As the Internet continues to reshape nearly every aspect of our lives, the real estate industry finds itself embracing a number of new practices. Current technologies allow homebuyers and sellers to access more information than ever before.
Websites such as Zillow.com and Redfin.com allow customers to find potential homes, view pictures, read reviews and estimate prices without talking to a real estate agent.
“Much more information is available to people than there was previously,” said Matthew Koenig, a Realtor specializing in Magnolia for Windermere Real Estate. “I think it changes how we market homes: We assume that everyone is going to see a home on-line at one time or another.”
Even with more information readily available to homebuyers and sellers, real estate agents are in higher demand than ever before. According to Colwell Bank Bain Realtor John Deely, 89 percent of homebuyers in 2011 worked with an agent, up from 69 percent in 2001.
Accessible information
On-line sources of real estate information have found a place amongst first-time homebuyers. According to Koenig, people younger than 30 generally research listings on-line before consulting with a real estate agent.
Realtors have used the wealth of information readily available through the Internet to improve the services that they provide. According to Deely, real estate websites have allowed Realtors to gather greater feedback from clients; this feedback has been used to improve strategies for approaching buyers and sellers.
“We maintain our relevance and value by helping costumers assess the information,” Deely said. “There is so much information out there, it can be difficult wade through it all. We help clients access and gather the information they need and then provide strategic negotiation with sellers.”
As a leading real estate website, Redfin.com functions as a general resource for those interested in buying or selling a house. According to representative Matt Wakefield, brutal honesty is emphasized on Redfin.com. Real estate agents attach their personal observations of properties — whether positive or negative — to Redfin listings.
Connecting clients to a Realtor they feel most comfortable with is another key function of Redfin.com. Agents on the site have a review of every transaction they’ve ever taken part in listed on their profile, giving clients the opportunity to learn crucial details about their potential Realtor.
Newer features to Redfin.com include Open Book, which serves as a place for clients to review lenders, renters and others involved in the real estate process. As of the past month, Redfin.com now offers real-time updates when homes enter the market. This allows buyers to get a head start on the bidding process.
“The overall idea is giving the customer as much information as humanly possible,” Wakefield said. “That way, they can do a lot of research on their own before connecting with an agent. We want to make it so, by the time they talk to an agent, it becomes a two-way discussion.”
Zillow.com functions in a very similar fashion to Redfin.com. The site allows clients to search for homes for sale and rent, as well as connect with Realtors and other real estate professionals.
A key feature of Zillow.com is its price and mortgage calculators. The site inserts publically available information into mathematical algorithms to make financial estimations. This feature has attracted criticism from some in the real estate industry.
According to Koenig, the algorithms can’t account for certain variables, such as how well previous owners have taken care of a home. This leaves the potential for estimations from Zillow.com to be inaccurate.
“People can go on Zillow, and it can be correct,” Koenig said. “It’s not bad; it just has its limitations.”
Bridging the gap
According to Deely, the Smartphone is beginning to play a greater role in the real estate process that will only increase as time passes. Zillow.com, Redfin.com and Windermere all have mobile apps readily available. These allow clients to instantly hear of local real estate happenings, as well as find housing and community information relative to their current location.
Real estate websites and newer mobile technologies have made it easier for homebuyers and sellers to become integrated in the real estate process. Nonetheless, the role of the Realtor is as crucial as ever before. Sites such as Zillow.com and Redfin.com have helped bridge the gap between Realtors and clients, allowing for more productive dialogue.
“I don’t think you lose out on anything by starting your search on-line,” Koenig said. “You’re seeing all this inventory out there, but real estate is not virtual. Homes are physical things, and you can’t substitute talking to someone who is in them every day.”