When it comes to real estate, the Internet is usually seen in terms of listings, loans, and websites.

But a new and interesting phenomenon is now emerging: Use of the Internet as a substitute for actual floor space -- a transition which will impact home preferences, shopping malls, and office centers nationwide.

Consider Egghead. Two years ago the software retailer operated 150 stores nationwide. Now the number of locations is headed toward zero as Egghead moves online exclusively and closes all retail outlets.

Or, think about the growing army of home-based workers, many of whom use the Web daily for commerce and communication. The Bureau of Labor Statistics reports that the number of people paid for working at home went from 1.9 million in 1991 to 3.6 million in 1997. Another 11.1 million bring work home from the office.

The BLS says 88 percent of all full-time home workers -- 3.17 million people -- do white-collar work. If instead of working from basements and bedrooms these folks instead each leased 200 sq. ft. of office space, then demand for commercial office facilities would increase by 634 million sq. ft.

Or, as Vice President Gore told graduates at New York University, "for you, e-mail and the Internet are second nature; starting your own business will probably mean a website before it means an office lease."

What we are seeing is the cusp of a revolution where many things now local will move online. As with any major transition there will be winners and losers, and in terms of real estate a short breakout looks like this:

• The demand for larger homes will increase, not because the number of household members is growing, but because homes with more space offer greater potential and utility as workplace settings.

• New homes and retro-fitted older properties will increasingly tie into the Web. Homes with three and four phone lines will be common.

• Demand for small office and retail space will be reduced as a result of expanded home office popularity.

• Home buyers will want more amenities in part because workers are more productive when they have a comfortable office environment.

• The growth of recreational locations, such as homes on golf courses, will continue. If you "commute" by modem you can be anywhere, so why not be someplace you like?

• Zoning rules will evolve. In my community you don't even need a permit for most home offices.

• A new specialty for brokers will emerge, those who serve the home-office community. To reach this market brokers will join home office groups, build mailing lists, and create home-office link collections on home pages.

How soon will this happen? Just think where many people are reading these words.

Question Of The Week

Q Many years ago we had a dispute with a plumber who filed a lien against our property. The claim is not justified and we have not paid it. We expect to sell our home shortly and worry that the lien might hold up the sale. Is there a point at which this lien is not longer valid?

A A lien is a public notice that someone has a claim against a property owner and that such a claim may be "enforced" when the property is sold, according to Douglas F. Wasser, an attorney in New York City with an extensive realty practice, Judgments from a court and mechanics liens are examples of such claims.

Wasser points out that in the case of a mechanics lien, such as the claim made by your plumber, a statute of limitations may apply. If the plumber does not act within a certain period to enforce the lien it can be dismissed.

Given that liens set off bells with lenders and title insurance companies, it would be wise to resolve this matter before marketing the house. Perhaps offer to settle at a discount if the claim is small or obtain a bond to pay the lien if it is found to be valid. Before going further, see an attorney in the area where the property is located because lien rules vary by state.

Weekly Resource

If you have a website -- or would like to build one -- be sure to bookmark HTMLGoodies.com. This is a uniquely helpful site that offers basic scripts, tips, and information.

Everything is explained in plain language and -- best of all -- access is free.

Mr. Miller welcomes your questions, comments, news releases, and suggestions. He can be reached by e-mail at OurBroker.

Editorial Notice: Content on this page reflects the opinions of Mr. Miller only and not necessarily the views of any publication, organization or website owner.

Published: May 26, 1998

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