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Local Brokers Show Strength Amid Internet Growth
Peter G. Miller
OurBroker®
Since the start of the Internet era there has been little doubt that the Web would emerge as a major marketing and communication tool in real estate -- but what would happen to local brokers as a result of online growth was not so certain.
We now have an expanding volume of data which shows that Internet growth is
not a threat to local brokerage. Somewhat like newspapers and television, the
Web has evolved as a way to market realty services, not replace them.
- According to NAR, the proportion of consumers who check the Internet for information before buying a home rose from 2 percent in 1995 to 67 percent in 1999.
- Hanley-Wood, a major industry publisher, announced at a Chicago seminar earlier this month that "42 percent of consumers who bought a new home and had Internet access used the Internet as a source of information." The study also found that new home buyers with Internet access spent an average of 4.4 hours online weekly."
- While Internet traffic increased 22 percent over the summer, an "e-Visory" study by the NPD Group and Media Metrix shows that during the same period "the number of unique visitors to real estate sites increased by 75 percent."
"About half of those who are online and in the market for a new property," says the study, "used the Internet to search for new properties online (49 percent). The majority of consumers searching for properties online are interested in purchasing a house (74 percent), with the remainder looking to buy land (10 percent), a condominium (10 percent), or co-op (1 percent), commercial building (1 percent) or some other property (5 percent)."
| Rank |
Site |
Unique
Visitors |
Market
Reach (%) |
| 1. |
Realtor.com |
2,494,000 |
3.2 |
| 2. |
HomeAdvisor.com |
1,560,000 |
2.0 |
| 3. |
HomeStore.com |
1,511,000 |
2.0 |
| 4. |
HomeFair.com |
924,000 |
1.2 |
| 5. |
Homes.com |
559,000 |
.7 |
| 6. |
NewHomeNetwork.com |
429,000 |
.6 |
| 7. |
Century21.com |
411,000 |
.5 |
| 8. |
Move.com |
373,000 |
.5 |
| 9. |
ColdwellBanker.com |
343,000 |
.4 |
| 10. |
HomeGain.com |
287,000 |
.4 |
| 11. |
ReMax.com |
279,000 |
.4 |
| 12. |
RealEstate.com |
273,000 |
.4 |
| 13. |
MovingCenter.com |
242,000 |
.3 |
Source: NPD Group, Media Metrix
Figures for July, 2000 |
While real estate-related Internet growth is clearly up, local real estate activity is not clearly down -- or down at all. NAR, for example, reports in its latest news releases that it has "more than 750,000 members involved in all aspects of the residential and commercial real estate industries. "
But wait. Wasn't Internet growth supposed to reduce the number of active brokers and salespeople -- in effect, were not local brokers supposed to be replaced by big web sites, just like local bookstores? If Web use is rising, shouldn't we see fewer and fewer NAR members?
"Some prognosticators," says NAR's 2000 Profile of Home Buyers and Sellers, "have predicted that the Internet would weaken the role of the real estate professional in housing transactions. Survey results indicate these fears are unfounded. Homebuyers who searched on the Internet were actually more likely to use a real estate agent to complete the home search and close the transaction.
"Eighty-seven percent of homebuyers," the report continued, "who searched on the Internet purchased their homes through real estate professionals, compared to a still high 76 percent for other homebuyers. Further, homebuyers who did not search on the Internet were more likely to purchase their home directly from the previous owner."
The fact is that only local brokers list homes and represent buyers. The Internet may bring more information to the public and speed the pace of communication, but it's plain that consumers want representation as well as data and photos.
Moreover, while consumers increasingly use the Web to find real estate information, not all sites have shared in the good times. Despite huge online traffic growth, some sites have seen less usage while profits have generally been illusive. The irony, of course, is that Internet competition was supposed to up-stage local brokers, not reveal their significance.
Save Money Financing & Refinancing
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Question Of The Week
Q I live in a condo in a retirement community in Florida. I am under 55 and live in a unit owned by my parents. The condo association wants me move out, because I am not 55. The By-Laws state that the unit is for the sole use of the owner and their adult family (by blood, marriage or adoption) and that the owner (one over 55) must occupy the unit. It DOES NOT state how long they must reside on premise to be an "occupant." My parents occupy the unit with me for a portion of each year.
My question... 1. If I do a Quit Claim Deed and make myself part owner of the unit, will that allow me to stay? 2. Can the association prevent the deed? 3. How will that effect my own taxes?
A Age discrimination in real estate is just that -- discrimination. However, the law makes an exception for properties devoted to those aged 55 and older, and sets standards which allow such enclaves.
When your parents bought the unit they were aware that the property was restricted to those over age-55. Was there any reason to believe the rules could or would be waived for them? Are there others living on the property who also violate age-related occupancy rules?
There are several reasons why the use of a quitclaim deed may lead to problems. It could create a tax liability for your parents because there has been an ownership change. The lender, seeing a new owner, may call the loan and new rates and terms may not be as good. The condo association may take you to court.
Speak with a local real estate attorney and a tax professional before going further. Also consider the social dynamics of your situation: Imagine if you stay but are shunned by the neighbors.
Weekly Resource
The United States Senate has produced an interesting and useful guide to online privacy entitled, Privacy In The Digital Age -- A Resource For Internet Users. This 40-page study has much to say about your online rights and how to protect them.
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