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Data is the New Real Estate Office

By
Real Estate Broker/Owner with Lake Homes Realty

Last month, I chimed in on Mashable.com, along with Keith Humphries (chief economist for Zillow) on 5 Ways Big Data Is Changing Real Estate

Naturally, Zillow and our brokerage are very different companies, including the big difference that while both have powerful websites, Lake Homes Realty is also a multi-state brokerage with real agents.

At the same time, both our businesses have embraced that consumers want information. They want lots of information. They want information so much that they will even accept that some information is wrong provided it is the exception, not the rule.  And the pool of information available online keeps growing and growing.

This represents a huge shift in the real estate industry. For years, the real estate brokerage office was critical for business. Before cell phones and GPS systems, the office was where the phone rang and those knowledge about the community could be found.

If you were interested in buying or selling a home, the brokerage's office was the center of knowledge for real estate.  This was its primary function, and in its day, it was very successful in this mission.

There were of course many secondary functions: Training for agents, file storage, and a place for clients and agents to meet. Many of these secondary functions are how brick-and-mortar offices are used today. But let's not kid ourselves. These secondary functions have now become the primary reasons to still have brick-and-mortar office.

Whether or not it is readily admitted by all, in the real estate industry the primary function of the physical office has moved to the web. Consumers now start on the web to learn about real estate markets, to research agents, and to find homes for sale. The office might be where the agent asks to meet a client, but many clients now are so compressed for time, they would just as soon start at the house they have already researched online.

The more information on the website, the more consumers flock to the site. The web is now the center of knowledge for real estate, including providing the means to connect buyers and sellers with great agents. 

Data is the new real estate office. It is not even the future, it is the now. Some brokers and agents may disagree, but it is not their call. The consumers have already decided.

 

 

Posted by

Glenn S. Phillips is the CEO of Lake Homes Realty, the multi-state, full-service, lake-focused real estate brokerage powered by LakeHomes.com.

 Lake Homes Realty - LakeHomes.com

 

 

Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

I have to agree with that statement. I too think that data is what all consumers are looking for first. However, I fear one day that they will not need us.

Aug 03, 2014 12:04 PM
Glenn S. Phillips
Lake Homes Realty - Birmingham, AL
CEO, Lake Homes Realty / LakeHomes.com

Hi Sussie,

I believe there will be a very long-term value in great real estate agents and brokers. However, the value has to be earned. In fact, our business model is built on combining the power of the web with select, expert agents, not around the "how many agents can pay us fees" brokeage model. 

Thanks! G

Aug 03, 2014 12:46 PM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

I hope Realtor.com can be taken back over by NAR and they hire some folks with internet experience. We are so far behind 

Aug 03, 2014 12:46 PM
Glenn S. Phillips
Lake Homes Realty - Birmingham, AL
CEO, Lake Homes Realty / LakeHomes.com

Hi Charles, I watch Realtor.com and the other sites closely. They have interet experience. In my opinion, at least part of their problem is that experience is old, and on the Internet, even tech gets old really fast! They have some unique advantages, but have not leveraged them due to outdated models.  Thanks!! G

Aug 03, 2014 12:49 PM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Glenn, you are absolutely correct. Everyone looking for information about real estate is going straight to the internet. It's unfortunate that a couple of really large websites have pretty much saturated the market with their info, and it's difficult for the little guy to get noticed.

Sep 07, 2014 12:57 PM