south along Dahlia. For the most part, the restaurants in the neighborhood are locally owned, not chains. One of the specialties of the neighborhood is Middle Eastern Food, with some of the best places in town being just at the end of the street. We've also got some used book stores, Kokoro, Sunflower Market, Beau Jo's, Guiry's, and the standard places like King Soopers and Blockbuster. Just about anything you would need can be found within a mile or so of this location.

Nearby Points of Interest:
Highline Canal Trail - .5-1 Mile Away Cherry Creek Trail - 1 Mile Colorado Station - 4 Blocks Away Chez Artiste Theater - 1 Mile Colorado & Evans - Closest Main Intersection Observatory Park - 1 Mile Eisenhower Park - 1 Mile University of Denver - 1.5 Miles Washington Park - 2.5 Miles

Exterior Description:
The exterior has been freshly painted in the last year. The roof is in good shape, and the drive and front walk are almost brand-new. The lawns are in fairly good condition, and the backyard includes many blooming flowers in the spring, including some rose bushes.

What is the seller's favorite thing about this home?
Our favorite thing about this home is the openness of the front room. You will just have to see it. :)

Introduction

Dave Armstrong (NA) — Sat, 08 Mar 2008 06:40:49 -0600

Good Morning,

I'm new on AR, so I wanted to post a brief introduction to tell people why I am here.

I have a vision of how technology can improve the real estate industry. I've shared this vision with title companies and mortgage companies, and have received very positive feedback. But I haven't worked enough with those of you who are out on the front lines working with individuals buyers and sellers every day.

I am here to change that - I want to open a dialogue with the users of this site to find out what I can do for them. I fully intend to become one of the leading software vendors for the real estate industry, but I cannot succeed at that goal without communication with all of you to find out what you need.

As a start, I created a simple tool to write better home listings, available on http://www.homeadept.com.

I don't expect people to go look at it and think it is wonderful right away, but I do hope to get feedback on what you think it would take to become a wonderful product.

Over time, as I build more tools, I hope to again get feedback from you, in hopes of building an online toolkit that eases your job and makes you more successful.