Because many of the leading online real estate sites have opted to source listings directly from brokers, rather than becoming brokers themselves and displaying listings via IDX, there are many gaps in the inventory they display. Consumers are either unaware of this issue, and make life-changing decisions with incomplete information, or throw down their stone and start hopping. - 1000Watt Blog - Online Real Estate's Dirty Little Secret - Aug. 11th, 2008
They're hip. They're flashy. They're engaging... and the consumers seem to love them. 3rd party websites such as Trulia, Zillow and others are more popular than ever before. Why? That's an open question, but one that I have some theories on.
First of all, the consumer has begun to lose faith in the Real Estate Company. I believe this is due to a number of situations, but none more than our "protection" of data and forced "data-gathering" of our clients. I look at it as the Glenngary Glenn Ross dilemna... "the leads are weak", "always be closing", "coffee is for closers" etc. etc.
The difference is that consumers today don't want to be sold. They want to be engaged, they want all the information, they want you to help them... not close them. And so, they put their faith into 3rd party companies with "most" of the information, because they believe that's their main perrogative. They don't think about the 600 lb. gorrila in the room... how do these companies make money?
They're selling these leads back to the highest bidder, or selling "featured placement" of listings or company/agent branding back to those that can afford it. Maybe not the best qualified, or those with the highest satisfaction rate from clients... but those with the largest pocketbook or online advertising dollars. But... it doesn't have to be this way.
A number of months ago, 1000Watt Consulting worked together with Real Trends to compile a list of the Top Ten Real Estate Brokerage Sites in America. This bible that I have re-read and scratched countless notes across should serve as a whitepaper or blueprint for ANYONE looking to evolve with the online real estate consumer. And as someone who is currently working to develop a new site for their company, this paper has for the last 4 months served as a road map from experts in the industry to show how disconneted we have become from our clients.
As you read this paper, you'll note a recurring trend. Knowledge and Information, (not data), are provided to the consumer freely, openly, and in such levels that you forget it's a real estate site sometimes. By integrating real estate listings, statistics, school info., local restaurants, vendors, and more, these 10 sites provide the consumer with an experience that they won't soon forget.
Thanks to 1000Watt and Realtrends for taking us past the "lead capture" mentality and into the Future... of online Real Estate.
3 Comments on Making Sense of the Real Estate Web-World’s Future
FEB
14
2009
Hi Matt, In my view the consumer is already overwhelmed with information and data. Years back, virtually nothing about real estate and today it is boxed, bundled, expanded, and the internet is loaded with information. Yes, the consumer wants more. They want the address , the tax rates, the financing costs and they want it all in one place. They want to know the average utitily bills and when the grass was last mowed. Oh and they also especially want to know what the seller paid for it, just like buying a car. Maybe next, sellers will be expected to sell at published and competitive prices , fixed by some entity that says that is the REAL value.
What makes you think the consumer is overwhelmed with information? Given the vast amount of content available on the web on any subject, topic, categories and business vertical, I've never heard anyone suggest that consumer is overwhelmed by information. Frankly, I think when it comes to real estate, the consumer is actually quite underwhelmed and that the upon close inspection find the content offered by real estate to be limited, one sided, and self serving.
I think that the point I was trying to make is that the consumer is overwhlemed with DATA... not necissarily INFORMATION. Lumping the two of them together is really where many people make a huge error.
Sure the consumer can get DATA on housing value, mortgage rates, school districts, etc. etc. etc. But when it is pertainent to them specifically, packaged factually, and personally endorsed, that's when I believe that it becomes INFORMATION. Marc puts it well in his comment, "when it comes to real estate, the consumer is actually quite underwhelmed and that the upon close inspection find the content offered by real estate to be limited, one sided, and self serving." This isn't true INFORMATION in my mind... it's more one-sided, skewed, speculative data.
I think we all need to know and embrace the difference between the two.
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Hi Matt, In my view the consumer is already overwhelmed with information and data. Years back, virtually nothing about real estate and today it is boxed, bundled, expanded, and the internet is loaded with information. Yes, the consumer wants more. They want the address , the tax rates, the financing costs and they want it all in one place. They want to know the average utitily bills and when the grass was last mowed. Oh and they also especially want to know what the seller paid for it, just like buying a car. Maybe next, sellers will be expected to sell at published and competitive prices , fixed by some entity that says that is the REAL value.