There are New Giants in the Land...
Zillow.com & Homegain.com Announce Plans for New Nationwide MLS System.
Yes, it is happening. A very profound event took place on 12-07-06 with the announcement that two very big players are forming a new MLS system.
This announcement was picked up from Inman News service,
Inman News
"Founded by former Microsoft executives and the co-founders of Expedia, online real estate firm Zillow is destined to shake-up the real estate world with its announcement today.
Zillow.com will now allow homeowners and real estate agents to post homes for sale for free. Additionally, in redefining what it means for a house to be "for sale," Zillow is enabling any homeowner to post a "Make Me Move" price."
There are several interesting and important elements of this event. Over the past decade the real estate industry has led the nation in e-commerce in the sense that as MLS systems went on-line there was a radical and rapid redefinition of what it meant to look for a home. The "guardians of the gate" mentality which was the vanguard of the old way of doing business in which Realtors were the sole recepients and source for home listings was replaced by a more egalitarian approach to sharing information through Broker Reciprocity agreements with members of the public and other entities.
Although the transfer of information to on-line systems has not been without its set-backs, by and large it has enabled a much more efficient method of communication and marketing and has in my opionion contributed significantly to the increase in the number of transactions completed successfully. This increase can be documented in the growth of the industry locally, nationally and internationally. With this type of spectacular success, it is not surprising that this would attractive attention from some "unconventional sources".
As a real estate agent, I am somewhat disappointed that as an industry we did not fully recognize and understand the enormity of the change and challenge the Internet would have on our industry and have therefore been slow to capitalize on its' unique opportunities. Data from NAR (National Association of Realtors) indicated that almost 90% of potential buyers consult the internet during their search for a new home, yet even on my Multiple Listing System, I still see a significant number of homes without any sort of visuals- media or slide-shows and some agents don't even have e-mail addresses. That is like being in business and not having a phone.
At a recent Broker conference I attended, the presenter indicated that the changes which were coming into the industry would radically re-make and re-engineer what we have traditionally understood to be the standard way of doing business. When he asked if the Brokers present had heard of Zillow, most of us had not! He was speaking the the "experts" in our business and we did not even know what the public had readily discovered...options!
I think the traditional real estate industry will have to re-imagine what it means to sell real estate in order to thrive and perhaps even survive. This is not necessarily a bad thing. It is true that there may be wisdom in not tinkering with something if it isn't broke, but if is foolishness to ignore the fact that something obviously broke a long time ago and needs to be transformed.
That is the key, changing the focus from reformation, our current approach, to transformation. Reformation speaks to a change which is initiated by external forces, transformation is a reflection of a radical process that starts in the interior and shapes and molds the environment it engages with. Transformation is powerful because it is proactive, not reactive.
The truth is that Realtors have the greatest knowledge base and experience base in successfully selling homes. The Code of Ethics, the standard of conduct which governs Realtor transactions places a high mark of excellence and integrity on the real estate process which has been a tremendous benefit to members of the public. There are very few professional organizations which mandate that their members ascribe to a Code of Ethics to conduct business.
In addition, the key to success in the industry has and continues to be exceptional service. I have to remind myself sometimes that I am not a Doctor when clients call at all hours asking for advice, encouragement or important details. Most Realtors truly enjoy helping others and this is further evidenced by the extraordinary recepients of the the "Good Neightbor Awards" handed out locally and nationally on a yearly basis for Realtors who are serving their local communities in excpeptional, self-sacrificing ways.
But, the industry has not understood the nature of change and has largely ignored the possibility of other business models being viable for real estate. This, I think if a mistake which is serious though not necessarily terminal. If we choose to fight it by obstructing the progress of others it will be like throwing good money into a failed cause. The world has changed, our industry has changed, Realtors must change! If we embrace change as an opportunity for innovation and creativity we can capitalize on the natural advantage we have of skill, experience, knowledge, information and client interaction to achieve extraordinary success.
I think we must start by acknowledging the true state of affairs. The industry is bogged down by many who profess to be Realtors but are not really practising. Can you imagine the accounting industry, engineers or physicians having large numbers of their active membership who are not engaged in the practice of their profession on a consistent basis? The sort of rapid and innovative thinking which will be required by Realtors necessitates full engagement, not part-time or less status.
It is sad to think that most individuals who practise real estate are completely unware and uninterested in the important ways in which their livlihoods are already being affected. The discussion when I go to real estate gatherings usually focuses on the local market or lack of it. I find it rare to hear discussions on how to facilitate Internet based transactions, yet this is the single biggest thing affecting the industry. It may seem expedient to put our heads in the sand like the ostrich and hope things blow over, but....I don't think they will. Change is the New Constant. It is here to stay!
You can click on the link below to read an article on the announcement and reactions from the real estate community
http://www.realblogging.com/default.asp?item=222637
Lola Audu, CRS Associate Broker Audu Real Estate
Lola welcomes your thougts and comments on this article.
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